How UK Police Are Struggling to Combat Crypto Crimes

Fraud Victim Claims UK Agency Inadequate in Handling Crypto Crimes

A British resident, who wishes to remain anonymous, has voiced concerns about the National Fraud Intelligence Bureau (NFIB) of the United Kingdom’s ability to handle crypto-related crimes. The victim, known as Martin, lost approximately $46,000 worth of crypto to a scammer posing as a Ledger employee. Despite reporting the fraud to the NFIB, Martin claims that the agency failed to take effective action in retrieving his stolen funds.

Martin’s encounter with the scammer began on September 28, 2023, when he received a phone call from someone claiming to be a representative from Ledger. The fake representative convinced him that his crypto was at risk of being stolen by a hacker and that he needed to upgrade his Ledger device to “security level 3.” However, the steps required for this upgrade turned out to be providing the scammer with his crypto addresses (sent through text) and confirming transactions to transfer his funds to the scammer.

In total, the scammer was able to steal 0.93 Bitcoin (BTC) (worth approximately $40,000 at the time) and 4,000 RNDR ($6,080) from Martin.

The Intersection of AI and Fake Scams

The rise of artificial intelligence (AI) has also brought about an increase in fake scams. One example is the recent case of a scammer posing as an LG representative, offering to update a user’s webOS 2.0 to 3.0 or 4.0. However, this was just a ploy to steal sensitive information from unsuspecting victims. It is important to be cautious and verify the legitimacy of any offers or updates claiming to be related to AI technology.

Exploring the Possibilities of Web 3.0 and Blockchain

With the emergence of blockchain technology, the concept of Web 3.0 has gained traction. This new version of the internet promises a decentralized and more secure online experience. Some even believe that Web 3.0 has the potential to revolutionize the way we make money. However, it is important to note that Web 3.0 is still in its early stages, and whether it truly exists or not is still up for debate.

Fraudster Exploits Victim’s Trust and Transfers Crypto to Gambling Platform

A scammer convinced a victim to transfer their cryptocurrency to their address, only to make a traceable transaction to a centralized gambling platform, Roobet. This platform, located in Curacao, has the ability to freeze the funds, potentially leaving the victim with no way to access their money. The transaction history shows that the funds were first sent to Binance, where they were exchanged for Ether (ETH) before ultimately being transferred to Roobet.

To prevent the funds from being cashed out, the fraudster needed Roobet’s cooperation. However, when the victim contacted Roobet, they were informed that they could not freeze the funds without an official request from their local law enforcement agency.

Victim Reports Fraud, But Receives Delayed Response from Law Enforcement

The victim, known as Martin, submitted a report through the City of London’s Action Fraud reporting tool, which would then be forwarded to the NFIB. However, it took nearly a month for the agency to reply to the report, on October 17, 2023. When they finally did respond, they stated that they were unable to pursue any leads in the case.

Martin also reached out to Binance, where a representative informed him that the attacker had laundered some of the stolen funds through their exchange. However, by the time Martin contacted them, the funds had already been transferred out of Binance. The representative assured him that Binance was willing to cooperate with law enforcement.

Funding Frozen: Crypto Fraud Victim Turns to AI and Web 3.0 for Help

After being unsuccessful in freezing the stolen funds on his own, Martin took matters into his own hands and paid $1,000 to the blockchain analytics platform AML Bot for assistance. He hoped that a report from the platform, powered by AI, would finally prompt the police to take action. On November 2, 2023, AML Bot released a report confirming that the stolen funds had indeed been sent to Roobet.

Martin then updated his report with the City of London’s Action Fraud reporting service. However, despite his efforts, he claims that the city has yet to respond to his update, even as of January 30.

Providing evidence to support his story, Martin shared documents such as his initial complaint, an email from the NFIB, correspondence with Roobet, transcripts of phone calls with the scammers, and more.

According to Martin, he is not the only victim of crypto fraud who has faced this issue. He pointed out that the reporting form offered by Action Fraud does not have designated spaces for crypto addresses or transaction hashes, making it difficult to report these crimes. To overcome this, he had to enter the addresses into spaces intended for suspect descriptions.

Martin is not the sole U.K. resident expressing dissatisfaction with the inadequate policing of fraud. According to a report from April 2019, U.K. police forces are providing inconsistent oversight of fraud allegations. Another report suggests that despite making up 40% of all crimes, fraud cases only receive 2% of police funding.

Cointelegraph attempted to contact the NFIB for comment, but did not receive a response before publication.