• The Bureau of Investigative Journalism (TBIJ) has identified 168 companies accused of running crypto or fraudulent foreign exchange trading scams in the U.K.
• Victims of the scams have lost roughly $3.4 million (£2.8 million) and are scattered across the U.K., the U.S., Canada, Turkey, Germany, and Poland.
• The U.K. government has pledged to tighten the rules and verify information provided to Companies House to combat fraudulent activities.
The U.K. is home to hundreds of companies running crypto and forex scams, according to a report released by the Bureau of Investigative Journalism (TBIJ). The report identified 168 companies accused of running crypto or fraudulent foreign exchange trading scams in the U.K., resulting in losses of roughly $3.4 million (£2.8 million) from victims scattered across the U.K., the U.S., Canada, Turkey, Germany, and Poland.
The scams are often perpetuated via social media, dating websites, and Whatsapp, with victims being convinced to invest in crypto trading platforms. Of the 168 companies identified, 17 have been confirmed as „pig-butchering“ scams. Most of the companies are registered to London addresses and have at least one Chinese director, taking advantage of the U.K.’s reputation as a trustworthy location.
In response to the scams, the U.K. government has pledged to tighten the rules and introduce a requirement to verify information provided to Companies House. Financial crime investigator Graham Barrow welcomed the reform as a “step forward”, but warned of potential loopholes in the legislation. He stated that ambiguity surrounding ID verification, the ability to provide false addresses and insufficient penalties are some of the issues that need to be addressed.
The U.K. government is taking steps to combat the issue of crypto and forex scams, but victims of such scams have been warned to remain vigilant and to seek professional advice before making any investment decisions. It is important for investors to thoroughly research any potential investments and to be aware of the potential for fraudulent activity.