NatWest Cautions Investors Against Cryptocurrency Fraud

Summary

• NatWest has launched a cryptocurrency scam alert for its mobile app users that advises them against cryptocurrency scams.
• The bank is running an urgent cryptocurrency scam alert on the app that requests customers to be alert.
• A common way of scamming people is through fake celebrity endorsement.

NatWest Group Plc (LON: NGW) has launched a cryptocurrency scam alert for its mobile app users, advising them against scams in the much talked about currency of the present time.

The bank is running an urgent cryptocurrency scam alert on the app that requests customers to remain vigilant after a number of such frauds were reported between January and March this year. The alert comes up once a customer logs in, warning them to make sure of controlling any digital wallets directly, being used for transactions.

NatWest said that if a trader contacts a customer offering to help them invest in cryptocurrencies for huge profits, the account holder should know it is a scam. The bank said that if a wallet has not been set up by the customer himself or he is unable to access the money in their wallet, it would be a scam, and payments should be immediately stopped.

The shares of NatWest were up 0.97 per cent and were trading at GBX 207.90 on 28 May at 10:13 GMT+1. Meanwhile, the benchmark index, the FTSE 100 was up 0.18 per cent at 7,032.12.

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What is the major concern?

A common way of scamming people is through fake celebrity endorsement. Usually, a potential target investor is asked to fill an online form and asks over a call to set up a cryptocurrency wallet. The scammer would then install remote access software on the investor’s phone to set a cryptocurrency wallet without the investor’s knowledge but giving the scammer access to the device. The victim is then asked to put in larger amounts over a span of time, and eventually, the scammer empties the wallet.

NatWest has also advised that many cryptocurrency sellers were not registered with the Financial Conduct Authority (FCA). It said investors should use only firms on the FCA’s registered or temporary registered lists, which are available on the FCA website.

Also read: Seven Things to Know Before Investing Your Money in Cryptocurrencies

NatWest’s head of fraud prevention, Jason Costain, said that the bank managed to prevent millions of pounds from being stolen by the scammers who exploit the interest in digital currencies, but investors should be wary of celebrity endorsements and fake websites.

Crypto crackdown

Cryptocurrencies are extremely volatile in value. In this month alone, Bitcoin’s price fluctuated by 40 per cent which made some gain a lot as well as lose a lot. The trade is unregulated.

There have been too many advertisements around digital currencies on social media, prompting the Advertising Standards Authority on Wednesday to ban an irresponsible billboard ad that appeared on London transport for a cryptocurrency agency.

According to consumer protection officials, in the US, scammers have pretended to be Tesla boss Elon Musk and made money worth over $2m (£1.4m) in six months.

China’s vice-premier Liu Hu said the country would crackdown on illegal trading and severely punish shady financial activities. He also said he would crackdown on the mining and trading of bitcoins to prevent the country from going through financial risks.