One of the world’s largest banks has warned that cybercriminals are taking advantage of a lack of understanding about cryptocurrency to trick people into investing in fraudulent scams. A recent blog from Santander warns that criminals are impersonating financial advisers, company representatives and celebrities, and using cryptocurrencies as bait to scam unsuspecting investors.
According to the bank, one goal is to have people buy cryptocurrency, which they then transfer to “financial advisors” to multiply their investments. But the advisors are scammers who make off with the money. And because cryptocurrency is not regulated, and the technology that supports it (the blockchain) cannot be deleted or altered, Santander warns that “there’s no way out of transactions if you get caught in a scam”.
The bank also provides an example of one of the most commonly used scam techniques. This describes a woman clicking an ad by her favourite artist, supposedly recommending a cryptocurrency investment. After being diverted to a seemingly legit website, the woman provides her personal details to receive more information. She is then contacted by a scammer (pretending to be a financial advisor) who exploits her lack of understanding about how digital assets work, and convinces her to download and install a software program onto her computer. When she deposits money into the cryptocurrency platform, the hacker accesses her account and steals her funds.
Fake cryptocurrency investments are a growing concern. In 2021, according to Action Fraud, Britons lost more than £150 million to cryptocurrency fraudsters, with 18-25-year-olds the hardest hit. And with the equivalent of millions of pounds being stolen from cryptocurrency holdings each year, this is a very lucrative market.
However, it’s untrue to say that it is impossible to recover your losses in all cases of cryptocurrency scams. And at KP Law, we have helped many people affected by this type of investment fraud to get their money back.
Nevertheless we back the advice from the Financial Conduct Authority which states that: “Crypto assets are considered very high risk, speculative purchases. If you buy crypto assets, you should be prepared to lose all your money.”
Do you have a crypto fraud or mis-selling claim?
Have you been persuaded to invest in risky, unregulated, and unsuitable schemes involving NFTs or other forms of crypto, and promises of significant returns did not materialise? Or did you invest in a crypto scheme that turned out to be a scam? If so, we might be able to help.
Representing individuals who have fallen victim to financial scams and mis-selling, we have managed to reclaim hundreds of thousands of pounds for our clients.
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Providing a cool head in a crisis, we remove the burden from your shoulders as we fight for justice. What’s more, because we offer no-win, no-fee funding arrangements, you will benefit from expert legal support and complete peace of mind without having to worry about costs. Our solicitors have even won cases where victims had been told that there was little to no chance of compensation.
If you are the victim of a crypto investment scam or mis-selling, contact us in confidence to find out how we can help.
