City of London Police arrest man over crypto currency scam

Maria Nikolova

The arrest was made after a number of reports by victims of the scheme were filed with Action Fraud, the national fraud and cyber crime reporting service.

The City of London Police have acted to dismantle a crypto currency scam. On August 10, 2017, Detectives from the City of London Police’s Fraud Squad arrested a man, on suspicion of conspiracy to defraud and money laundering.

The man is thought to be part of a group which allegedly set-up a ‘boiler room’ on Old Broad Street (EC2). The salespeople engaged in the fraudulent enterprise made phone calls to persuade people to invest in a crypto currency. The announcement by the City police says that the crypto currency in question “does not exist and is therefore worthless”.

The investigation into the fraudulent scheme started after reports were made to Action Fraud, the national fraud and cyber crime reporting service.

City of London Police Detective Inspector Mark Forster commented:

“These people often base themselves in the City as they believe having an address in a prestigious financial district will help to legitimise their fraud.”

The arrest happens as investment fraud continues to plague the UK. According to a recent analysis by Which? based on data from Action Fraud for 2014-16, Surrey is Britain’s investment fraud hotspot. Surrey saw the highest number of incidents of financial investment fraud, with 2.1 reports per 10,000 people, against an average of 1.3, the data shows.

According to numbers from Action Fraud, there were 264,204 fraud cases reported in 2016, that is up 10.7% on 2015 levels. However, not all fraud cases are reported to Action Fraud. A survey by the Office for National Statistics (ONS) suggests there may be as many as 5.4 million fraud and computer misuse cases every year.

In May this year, the City of London Police reiterated their concerns about the growth of binary options fraud. The tactics used by binary options fraudsters have evolved, with these scammers often abusing the names of famous people and businesses to attract clients. Sir Richard Branson, Virgin Group founder, has warned that criminals are misusing his name and that of his companies to lure people into buying fake investments.

Read this next

Retail FX

Financial Commission adds Ultima Markets to membership roster

Multi-asset brokerage firm Ultima Markets, operating under the trading name Ultima Markets Ltd, has been granted membership of the Financial Commission, marking the most recent inclusion into the ranks of the self-regulatory organization.

Digital Assets

Bitcoin hits fresh record high amid massive short squeeze

Bitcoin has surged to record highs against both the euro and the pound, hitting €60,447 and £51,736 respectively on Coinbase. The primary cryptocurrency has seen an almost 7% increase in the past 24 hours.

Digital Assets

US court rules crypto trades as securities in Coinbase case

A US court ruled that trading crypto assets on platforms like Coinbase constitutes securities transactions.

Market News

Weekly Data: Oil and Gold: Brief Review before the NFP

This preview of weekly data looks at USOIL and XAUUSD where economic data coming up later this week are the main market drivers for the near short-term outlook.

Institutional FX

FXSpotStream reports lower volumes for February 2024

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for February 2024, which moved lower on a monthly basis.

Fundamental Analysis

Global FX Market Summary: EUR, USD, Gold March 4th,2024

US Dollar Weakness: The US Dollar (USD) is currently struggling to gain strength due to a combination of factors.

Technical Analysis

Bitcoin Technical Analysis Report 4 March, 2024

Bitcoin cryptocurrency can be expected to rise further toward the next resistance level 69000.00 (former multiyear high from January)

Opinion

Finding Opportunity in Challenge: Why New Regulations Offer a Chance For Business to Get on Top of Data Management

The combination of CESOP, PSD3 and the PSR, has put businesses under new pressures. In this engaging article, André Casterman, Senior Advisor at Intix provides invaluable guidance on how companies can stay ahead of the curve.

Institutional FX

Finalto launches Prime of Prime offering on LSEG’s FX Matching venue

“By combining our expertise in Prime of Prime services with LSEG’s robust trading platform, we aim to empower clients with the tools and resources needed to navigate the FX market with confidence.”

<