British financial administration (FCA) showed that fraudulent activity with Bitcoin and other cryptocurrencies cost an average of 14,600 pounds for each victim. In addition, the number of scammers in the UK has tripled over the last financial year.
The most common form of fraud was the use of social networking to advertising to lure unsuspecting people into a Ponzi scheme that promised to make the victims rich with quick profit. The total number of reports of fraud to relevant services amounted to 1800.
The greed and ignorance of investors stimulate Scam
Most of the fraudsters lured investors, instilling confidence that their first investment will bring good profit. This encouraged people out of greed to invest more, and then the scammers disappear with the money of investors. The FCA has pledged to increase transparency in the activities of these companies, thereby raising awareness of the General public. The office also plans to conduct promotional campaign to increase users ‘ knowledge of common fraud schemes on the Internet.
Mark Steward, Executive Director of the FCA’s enforcement and market surveillance said:
“We warn the public that should to be suspicious of advertising that promises a high return on platforms online trading”.
As the popularity of cryptocurrencies is growing, and their value increases, the number of fraud associated with them and Ponzi schemes also increases. The main reason for the increase in their numbers is a combination of ignorance and greed on the part of the customers because they are easy to manipulate with advertising that promises too profit to be true.
Consumers need to understand that scriptactive make a profit over time, but if something on the Internet promises to make you rich overnight – this is definitely a Scam.
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