National Trading Standards Releases Annual Consumer Harm Report: Crypto Investment Scams Are Highlighted As One Of The Five Main Threats
Today the National Trading Standards published the annual Consumer Harm Report.
Crypto enthusiasts should be aware of because, in the report’s ‘emerging threats’ section, crypto investment scams are highlighted as one of the five threats that both consumers and businesses should be aware of. Here are more details that are worth analyzing.
Crypto investment scams are on the rise
Bitcoin’s price has been fluctuating a lot and it even managed to hit a rock bottom this Monday, when it reached $6,350.
The past year has been plagued by a bearish trend that lingered over the market, and still, there has been an unprecedented interest in cryptos.
A lot of investors are attracted by the prospect of making money in a short period of time and chase the online ads which promise this. Sometimes, as highlighted in the report, even celebrities help promote such investment opportunities as well.
There have also been reports of people losing massive amounts of money after investing in crypto scams.
These work in various ways: some can steal your bank details and other have more complex mechanisms involving stealing crypto from your digital wallet.
Louise Baxter from the National Trading Standards Scams Team says:
“Many people are aware of the dangers of scam mail – cryptocurrency scams are often just a new version of this for the digital age. Adverts for dodgy cryptocurrencies are distributed en masse using Google and social media adverts but when people reply hoping to invest and get rich quick they actually find themselves walking into a trap which will see them lose their money.”
Baxter advises anyone who is interested in crypto to exercise with extreme caution because the cryptosphere is a highly dangerous place due to more and more scams that lurk here.
Record prison sentences for scammers
The National Trading Standards’ annual Consumer Harm Report reveals more consumer detriment prevented and record prison sentences were handed down.
The report also highlights new and emerging threats facing consumers and businesses.
The NTS managed to secure over 100 criminal convictions and a total of 230 years of prison sentences, according to the latest figures coming from the report.
This is a record in terms of length of prison sentences that have been handed down.
The same report also highlights that the NTS managed to prevent “more than £182 million of losses to consumers and business in 2017/18, a rise of more than a third compared to the previous year.”
Consumers are advised to remain vigilant
The Consumer Harm Report warns consumers and businesses to remain vigilant and be aware of new threats that could hit. these include the following.
- Growing fake modeling scams on social media
- Rising number of counterfeit and unsafe goods arriving from China and the Far East
- Criminals preparing for Euro 2020 with fake ads and counterfeit merch
- Risky crypto investment scams
- Sale of illegal skin lightening creams
As you can see, crypto related scams are one of the five threats that consumers and businesses should become aware of.
Lord Toby Harris, Chair of National Trading Standards, said: “The Consumer Harm Report clearly demonstrates the success National Trading Standards has had in protecting consumers and tackling criminal activity in the last year. Our work securing 100 convictions and 230 years of prison sentences send a very clear message that these crimes are taken extremely seriously and we will not stop in our efforts to bring criminals to justice.”
The report also highlights that the threats are constantly evolving and high caution is required.
NTS provides leadership influence, support, and resources in order to help combat consumer and business detriment locally, regionally and nationally.
For more information feel free to head over to NTS’s official website here.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.