UK FCA report: $34 million lost in cryptocurrency and forex related scams

According to a report released by the United Kingdom watchdog, the Financial Conduct Authority (FCA) indicates that the nation lost over $34 million in relation to both crypto and forex scams. The FCA took into account the period between 2018 and 2019. The report published by the Financial Times said that the authority used the data collected by a cybercrime reporting center, Action Fraud. Individual loss ranged between $76,000 and $18,500, at the same time, the total loss came to down to $14 million.

The report said that the number of reported cases more than tripled to 1,834. Moreover, 81% of the reported cases were linked to crypto scams. As of now the FCA is deliberating putting a ban on “high-risk derivative products linked to cryptoassets.” In the meantime, the FCA executive director, Mark Steward warns:

“Scammers can be very convincing so always do your own research into any firm you are considering investing with, to make sure that they are the real deal.”

The authority reported that most scammers are using social media channels to dupe potential investors. It noted that scammers have a tendency to used celebrity pictures to endorse their portfolios in addition to using luxury brands like cars as well as watches.