Crypto Scammers Steal $1.2M from UK Residents in Sophisticated Scheme

Crypto scammers have stolen over $1.2 million from UK residents by exploiting a data leak and creating fake police reports. The incident, which occurred in Kent, England, involved nine victims who were targeted by fraudsters who gained access to their personal information.

The scammers used the leaked data to generate fake reports from Action Fraud, the UK's national reporting center for fraud and cybercrime. They then posed as law enforcement officers and contacted the victims, informing them that they were under investigation and would be receiving a call from the "crypto wallet host."

In a second call, the scammers, posing as security officers, coerced the victims into sharing their crypto wallet seed phrases. The seed phrases, which are 12 or 24-word combinations, allow access to a crypto wallet. With this information, the fraudsters were able to rebuild the wallet, steal the funds, and transfer them, making recovery impossible.

Kent Police has warned residents to be vigilant against ongoing cryptocurrency fraud attempts and not to share personal information over the phone with anyone claiming to be the police or a crypto host. Detective Sergeant Darryll Paulson emphasized that scammers are becoming increasingly sophisticated in their methods and may create a sense of urgency to pressure victims into acting quickly.

The total loss to the nine victims was over $1.2 million. Paulson urged other potential victims to report the scam without feeling embarrassed, as it only takes a moment of distraction to fall victim. Crypto investors are advised not to share their seed phrases with anyone, as doing so provides complete access to their funds and the ability to transfer or withdraw them at will.