Millions of pounds have been lost to cryptocurrency scams in north Wales in the last three years.
That is according to PC Jason Knowles of North Wales Police’s Cyber Crime, who is urging members of the public to be on their guard after a rise in cryptocurrency-related fraud and scams in the area.
Cryptocurrency has become increasingly well-known in recent years, for example under the name Bitcoin.
It’s a form of digital currency that functions online and doesn’t have the support of a central bank or lender of last resort, such as the Bank of England.
People exchange their money with cryptocurrency dealers for virtual tokens that they can spend on goods and services.
While some cryptocurrency investment vehicles are legitimate, some are not.
In 2024, a North Wales victim, aged 25, reported a loss of £8,000 after seeing a video of Sir Keir Starmer on their phone’s news feed encouraging them to invest in cryptocurrency.
The victim at the time didn’t realise that this was an Artificial Intelligence ‘deep fake’ video and invested their funds after being encouraged to do so via encrypted messaging chats with the suspect, posing as an investment advisor.
The male converted their funds to cryptocurrency and sent them to another account address.
In another instance a 78-year-old reported losses of £346,000 in 2022 after falling victim to a year-long cryptocurrency investment scam.
The victim, who, wished to invest their savings and make maximum returns, noticed a Facebook advert featuring a well-known investment and money expert advising that they should buy cryptocurrency, specifically Bitcoin.
They provided their contact information and were soon contacted via the suspect using the encrypted messaging applications.
Next, they were encouraged to set up third party internet bank accounts and cryptocurrency exchange accounts, sharing their passport, driving licence and photograph with the suspect who set up the accounts for them.
The suspect encouraged the victim to make transfers from their bank to the third-party accounts that they now control.
The banks called the victim to query these unusual transactions, however they were already been provided a scripted response by the suspect to reduce the bank’s suspicions. The victim’s funds were then converted to cryptocurrency where they were sent to various wallet addresses.
Some money was eventually recovered but the majority was lost to fraudsters.
These two cases are not unique, with PC Jason Knowles stating that the North Wales Police’s Cyber Crime team has seen approximately £6 million of loss among cases he’s investigated in the three years since joining the team.
According to PC Knowles, investments in cryptocurrency are often made by victims wanting to increase their net worth.
They may search for terms like ‘how to invest my money’, leading them to a fake website where they had over their contact information.
Usually, within 24 hours or less they are contacted via WhatsApp or more commonly Telegram/Signal encrypted messaging applications to discuss fake investment opportunities.
Number spoofing software is often used to trick victims into believing that landline numbers are calling them, when these calls are wholly internet based.
Third party internet-based bank accounts are often set up by victims, which once funded by direct mainstream bank deposits, seamlessly allow the funding of cryptocurrency exchange accounts.
Suspects provide victims with information about what crypto assets to buy and where to send them. Victims are given access to fake investment websites. They are usually bogus and it means the victims have sent their crypto assets to a suspect wallet address, lining the fraudsters’ pockets.
Once realising their mistakes victims are cut off from contact with the suspect, who will often at a later date contact them again under the premise of a recovery agent, who has found their investments stuck in the Blockchain wallet addresses. This does not happen and is a further scam.
PC Jason Knowles, Crypto Lead, Economic Crime Unit, North Wales Police commented: “In recent times, I have seen a rise in cryptocurrency-related fraud in North Wales and I am urging people to be on their guard and keep themselves safe from fraudsters who are after their money and want to take advantage of their interest in investing.
“I would say to all residents of North Wales, don’t invest what you aren’t willing to lose, do you own research, and double check everything.”
North Wales Police and Crime Commissioner Andy Dunbobbin added: “Making investments in cryptocurrency can seem an interesting and innovative way of making money.
“But people should be aware that among the legitimate traders, there may be fraudsters waiting to scam you.
“As PCC for North Wales, a key priority of mine is supporting victims and communities and ensuring they remain free from crime.
“Given my professional background in IT, I am also conscious of the potential of the online world to harbour dangers for people, especially in terms of financial fraud.
“I would ask everyone to follow the advice of North Wales Police and to invest safely and confidently.”
Spotted something? Got a story? Email [email protected]