FCA warns after £27m lost to crypto and forex investment scams

The UK’s financial watchdog FCA has warned of the development of fraudulent online trading platforms following the reported variety of cryptocurrency and international exchange scams greater than tripled in the past fiscal year to over 1,800.

The FCA was probing the possible damage done to customers using crypto assets like bitcoin, an electronic money that soared in popularity in 2017 but has since drop more than 60 percent of its worth. The watchdog said the amount of crypto and foreign exchange fraud claims had jumped out of 530 to 1,834 from the 2018/19 fiscal year to early April, according to information supplied by Action Fraud, the federal fraud coverage agency.

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The huge majority — 81 percent — of those claims associated with cryptocurrency scams. While the amount of accounts jumped, typical person losses dropped from #59,600 to 14,600. Pauline Smith, Action Fraud manager, stated:”These statistics are startling and give a stark warning that individuals have to be careful of imitation investments on internet trading platforms. It is critical that individuals carry out the required checks to make sure that an investment they are considering is valid.”

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