British Watchdog Says Cryptocurrency Scams Are On The Rise

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This week, Britain’s Financial Conduct Authority republished a warning that was first announced earlier this year, in June. According to a publication, celebrity photos are increasingly being used on the social platform to make people invest their hard-earned fiat and cryptocurrencies into scams. 

FCA Warns Against Cryptocurrency Scams On The Rise

In June 2018, the FCA released a warning to Britain’s national population of ~65 million individuals. This week, on the 17th of August, they republished the warning. The publication warns the population against a large number of cryptocurrency scams on social media networks, as well as other platforms. 

According to the FCA, several scam accounts have been created on social media networks. These “scam accounts” uses celebrity photos, as well as photos from well-known figures in Britain, to gain the trust of social users. 

The majority of these “scam accounts” would share messages on their timelines that promote investment opportunities. These investments allowed people to deposit either cryptocurrency or fiat currency into an account. In turn, the investor is promised a significant return on the money they decide to invest in the opportunity.

Unfortunately, once money is deposited into the account, the investors would not hear back from the company. Thus, leading to a loss of their entire investment. Thousands of people are expected to have already fallen for these scams, and these warnings have been published to help avoid more people from being scammed out of their money. 

In the warning, one particularly important factor that is noted is that the majority of the scams that have been reported within the UK has listed addresses that are located in London on their websites. 

These websites tend to offer excessively high returns on investments — which is a particular factor that people are advised to look out for. When an investment opportunity seems too good to be true, individuals should ensure they do thorough research to help them avoid being another victim of these scams. 

As it stands, no accurate data has been released to provide an overview of how much money has already been swindled by scammers. It is, however, expected that the amount might be quite high, likely in the millions.

Cryptojacking In UK Also A Major Concern

Apart from numerous cryptocurrency investment scams circulating on the social media networks within Britain, another great concern regarding the cryptocurrency industry has also surfaced recently. 

According to recent reports, an estimated 59% of companies in the United Kingdom have now been affected by what is called “cryptojacking.” This involves a malware program infecting computers of corporate organizations. The malware would then utilize the hardware of the infected computer to mine for cryptocurrencies.

The majority of reports regarding “cryptojacking malware” detected within the UK accounts for cases within the last six months. In the last month alone, an estimated 39% of companies in the UK have been affected by these malware programs. 

Once infected, a computer’s resources are used to mine cryptocurrencies like Bitcoin and Ethereum. The mined crypto coins would then be allocated to wallet addresses that have already been built into the malware application – which belongs to the individuals who originally wrote these pesky little programs. 

UK companies are now advised to increase the security of their computers and to ensure their anti-virus and anti-malware applications are kept up to date, which ensures that there is effective protection against cryptojacking. 

A republished warning by the FCA has caused concern among the Britain population. The FCA warns about recent investment scams that ask people to invest money or crypto coins in exchange for a huge profit and return. Unfortunately, these individuals then soon learn that they have fallen for a scam.

Amna El Tawil is an experienced journalist with a strong background in financial writing. She is a cryptocurrency enthusiast and has been writing about digital currencies since 2016. When not writing, Amna can probably be found in bed with a book cuddling with her beloved Siberian Husky.

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