A ‘worrying’ surge in cryptocurrency scams falsely claiming to be endorsed by celebrities such as Prince Harry and Meghan Markle has been reported by a major high street bank.
On average, people lost £11,872 to this type of scam in the first quarter of this year, Santander UK said.
Based on the current growth in these frauds, Santander is expecting to see an 87 per cent increase in cases in 2022, compared to last year.
Chris Ainsley, head of fraud risk management, Santander UK, said: ‘We’re seeing a worrying rise in ‘celebrity-endorsed’ cryptocurrency scams, where familiar faces are being misused on social media in order to con people out of often life-changing sums of money.
‘Rather than revelling in the promised high returns, people are losing significant sums after being duped by these highly sophisticated criminals.
‘Always do your homework and thoroughly research any investment opportunity before moving any money – irrespective of who is endorsing it.’
One of the fake headlines reads: ‘People earning millions from home by using Harry and Meghan latest advice’
A site called Exercise Tips advertised an investment scheme featuring a picture of Holly Willoughby in a bid to make the scam appear more genuine
One of the fake headlines read: ‘People earning millions from home by using Harry and Meghan latest advice’
In January, a cryptocurrency scam was reported which falsely claimed to be endorsed by Prince Harry and Meghan Markle.
Fabricated interviews, as well as photos of the Duke and Duchess of Sussex, were used in online articles falsely claiming the couple have backed schemes related to Bitcoin and cryptocurrency trading.
One of the fake headlines read: ‘People earning millions from home by using Harry and Meghan latest advice.’
The couple are among a string of celebrities – including Bill Gates, Sir Richard Branson, Mark Zuckerberg and singer Ed Sheeran – being misused in get-rich-quick scams, according to the Financial Conduct Authority.
Other well known names include This Morning hosts Holly Willoughby and Phillip Schofield and Moneysavingexpert’s Martin Lewis, who have been attributed with false quotes advertising the trading schemes.
In Australia, home-grown stars such as Chris Hemsworth have been subjected to fraudulent claims that they’re endorsing cryptocurrency investment schemes
Well-known names include This Morning hosts Holly Willoughby (right) and Phillip Schofield (left) and Moneysavingexpert’s Martin Lewis, have been attributed with false quotes advertising trading schemes
A Facebook user under the name Mister Flapjack used a picture of Holly Willoughby with a counterfeit quote that read: ‘My mother was truly worried, even though I kept on telling he that this i actually good for me’
A site called Exercise Tips advertised an investment scheme featuring a picture of Holly Willoughby in a bid to make the scam appear more genuine.
Elsewhere, a Facebook user under the name Mister Flapjack used a picture of Willoughby with a counterfeit quote that read: ‘My mother was truly worried, even though I kept on telling he[sic] that this i[sic] actually good for me.’
Fabricated statements from Dragons’ Den investors are also often used by fraudsters to dupe victims into handing over money.
In Australia, home-grown stars such as Nicole Kidman, Chris Hemsworth and Celeste Barber have been subjected to fraudulent claims they’re endorsing cryptocurrency – with one Sydney man reported to have lost $100,000.
Scams may involve people seeing a celebrity appearing to be advertising cryptocurrency online, or they may be introduced via another social media user to a crypto ‘investment opportunity’, which appears to be endorsed by someone famous.
Fraudsters use fake celebrity endorsements to push investment scams, including this one of Ed Sheeran – which invented a false story of Sheeran endorsing cryptocurrency on the Graham Norton Show
The customer clicks on a link and shares their contact details to find out more.
They are then contacted by phone, email or social media, and offered high returns with ‘little or no risk’. Fraudsters often use high-pressure sales tactics.
They are told to download specialist software to support them opening cryptocurrency accounts. The software is remote access software, giving the fraudster full access to the customer’s computer.
The customer opens cryptocurrency accounts and deposits money in them.
The fraudster then freezes access, and takes over the customer’s account, leaving the victim unable to access their money.
Commander Clinton Blackburn, from the City of London Police, said: ‘Celebrity endorsements are just one way criminals can promote bogus schemes online.
‘People should not be fooled by images of luxury items such as expensive watches and cars, and posts on social media showing extravagant lifestyles, which are often used to persuade you to invest.’
Santander said anyone who has been the victim of a crypto scam should report it to their bank immediately.
Victims of cryptocurrency scams are typically told to download specialist software in order to open a new account. The software is remote access software, giving the fraudster full access to the customer’s computer
Fabricated interviews with Prince Harry and Meghan Markle have been used to swindle people out of their hard earned cash
If customers have downloaded software to supposedly help with the investment, they should turn off and unplug their computer and not use it until they have removed the software and had it checked by a computer technician.
The bank is reminding people that just because an investment relating to cryptocurrency appears to be endorsed by a celebrity, this does not mean it is a genuine endorsement or a legitimate investment.
It said people should avoid uninvited investment offers, whether made on social media or over the phone.
They should also use the Financial Conduct Authority (FCA) website to look up the company and check they are a legitimate registered firm, not unregistered, or a clone or fake.
The FCA has ScamSmart – an online tool to help people identify whether an investment is a scam.
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