The UK is home to hundreds of companies running crypto and forex scams

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The Bureau of Investigative Journalism (TBIJ) has identified 168 firms accused of running crypto scams or fraudulent trading in the UK forex market

Victims of scams are often approached via social media, dating sites and Whatsapp and convinced to invest in crypto trading platforms, 17 of which have been confirmed as ‘pig butcher’ scams, according to the TBIJ report .

Losses total $3.4 million, no sign of recovery

The scams totaled around $3.4 million ($2.8 million) in losses for victims scattered across the UK, US, Canada, Turkey, Germany and Poland.

According to the report, most of the 168 companies identified were registered at London addresses and had at least one Chinese director. Loopholes in the UK company registration system contribute to the scam as the UK is considered a place of trust.

Government preventive measures warned.

The UK government has pledged to “strengthen the rules, including the introduction of a requirement to verify information provided to Companies House”.

However, financial crime investigator Graham Barrow has warned that the reform is a welcome ‘step forward’ but the legislation could pose ‘significant loopholes’, including ambiguity surrounding identity verification ‘for persons using business service providers to register businesses on their behalf”.

Barrow said:

“We have known for at least 20 years that UK companies are used in these scams and that we are probably the biggest provider of scam companies in the world.”

Barrow described the UK’s inaction on crypto scams as a “dismal failure”, suggesting that more needs to be done to prevent such fraudulent activity, including verifying information provided to Companies House.

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