Fraud warning after £1m lost in cryptocurrency scams

Police have warned Kent residents to be vigilant about fraud after nine people lost a combined £1 million in cryptocurrency scams.

Victims’ personal details were shared online after a data leak, Kent Police said, and their information was used to generate “fake Action Fraud reports”.

Action Fraud is the UK’s national reporting centre for fraud and cyber crime.

Someone claiming to be a police officer contacted victims and reassured them an investigation had been launched, the force said.

The fake officer told victims to “expect a call from the crypto wallet host” and they then received a second call from a person who said they were “a security officer”, police added.

This caller reportedly asked for the victims’ seed phrase – a 12 or 24-word phrase that allows users to manage a cryptocurrency wallet.

Fraudsters used that information to “rebuild the wallet”, steal funds and transfer them so they cannot be recovered, police said.

Detective Sergeant Darryll Paulson said: “I urge anyone contacted by someone claiming to be from a crypto host, or from the police, not to give out any personal details.

“Scammers are becoming increasingly more calculating in their methods to defraud their victims into losing a substantial amount of money and will often create urgency in the situation, such as telling them they need to act now to stop their funds from being stolen.

“Don’t be embarrassed about reporting a scam, it only takes a second to be distracted and fall victim.”

If you are not confident a caller is a genuine security or police officer then take their details and hang up, police advised.

Wait at least five minutes for the call to clear before contacting 101 or 999 in an emergency, they said.

A call handler can verify if the caller is genuine.