- Following a Financial Conduct Authority (FCA) prosecution, two crypto scammers were ordered to repay a total of £851,402.27 under the Proceeds of Crime Act in court today
- It’s a victory for the FCA who also secured prison sentences for the scammers and have worked to have the money confiscated
- If they don’t repay within three months, they’ll have time added to their sentences
- At least 65 victims lost £1,541,799 in total as a result of the scam and will receive all the money recovered – but even if it’s all paid, it still leaves them with only 55p for every £1 lost
- Seven tips to protect yourself from investment scams
Sarah Coles, head of personal finance at AJ Bell, comments:
“Victims of a £1.5 million fraudulent crypto investment scheme should finally get some of their money back. It’s a real victory for the FCA, but some of the victims have had to wait almost 10 years for this news, and even once the money eventually arrives, they won’t get a full refund. It’s why it’s so important to be alive to the risks of investment scams like this.
“The money was taken by scammers who cold-called people and persuaded them to invest in fake crypto opportunities through companies including CCX Capital and Astaria Group LLP. The FCA has identified 65 victims and contacted them, but it says anyone who thinks they were also caught out by this scam should call their helpline on 0800 111 6768.
“Clawing back money from scammers is notoriously difficult. Some victims have been waiting for just under a decade for this news, because the scam itself took place between February 2017 and June 2019. Even now, they’re only set to get 55p for every pound stolen from them, and to make matters worse, even this isn’t guaranteed, because it relies on the scammers paying up.
“This is also a best-case scenario. The FCA is committed to holding scammers to account, but it’s not always possible, so there’s a huge risk that if you fall foul of crypto scams, you will lose everything you put into them. It’s one of the reasons investors should take care over any potential investment.
“Investment fraud scams tend to use high pressure tactics to persuade people to invest in things that are either very high risk, doomed to fail or completely non-existent. Some operate via phone calls, video calls or text messages, but a huge number of them operate online – most commonly by sending emails or through social media. We’ve looked at seven tips and questions to ask yourself to stay safe from scammers.”
Seven tips to stay safe from scammers
- Be sceptical about any unsolicited calls or emails relating to your finances. It makes sense to assume something is a scam until it’s proved otherwise.
- Think about the person contacting you. Is this someone who might reasonably be getting in touch with you?
- Do you know the organisation they’re contacting you from? If it’s a company you’re familiar with, cut contact and get in touch with them on their official lines. If you’re not familiar with them, cut contact and do some research. Check they are regulated by the FCA.
- Are you being put under pressure to act fast? It’s a classic scammer tactic, because they want you to act without thinking or talking to family or friends.
- Do the returns sound too good to be true? If you’re being offered low risk and guaranteed high returns, it’s almost certain you’re being misled.
- Have they asked you to make an up-front payment with the promise of something later? This should ring alarm bells.
- Think before you click on links in emails or messages, or on adverts online. They can take you directly to a scammer.
