In a major development, British Westminster Bank NatWest has come to the rescue of crypto investors. In order to protect investors from dubious crypto schemes and crypto scams, NatWest has launched an ‘urgent’ crypto scam alert for its mobile app users.
Users of the NatWest mobile app will be directed to a warning scheme in case of suspicious crypto projects. Besides, the alert also notifies account holders to make sure that they have direct control of the digital wallets that handle transactions. It asks the users to beware of projects that make promises of any outsized returns.
The bank noted that one of the most common crypto scams is a fake celebrity endorsement. Here, potential investors are asked to fill an online form and encouraged to set up a crypto wallet over a phone call. On the other side, the scammer installs remote access software on their device that grants them access as well.
The victims are then asked to make large deposits in the crypto wallets while the scammers liquidate all the funds at their end. Jason Costain, NatWest’s head of fraud prevention told BBC:
“We have prevented millions of pounds from being sent to crypto-criminals who are exploiting the high levels of interest in the currency. However, consumers should always be alert, especially to the use of fake websites and bogus celebrity endorsements”.
FCA Regulatory Check-Up
U.K’s topmost financial regulatory body – Financial Conduct Authority (FCA) – has created a list of such dubious and unauthorized firms. The FCA warns that people dealing with any of these firms will not be protected by the regulator.
The NatWest mobile app also warns users that while dealing with any crypto sellers, make sure that it registered with the FCA. With the recent surge in the crypto market this year, the number of scams has also skyrocketed simultaneously.
Regulators are on a run and hunting down projects that target gullible investors. Regulators worldwide have tightened up the working of different crypto firms requiring them to have due to AML and KYC checks of investors.