Cryptocurrency News

FCA Warns About Impostors

By November 25, 2020 No Comments

The crypto industry has had to contend with a number of issues over the years. These include a lack of a proper regulatory framework and distrust from the public. Another one of these issues is the occurrence of scams within the industry. Malicious parties have been known to trick their victims into handing over their crypto or private keys and have also impersonated popular people and institutions to gains public trust.

One of the latest of these has been reported by the Financial Conduct Authority (FCA) in the United Kingdom. As per a new public statement, they have issued warnings about criminals who are impersonating to scam their victims.

Impostors on the Loose

As per the announcement, the scammers have claimed association with by using  Blockchain Ltd, a copycat company created to deceive the public. The real, a trading and crypto wallet company, operates under the agent Blockchain Access UK Ltd and principal entity Modulr FS Limited. Additionally, the company holds certification from the FCA, unlike the impostors.

Thus, the Authority has warned the public to steer clear of them.

“Fraudsters are using the details of firms we authorize to try to convince people that they work for a genuine, authorized firm. This firm is not authorized or registered by us but has been targeting people in the U.K., claiming to be an authorized firm,”

the announcement says.

The announcement also revealed the phone numbers and email addresses of some of the known criminals for the public’s awareness. The public was advised to confirm the authenticity of any company claiming to be affiliated with or any other crypto entity to avoid being swindled out of their money. In the cases of most crypto scams, it is very difficult for governmental bodies to prosecute the offenders or recover the lost funds.

There are a number of reasons why governmental agencies are trying to crack down on the prevalence of crypto-related crimes and fraud. Firstly, it is estimated that millions of dollars are lost annually to these scams. For many criminals, cryptocurrency represents a way to commit a crime that is less likely to be found out.

Within the industry, there is concern that the prevalence of fraud will soil cryptocurrency’s public image. Some members of the public already have a negative perception of cryptocurrency and having it repeatedly linked to crime only further soils its image.