Syed Rahman and Ulrich Schmidt outline the National Crime Agency’s message and the methods it is using.
The National Crime Agency (NCA) has begun a campaign to highlight the risks of crypto investment fraud, with a focus on men aged under 45.
The campaign, which forms part of the government’s Stop! Think Fraud initiative, emphasises the dangers of fake crypto platforms that aim to dupe people into paying money for what they believe to be investments.
Action Fraud, the UK's national reporting centre for fraud and cybercrime, says that it received 17,000 reports last year from UK victims of crypto investment fraud. The most common group of victims was men aged between 25 and 44; which the NCA is keen to reach with its anti-crypto fraud message.
The NCA campaign includes a video that tells the story of one crypto investment fraud victim. It warns people about being fooled by claims that they have been specially selected and have the chance to make huge financial returns.
The NCA has also produced an info sheet that includes ten tips to help recognise a crypto fraud scheme before any money is paid to criminals. These tips include not responding to unsolicited approaches to invest in crypto, ignoring pressure to make extra investments and being suspicious of any instructions not to share news of your investment with relatives or friends.
Nick Sharp, Deputy Director Fraud at the National Economic Crime Centre (NECC) in the NCA, said:
“Crypto investment fraud is one of the fastest growing types of fraud in the UK. Lives are destroyed and people can sometimes never be made whole after falling victim to this crime.
"That is why the NCA is actively targeting and disrupting the criminal networks behind crypto investment fraud through investigations and intelligence sharing with international partners. However, prevention remains equally as important as disruptions.’’
Reputation
Cryptocurrency has often been seen as a “get rich quick” scheme. While its image has improved over recent years and it has become increasingly viewed as a legitimate asset, crypto has still not fully shaken off this reputation in many people’s eyes.
Younger people, who are often struggling with debt and / or rising costs, may look to any schemes that promise quick riches as a way to tackle their financial pressures. And this makes them more vulnerable than many to predatory crypto advertising and those who look to make illegal crypto-related gains.
But while anyone who is thinking of investing in crypto needs to be aware of the fraud risks, it is also important that those who do fall victim to crypto fraud realise that they can do certain things to minimise the damage.
These include:
- Contacting your wallet / exchange provider the moment you suspect a fraud has been carried out. They may be able to freeze some of the funds if they are contacted fast enough.
- Collecting all evidence of the payments you have made, including accounts and transfer references. This will help with any attempt to trace the funds and recover them.
- Seeking expert legal advice to assist you in your communications with the wallet/exchange provider and the authorities. Speedy action by those with the relevant expertise and experience is vital.
But what cannot be over-emphasised is the importance of being fully informed before you make any decision regarding investment in crypto. Prevention, as the NCA’s action indicates, is the most important step. Recovery can be a time-intensive, expensive task.
