The Financial Conduct Authority (FCA), the British financial regulator, has said British investors lost about $34 million as a result of forex and cryptocurrency scams between 2018 and 2019, the Financial Times reported yesterday.
Data provided by Action Fraud, the UK's national information centre on fraud and cybercrime, suggests individual losses related to this type of scam rose from $76,000 to $18,500, while total losses declined by around $14 million.
However, the number of reports tripled to 1,834, and 81% of these reports are related to digital coins.
Based on this information, the FCA is considering to ban the trading of derivatives linked to high-risk assets such as cryptos to avoid this type of scam.
According to the regulator, scammers usually use social networks to attract potential victims.
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