Kent Police have issued a stark warning to residents after nine individuals collectively lost £1 million in cryptocurrency scams. Fraudsters exploited personal details leaked online to create fake Action Fraud reports, deceiving victims into revealing sensitive information and allowing criminals to steal their digital assets.
How the scam unfolded
According to Kent Police, scammers used information obtained from a data leak to generate false fraud reports under the name of Action Fraud, the UK’s official reporting centre for fraud and cybercrime.
Victims were then contacted by an individual posing as a police officer, who falsely reassured them that an investigation had been launched into fraudulent activity on their cryptocurrency accounts.
This fake officer then warned the victims to expect a call from their cryptocurrency wallet provider, supposedly as part of the investigation. Shortly afterwards, the victims received a second call from a person claiming to be a security officer from the wallet provider.
The role of seed phrases in the scam
During this second call, the so-called security officer requested the victims’ seed phrases—a unique 12- or 24-word phrase that grants access to a cryptocurrency wallet. This phrase is crucial for users to recover their wallets if they lose access.
Once fraudsters had obtained these details, they were able to rebuild the victims’ wallets, drain their funds, and transfer the stolen cryptocurrency, making recovery impossible.
Police urge public to stay vigilant
Detective Sergeant Darryll Paulson of Kent Police warned the public to be extremely cautious when approached by anyone claiming to be from a cryptocurrency platform or law enforcement.
“I urge anyone contacted by someone claiming to be from a crypto host, or from the police, not to give out any personal details.
Scammers are becoming increasingly more calculating in their methods, creating a false sense of urgency by telling victims they must act immediately to prevent their funds from being stolen.
Don’t be embarrassed about reporting a scam—it only takes a second to be distracted and fall victim.”
How to protect yourself from cryptocurrency scams
With the growing prevalence of cryptocurrency-related fraud, police have advised the public to follow these key precautions:
✅ Never share your seed phrase or private keys with anyone, regardless of who they claim to be. Legitimate organisations will never ask for this information.
✅ Verify the caller’s identity before engaging in any conversation. If someone claims to be a police officer or from a cryptocurrency platform, hang up and contact the organisation directly through an official website or helpline.
✅ Be wary of unsolicited calls and emails related to cryptocurrency investments or fraud investigations. Scammers often use pressure tactics to force victims into acting quickly.
✅ Wait at least five minutes before redialling if you suspect a scam call. This ensures that the previous call is fully disconnected from your line.
✅ Report any suspicious activity to the authorities. If you are unsure whether a call is legitimate, take the caller’s details, hang up, and contact 101 (or 999 in an emergency). Action Fraud can also be reached via their official website.
Rising threat of cryptocurrency fraud in the UK
Cryptocurrency scams have been on the rise in the UK, with fraudsters increasingly targeting investors through phishing attacks, fake exchanges, and impersonation schemes. The Financial Conduct Authority (FCA) has repeatedly warned consumers to remain cautious when investing in digital assets, particularly as fraudulent schemes become more sophisticated.
Authorities stress that the decentralised and anonymous nature of cryptocurrency transactions makes it difficult to trace stolen funds, reinforcing the importance of preventative measures.
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What to do if you have been scammed
If you suspect you have fallen victim to a cryptocurrency scam, take the following steps immediately:
1️⃣ Contact your cryptocurrency platform to see if they can freeze any transactions or assist with recovery.
2️⃣ Report the scam to Action Fraud via their official website or by calling 0300 123 2040.
3️⃣ Check if your personal details have been leaked online and take necessary precautions, such as changing passwords and enabling two-factor authentication.
4️⃣ Warn others to help prevent further scams in your community.
Kent Police continue to investigate the incidents and urge residents to stay alert. Anyone with information about cryptocurrency fraud is encouraged to come forward and report their concerns.
Final reminder: Think before you share
With criminals using increasingly sophisticated techniques to exploit victims, it is crucial to remain sceptical of unsolicited calls, messages, and emails. If something feels off, take a step back, verify the source, and never reveal sensitive information.
Fraudsters rely on deception and urgency to manipulate victims, but by staying informed and cautious, individuals can better protect themselves and their digital assets.
