Police have issued an urgent fraud alert after cryptocurrency scammers swindled nine individuals out of a combined £1 million through a sophisticated scheme exploiting leaked personal data.
According to Kent Police, the fraudsters gained access to victims’ personal details following a data breach and used this information to generate “fake Action Fraud reports.” Action Fraud is the UK’s national fraud and cybercrime reporting centre.
The criminals then impersonated police officers, contacting victims to inform them that an investigation had been launched into their case. In an attempt to gain trust, the fake officers told the victims to expect a call from their cryptocurrency wallet provider.
Subsequently, the victims received a second call from someone claiming to be a “security officer” from the crypto platform. This individual then asked for their seed phrase – a 12 or 24-word passphrase that grants full access to a cryptocurrency wallet.
Once obtained, the fraudsters used the seed phrase to reconstruct the victims’ wallets, ultimately draining the funds and transferring them beyond recovery.
Detective Sergeant Darryll Paulson urged the public to be wary of such tactics.
“I urge anyone contacted by someone claiming to be from a crypto host, or from the police, not to give out any personal details,” Paulson said.
“Scammers are becoming increasingly more calculating in their methods to defraud their victims into losing a substantial amount of money and will often create urgency in the situation, such as telling them they need to act now to stop their funds from being stolen.”
He further encouraged individuals not to feel ashamed about falling victim to such scams.
“Don’t be embarrassed about reporting a scam, it only takes a second to be distracted and fall victim,” he added.
Police have advised the public to verify the authenticity of any caller claiming to be from law enforcement or a financial institution. If uncertain, individuals should take the caller’s details and hang up immediately. Officers also recommended waiting at least five minutes to ensure the line is clear before contacting the non-emergency police number 101, or 999 in urgent cases.
Authorities continue to investigate the scam and are urging anyone with information to come forward. The warning comes amid a rise in cyber-related financial crimes, highlighting the need for increased vigilance in protecting sensitive financial data.
