Here’s how to keep yourself protected from the bitcoin bandits

Cyber criminals are increasingly exploiting interest in cryptocurrencies to scam speculators and prey on British pension pots, new research has revealed.

Crypto scammers have seen their returns nearly double in the last 12 months, according to cybersecurity company NordVPN.

Total losses from UK investment fraud involving fake digital currencies, websites, apps or funds has risen to more than £226million in the year to May 2022 – up from the £143million lost during the 12 months before that.

© Provided by This Is Money
Bitcoin bandits: Latest figures for reported fraud linked to digital currency scams show a 58% rise in money stolen year on year

This year, scammers have already made off with £118million, and currently pocket £36,250 per fraud.

As cryptocurrencies are not regulated by the UK’s Financial Conduct Authority, criminals are finding it easier to lure Britons to bogus investment and pension schemes with the promise of market-beating returns.

These fake schemes appear to have become more profitable for scammers despite much of the cryptocurrency market having slumped over the past six months.

The two biggest names, bitcoin and ethereum, are each down 48 per cent and 62 per cent respectively since the start of the year – as of 8 July.

However, while the amounts being stolen is rising steeply, this year’s data shows only a small increase in the number of incidents reported, suggesting criminals could be profiling victims to extract more from their…