Recently UK Finance revealed that over £239 million was lost to authorised push-payment fraud in the first six months of 2023, with investment scams accounting for nearly a quarter of reported losses. These figures sadly confirm that fraud is a national concern and that anybody can fall victim.
Scammers prey on individuals seeking extra income by offering enticing investment opportunities that ultimately collapse, leaving victims with substantial debts.
CEL Solicitors have recovered over £70 million to date for fraud victims. Our specialist fraud department speaks to hundreds of clients a week, particularly those who have lost thousands to bogus crypto investments.
As legal experts dedicated to recovering money lost fraud, we believe that it is important to arm individuals with knowledge and awareness about the tactics employed by crypto scammers.
How Crypto Scammers Target Their Victims
Fraudsters today are now targeting their victims online through social media, dating apps, emails, cold calls, and fake ads on platforms such as Facebook, Instagram, and Google. Employing such tactics allows scammers to appear professional, thus tricking victims into handing over their personal details and banking information.
According to UK Finance, 77 percent of authorised push-payment fraud originated from fake websites, social media posts, and more.
The rise of Artificial Intelligence (AI) has provided scammers with sophisticated tools to trick victims. Fraudsters may even go as far as using AI to fabricate videos of public figures like Elon Musk and Martin Lewis endorsing fraudulent investment opportunities, adding a layer of legitimacy to their scams. As technology advances, it becomes increasingly imperative for individuals to remain vigilant and informed to protect themselves against evolving methods of exploitation.
Read more here: AI Scams: Don’t Let Bots Steal Your Money
How Crypto Scammers Convince People to Invest
Once the fraudsters have targeted their victims, they will be instructed to sign up for a fake trading platform. These websites are highly interactive, allowing users to access their funds and see their profits increase.
Individuals are usually encouraged to invest a small initial fee ranging anywhere between £250 to £500. The scammers promise high returns on these investments, eventually pressuring victims to invest larger amounts to receive greater profits. Often, fraudsters will refund a portion of the client’s initial investment, reassuring them that they can withdraw their funds from the platform freely.
A professional website with fabricated testimonials and live updates is usually enough to trick people into sending over thousands to fraudsters. However, criminals will employ further manipulative tactics, such as sending their victims articles and training videos, adding them to crypto WhatsApp group chats, and providing them with their own ‘financial advisor’.
Tell CEL
Despite the elaborate tactics employed by scammers, there are measures that individuals can take to protect themselves. Vigilance, scepticism, and thorough research are paramount when considering any investment opportunity, especially in the rapidly evolving landscape of cryptocurrency. By staying informed and seeking advice from reputable sources, individuals can mitigate the risk of falling victim to these deceitful schemes.
If you have fallen victim to a cryptocurrency scam, tell CEL. Our dedicated fraud department is on hand to offer free no-obligation advice and to help you get your money back. Call 0808 273 0900 or complete an online form and we will be in touch as soon as possible.
