United Kingdom FCA reveals $255 million lost in cryptocurrency and other investment scams

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  •  4,996 cases reported in 2018; making up 85% of all scams reported.
  • Scammers have changed tactic: Potential victims are now approached online.

According to a report from the United Kingdom Financial Conduct Authority (FCA), the cryptocurrency space is still a dangerous ground. The authority says that at least $255 million was lost due to crypto scams and other investments.

The FCA revealed the outrageous figure in a press release published on February 6, 2019. It detailed that its call center data shows that most of the scams dealt with investments in bonds, shares, forex as well as digital assets. The victims that suffered under the scams lost an average of $37,000. There were 4,996 cases that have been reported making up 85% of all the scams that were reported in 2018.

The FCA had already issued a statement cautioning investors to be extremely vigilant when putting funds in investment portfolios earlier in 2018. The authority notes that scams are changing tactics with most now based online. The scammers have websites that are professionally built, approach potential victims via emails and even via social media platforms like Facebook.

 

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