Nearly £200m lost to fraud in British forex markets, crypto and more

Steve Miley

forex market with British flag and down arrow Official figures out of Britain show that a sum of around £197 million pounds was lost in the country last year as a result of investment scams.

According to a statement from the Financial Conduct Authority and Action Fraud, there was a distinctive shift towards internet-based scamming as the year went on, and that old fashioned scam artist techniques were going out of practice.

Whereas scammers may have once used telephone calls to persuade people to part with their cash, it’s now more and more common for internet-oriented methods, such as scam emails, to be used instead.

According to one statistic released, well over half of those who went to the FCA to check its directory of potential scammers in 2018 were doing so after having spoken to a scammer on the internet.

The exact figure, 54%, was up from 45% the year before.

The figures were also broken down to the level of individual averages. It is believed that on average each victim lost £29,000.

It is also believed that the asset classes in question are changing, and that certain ones are becoming more and more over-represented in the scam field.

Foreign exchange market fraud and cryptocurrency fraud came into particular focus, and when the impacts of share and bond fraud were added in, it was calculated that the three types were responsible for around 85% of schemes believed to be investment scams.

In a statement, Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, said that the organisation needed to publish almost 400 warnings about firms which posed a fraud risk over last year.

“Investment scams are becoming more and more sophisticated and fraudsters are using fake credentials to make themselves look legitimate”, he said.

“The FCA is working harder than ever to help protect the public against this threat. Last year we published over 360 warnings about potentially fraudulent firms. And we want to spread the message so we can all better protect ourselves from investment scams.”

Pauline Smith, Director of Action Fraud, added that there was a knock-on effect on the “wellbeing” of victims of investment scams.

“These statistics show that investment fraud is a major threat, with fraudsters doing everything they can to manipulate potential victims into making investments”, she said.

“Victims are often coerced or persuaded into parting with significant amounts of money and this can have a devastating impact on their wellbeing and finances”, she added.

This study is not the first to reveal the risks of internet fraud in the UK’s forex and crypto markets.

Around this time last year, Action Fraud released a statement outlining just how common so-called binary options fraud – which often focuses on forex and crypto – was.

It is believed, for example, that investors lose on average £87,410 per day as a result of this kind of fraud.

“Before investing, check the FCA Register to see if the firm or individual you are dealing with is authorised and check the FCA Warning List of firms to avoid”, Action Fraud advised at the time.


Steve Miley

Latest news

GBP/USD stuck at 1.31 for the week?
Sterling seems destined to remain close to the 1. Read more
GBPJPY Daily – Are GBPJPY bulls here to stay
Written on 03/08/2020 by Theunis Kruger, FX Trainer at FXTM A possible bullish scenario was observed on July the 20th in the GBPJPY currency pair on the D1 time-frame. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2012 Global CFD and FX broker
Number One Broker
Best FOREX BROKER Visit broker
5
#2 Forex Broker Pepperstone LogoYour capital is at risk Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
5
#3 Plus500 Logo80.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008 Global CFD Broker
Number One Broker
Best Trading App Visit broker
5
#4 Your capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
5
#5 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
5

    Forex Fraud Certified Brokers

    iTrader Logo
    Exness Small Logo
    XM Logo
    XTB Logo
    IQ Option Logo
    ATFX Logo
    Oanda Small Logo
    VantageFX Small Logo
    OctaFX Logo
    FXTM Logo
    LegacyFX Small Logo
    Swissquote logo
    skilling logo
    BlackBull Markets Small Logo
    Pepperstone
    HYCM Logo
    Forex.com Logo