- An investment firm encouraged him to allocate part of his savings to crypto
- Legal experts helped him get back more than $95,000
Simon Hoadley lost the equivalent of $100,000 from his savings in a cryptocurrency scam. These scams are rising in the UK, but ultimately, his ending was a happy one. He managed to recover almost all of the funds he had lost.
The 66-year-old retired financial advisor was approached by an investment firm that encouraged him to allocate part of his savings to crypto assets. He was struggling and thought this might help improve his financial situation. At first, the investment seemed profitable, but things turned sour all of a sudden and he lost touch with his “advisor.”
His bank advised disclosure
Ultimately, Hoadley realized he had been cheated out of more than $100,000. His local bank advised him to share his story with the police, as they would have to be involved in recovery efforts. He also told his family about the scam.
Legal experts helped him get back more than $95,000 of his initial crypto-related losses. He bought a mobile home closer to the assisted living facility where his wife is accommodated.
Crypto fraud is massively underreported
Data from TRM Labs show 3,244 people reported fraud in 2019. Their total losses were GBP 55 million. The cases had almost tripled in 2021, reaching 9,427. The losses incurred were more than triple that year, amounting to GBP 190.5 million.
TRM Labs expect the trend to continue in 2022. Data is not complete for last year, but losses from January to August 2022 alone have exceeded GBP 160 million. They are expected to be around GBP 240 million for the whole year.
Investment scams like the one Hoadley fell victim to are the most common type of scams in the UK and the US. “Investment” firms approach people and ask them to make deposits in cryptocurrency. Other common scams include pig butchering, a romance scam, and drainware, where cybercriminals use concealed code to take control of a hot wallet and drain it of assets.
