The Financial Conduct Authority (FCA) of the United Kingdom has warned customers to look out for crypto fraud connected with coronavirus. UK Financial Regulator Warns of Coronavirus Crypto Scams.
It also cautioned that the schemes in question may take several forms and could be related to insurance plans, stock transfers, or investing prospects with high yields, like crypto-asset investments.
According to the City of London’s National Fraud Intelligence Bureau (NFIB), fraudsters are now trying to manipulate the coronavirus pandemic with fake requests for bitcoin contributions to the WHO and the Centers for Disease Control and Prevention.
Of the 21 NFIB coronavirus fraud cases, only a handful have directly called users for bitcoin. No one actually complied. Many, non-crypto coronavirus attacks have, however, extorted over £800,000!
The FCA, UK’s top financial regulator, says scammers may be seeking to leverage the quickly spiralling global pandemic. It has affected around 460 U.K. Residents, and resulted in eight dead.
The alert came the same day that the World Health Organization (WHO) declared COVID-19 a globally affected pandemic of over 120,000.
Other regulatory departments have issued alerts on coronavirus investment fraud in Alabama, Oklahoma, Utah, and Washington, including the Securities and Exchange Commission and Malta.
The FCA stated that “during this interaction, we seek to make clear that companies must handle consumers equally and address the interests of those potentially impacted by the effects of coronavirus.”
FCA also mentioned that insurance firms would be in a position to explicitly identify any potential exclusions.