Despite a slump in the crypto market, scammers have seen their profits boom this year
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Cyber criminals are increasingly exploiting the boom in cryptocurrencies to scam investors out of tens of thousands of pounds. This year alone, fraudsters have already taken £118 million, pocketing an average of £36,250 per fraud.
According to NordVPN, crypto criminals have seen their profits almost double over the last year to £226 million between them. Marijus Briedis, chief technology officer and digital privacy expert at NordVPN, said: "With inflation skyrocketing and traditional savings rates failing to keep up, bogus crypto investment schemes offering the prospect for high returns are the perfect bait for scammers."
"These frauds are thriving, despite the huge crash in Bitcoin and other currencies. Worryingly the clear rise in the amounts stolen per fraud shows the scammers are getting better at fleecing their victims."
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This, combined with the fact cryptocurrencies are not regulated by the UK Financial Conduct Authority, means criminals have almost free rein to commit fraud with bogus investments. Data suggests that while crypto scam incidents have only slightly increased in number, the figure they are able to extract per victim has soared.
These scams usually take the form of 'official' looking investment opportunities, often endorsed by respected figures such as the Moving Saving Expert, Martin Lewis. In reality, he has absolutely nothing to do with them.
Scammers will send out emails encouraging investors to click on a link or download an app which allows victims to access an exciting new fund. However, by clicking this link or downloading an app, all of your personal information on the device can be stolen, used to extract money, or sold to the highest bidder on the dark web.
To avoid the crypto scams which can also include investing in non-existent coins, you should always use official app marketplaces such as the Apple App Store. Do not be rushed into knee-jerk financial decisions under pressure from an email or text out of the blue.
Always be suspicious when it comes to anything to do with money. Never trust a random link or a new crypto coin without doing your homework, even if it appears official.
Finally, do not believe in celebrity endorsements. More than 1,000 fake schemes claiming to be backed by Martin Lewis have been reported to Action Fraud.
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