How greedy investors lost £27m to crypto, forex scams in 2018/19

Motolani Oseni

Investors who are interested in quick and mouth watering returns on investments have lost not less than a whopping £27 million between in 2018 and 2019, Financial Conduct Authority (FCA) and Action Fraud has revealed.

FCA on Tuesday while warning the public to be wary of investment scams carried out via bogus online trading platforms.

The FCA explained that the warning became very necessary as crypto assets (crypto) and forex investment scams reports more than tripled last year to over 1,800.

The Financial Conduct Authority said that this was possible because of high returns on investments in crypto and forex, which were promised the fraudsters.

Fraudsters often use social media to promote their ‘get rich quick’ online trading platforms. Posts often use fake celebrity endorsements and images of luxury items like expensive watches and cars.

These then link to professional-looking websites where consumers are persuaded to invest.

Investors will often be led to believe that their first investment has successfully made a profit. The fraudster will then contact the victim to invest more money or introduce friends and family with the false promise of greater profits.

However, eventually, the returns stop, the customer’s account is closed and the scammer disappears with no further contact.

Action Fraud reports, however, showed that on average, victims were each scammed out of £14,600 from forex and crypto scams in 2018/19.