Former fraud investigator unveils how people in Nottingham can avoid falling victim to cryptocurrency scams

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Cryptocurrency’s meteoric rise has attracted not only investors but also a wave of scammers exploiting the technology’s anonymity and lack of regulation.

Across the UK, cryptocurrency scams cost victims a record £306m in 2023, marking a sharp increase of 41% from the previous year, according to Action Fraud.

In light of the increase in cryptocurrency scams, former fraud investigator Megan Searle, now a Product Owner for Nottingham-based leading investigative tech firm Altia, which holds offices in Glasgow, has urged online users to remain vigilant as they traverse the world of cryptocurrency.

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“Fraud involving digital currencies is surging, with scammers employing diverse schemes to deceive victims,” warned Megan.

Megan Searle, former fraud investigator and product owner at Nottingham-based investigative tech firm Altia.Megan Searle, former fraud investigator and product owner at Nottingham-based investigative tech firm Altia.
Megan Searle, former fraud investigator and product owner at Nottingham-based investigative tech firm Altia.

“These include phishing attacks, fake investment opportunities, romance scams, and fraudulent crypto projects known as rug pulls,” added the expert.

Megan explains that scammers are increasingly preying on vulnerability and lack of awareness, often targeting people seeking quick returns or caught up in the hype of digital currencies.

“People dive in, wanting fast profits, unaware of the risks posed by scammers lurking in every cyber corner,” she said.

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Identifying scammers is especially challenging as they often operate on a global scale. “Fraudsters frequently work outside UK jurisdiction,” she explains.

“This creates significant barriers for investigators, who often lack the authority to pursue suspects in other countries.”

Megan highlighted several common crypto scams, from victims being tricked into sending cryptocurrency with the false promise of receiving a larger return, or fraudsters building online relationships to gain trust and manipulate victims into transferring funds.

Phishing attacks and rug pulls where developers abandon fraudulent cryptocurrency projects after collecting funds from investors, are also common scams, as well as fake apps which mine cryptocurrency but fail to generate returns.

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To avoid falling victim, it’s essential to recognise warning signs of fraudulent schemes.

Megan said: “Poorly written white papers are a flag immediately, as legitimate projects are detailed and well researched. Meanwhile, over-the-top promotional campaigns promising guaranteed returns often signal fraud.

“Get rich quick claims tend to be too good to be true.”

Cryptocurrency fraud poses unique challenges for investigators, too, with blockchain technology, allowing users to transact anonymously, complicating the tracing of stolen assets.

UK law enforcement agencies, including the Financial Conduct Authority (FCA) and National Crime Agency (NCA), use advanced blockchain analysis tools to detect fraudulent activities and trace illicit transactions.

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However, international cooperation remains a hurdle due to differing legal frameworks and regulations.

Victims are urged to report scams to Action Fraud, the UK’s national cybercrime reporting centre, which offers resources to prevent further harm.

Offering the following tips to protect against cryptocurrency scams, Megan has the following advice.

“Conduct thorough research before committing funds to any crypto project,” she said. “Look for clear documentation and avoid schemes promising unrealistic returns.

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“Verifying the credibility of the platform or exchange is crucial and never share your wallet’s private keys or security codes. While cryptocurrency offers exciting investment opportunities, it is essential to approach it with caution.

“Staying informed and vigilant is the best defence against falling victim to fraudulent schemes.”

Headquartered in Nottingham, Altia serves a global audience, providing law enforcement agencies, government departments, and private sector businesses with intelligence and investigation software.

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