Residents have been urged by police to stay alert following a spate of cryptocurrency scams that saw nine individuals defrauded out of a total £1m.
According to police, the victims’ personal information was leaked online and subsequently used to create “fake Action Fraud reports”. Action Fraud serves as the UK’s national centre for reporting fraud and cybercrime. The victims were contacted by an individual posing as a police officer who assured them that an investigation was underway.
This fraudulent officer then informed the victims to anticipate a call from their “expect a call from the crypto wallet host”, which was followed by a second call from another imposter claiming to be a “a security officer”. This caller requested the victims’ seed phrase—a 12 or 24-word phrase that grants access to a cryptocurrency wallet. The scammers exploited this information to “rebuild the wallet”, steal funds, and transfer them beyond recovery.
The warning was issued to residents in Kent by police in the area. 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.”
He added: “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’re unsure whether a caller is a legitimate security or police officer, the police have advised to take their details and end the call. They recommend waiting at least five minutes for the call to disconnect before dialling 101 or 999 in an emergency situation. A call handler will then be able to confirm if the original caller was genuine.