The UK Financial Conduct Authority (FCA) has reported on a firm called the Blockchain Recovery Association posing as a legitimate company with an FCA license.
The regulator reported on the increased incidence of cryptocurrency fraud, when cybercriminals carry out phishing attacks under the guise of the names of licensed companies. One such scheme was the Blockchain Recovery Association, whose founders sent emails to potential investors and also made cold calls. The cybercriminals pretended to be a division of the real company Gain Capital UK Limited, which was authorized by the FCA to provide financial services.
To mislead people and gain confidence in them, the scammers used the registration number of Gain Capital UK Limited. With the help of phishing, the organizers of the fraudulent scheme tried to get their passwords, private keys and other confidential information from cryptocurrency users in order to take possession of their cryptoassets.
The FCA stated that all firms and individuals providing financial services in the UK must be licensed to do so. However, the Blockchain Recovery Association is not registered with the FCA and does not hold any licenses. It turned out that the founders of this company indicated an inaccurate address of its location and non-existent phone numbers.
The agency warned that recently, cryptocurrency scammers have begun to use the data of firms that have received an FCA license, posing as employees of legally operating organizations. Therefore, the regulator advised cryptocurrency users not to disclose their personal information to anyone, and to check whether the company they are interested in is actually entered in the register of financial services. This register lists all legal entities and individuals who have received permission from the FCA.
Recall that at the beginning of the year, the British regulator warned about the risks of investing in cryptocurrencies due to their high volatility and an increase in the number of cryptocurrency pyramids.
