Over the last fiscal year, UK investors have lost Β£27m ($34,38m) due to cryptocurrency scams, the UK regulator, the Financial Activities Authority (FCA), has said.
According to the FCA, from April 1, 2018 to April 1, 2019, every UK citizen who fell victim to cryptocurrency scams lost an average of Β£14 ($600) due to their actions.
During the same period, the number of cases of cryptocurrency-related fraud has tripled. According to the FCA, the number has risen to 1800 in a year. An FCA press release states that scammers often use social media to promote "get rich quick" schemes.
As a rule, social media posts are used by scammers in order to attract the attention of potential investors. They often include fake celebrity claims linking to professionally executed websites that further encourage users to invest in the fraudulent project.
Typically, scammers lure victims with promises of high returns on investment. They then promise even greater returns on further investment. In the end, everything ends in failure.
Data from the Australian Competition and Consumer Commission (ACCC) suggests that the Green Continent also experienced a surge in cryptocurrency-related fraud last year. As a result, Australians lost $2018 million in 4,3 due to similar cases of fraud.
Source: 3dnews.ru