Crypto scammers steal $1.2M using fake police reports

In a sophisticated cryptocurrency scam, fraudsters have stolen over $1.2 million from nine residents in Kent, England, by exploiting a data leak to create fake police reports.

The scammers used personal details from the leak to generate counterfeit reports through Action Fraud, the UK's national reporting center for fraud and cybercrime.

Posing as law enforcement, the scammers contacted victims, informing them that they were under investigation and would receive a call from a "crypto wallet host."

Subsequently, a second call from a supposed "security officer" coerced victims into sharing their crypto wallet seed phrases—a 12- or 24-word combination that allows access to cryptocurrency wallets.

With this information, the fraudsters were able to rebuild the wallets, steal funds, and transfer them in a way that makes recovery impossible.

Detective Sergeant Darryll Paulson warned residents against sharing personal details over the phone, emphasising that scammers often create a sense of urgency to deceive victims quickly.

"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," Paulson noted.

The incident highlights the growing sophistication of cryptocurrency scams and the importance of vigilance among crypto investors.

Kent Police have urged residents to report any suspicious activities without hesitation, emphasising that it only takes a moment of distraction to fall victim to such scams.

In response to these incidents, authorities are advising individuals to verify the authenticity of callers claiming to be from law enforcement or crypto services by hanging up and contacting official numbers after a few minutes.