Warning over cryptocurrency scams after Jersey family loses life savings
A Jersey family have lost £200,000 after investing their life savings into what turned out to be a cryptocurrency scam.
They handed their details over online before being contacted by someone impersonating a financial advisor, who promised to double their money.
The scammer registered them onto a real crypto exchange platform, but when it came to withdrawing their funds the family were told they needed to pay various charges.
The victims were constantly pressured to borrow money from their loved ones and take out loans to invest more.
"These scammers are heartless," Jersey Police's investigating officer Faith Shalamon said.
"They ruin lives and we don’t want anyone else to get caught out by them."
Having invested £200,000, it is unlikely the family will see any of this money again.
The police added that the family blame themselves, and will probably struggle to overcome such an emotionally traumatic and distressing scam.
"It really is very hard sometimes to tell the fake from the real" - Matt Palmer, Head of Jersey's Cyber Emergency Response Team, talks to ITV News about online property scams
More than £600,000 has been lost to this type of fraud in Jersey over the past three months.
Victims of online frauds are often re-targeted by criminals who claim they can recover the money and charge an upfront fee.
Key tips to protect yourself from crypto scams:
Be wary of online adverts promising high returns for investing in crypto products. Spelling and grammar errors are usually a red flag. Fraudsters will go to great lengths to make a website or service look convincing. If something sounds too good to be true, it probably is.
Be suspicious if you are contacted out of the blue about an investment. Don't be rushed into investing. No legitimate company will pressure you into something on the spot. Take time to do your own research.
Always check the FCA Register to make sure you are dealing with a proper company and the FCA Warning List that shows firms to avoid. Only use the contact details listed on the FCA Register and look out for subtle differences as some scammers may try to impersonate legitimate companies.
Seek advice from trusted sources such as a financial advisor before making any big decisions. Even genuine investments can be high-risk.
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