The latest statistics from Action Fraud show that in June and July, victims reported losing £2,059,501.29 to cryptocurrency scams – an average of £ 10,095.59 per person.

Fraudsters are cold calling individuals and using social media platforms to advertise ‘get rich quick’ investments in mining and trading cryptocurrencies, such as Bitcoin. These fraudsters will convince victims to sign up to cryptocurrency investment websites and to give their personal details, such as credit card details and driving licenses, to open a trading account.

The victim will then make a minimum deposit, after which the fraudster will call them to persuade them to invest again to achieve a greater profit.

In some cases the victim will realise they have been defrauded but only after the website they used has been deactivated and the fraudsters can no longer be contacted.

Director of Action Fraud, Pauline Smith, said: ‘It is vital for anyone who invests or is thinking of investing in cryptocurrencies to thoroughly research the company they are choosing to invest with.

‘The statistics show that opportunistic fraudsters are taking advantage of this market, offering investments in cryptocurrencies and using every trick in the book to defraud unsuspecting victims.

‘If you think you have been the victim of this type of fraud, contact Action Fraud.’

The rising popularity of investing in cryptocurrencies has meant that fraud in this area has also increased. In response to this the City of London Police’s Economic Crime Academy (ECA) has recently launched a new course on cryptocurrencies. The new one-day course, Cryptocurrencies for Investigators, is designed to give officers the skills and knowledge to recognise and manage cryptocurrencies in their investigations.

Action Fraud gives the following advice on spotting fraud:

• Do not assume it is real – professional-looking websites, adverts or social media posts do not always mean that an investment opportunity is genuine. Criminals can use the names of well-known brands or individuals to make their scams appear legitimate.
• Do not be rushed or pressured into making a decision – a genuine bank or financial organisation will nott force you to part with your money on the spot. Always be wary if you are pressured to invest quickly or promised returns that sound too good to be true.
• Stay in control – avoid uninvited investment offers, especially those over cold calls. If you are thinking about making an investment, get independent advice and thoroughly research the company first.
• Every Report Matters – If you have been a victim of fraud or cyber crime, report it to Action Fraud.

Report by Amy Austin