Fake Police Call Cryptocurrency Investors to Steal Their Funds

Have you received a phone call from police about your cryptocurrency wallet? Be on high alert - you could be about to fall victim to a devastating scam that has already netted nine people a combined £1 million. According to the Kent police force, scammers have been exploiting personal information of residents that was included in a data leak to create fake Action Fraud reports.

It's essential to note that Action Fraud is a legitimate organisation that acts as a national centre for collecting reports of fraud, scams, and cybercrime from individuals and companies in the UK. It works closely with police forces across England, Wales, and Northern Ireland to coordinate responses across the country. However, even this reputable organisation can be targeted by scammers who are determined to steal sensitive information.

Once the fake Action Fraud reports have been created, the scammers will contact their intended victims, impersonating police officers who inform them that an investigation has been launched into the alleged "fraud." The bogus police officers then tell their target that they should expect a call from the host of their cryptocurrency wallet. Some time later, a further phone call is received, claiming to come from a security officer, who asks the victim for information about their cryptocurrency account, including the seed phrase.

The seed phrase is a highly sensitive piece of information that controls access to your cryptocurrency wallet. It's a 12- or 24-word sequence of random words that stores the data required to access or recover funds in your wallet. Sharing this information with anyone is extremely hazardous because its complexity means there are billions of combinations, making brute-force attacks impractical. The scammers now have all the information they require to steal your cryptocurrency funds.

The impact of cryptocurrency scams can be devastating, not just financially but also emotionally. Victims can lose significant amounts of money, and are often frustrated that the anonymity and decentralisation of cryptocurrency make it a real challenge to trace and recover stolen funds. Detective Sergeant Darryll Paulson of Kent Police advises people to be vigilant:

"Make sure to always verify the identity of anyone contacting you who claims to be from law enforcement or a financial institution. A genuine police officer will not ask you to confirm sensitive information over the phone. If in doubt about somebody's legitimacy, Kent Police suggests that you ask to take their details and end the call. Then, wait for at least five minutes for the call to clear, and after that, call 101 or 999 in an emergency, where a call handler will be able to verify if the caller was genuine."

It's crucial to remember that legitimate police officers would never ask you to confirm sensitive information over the phone. If someone claims to be from law enforcement, always err on the side of caution and take their details before ending the call. By being vigilant and taking these precautions, you can protect yourself against these devastating cryptocurrency scams.