Police are issuing a warning to North Wales residents after a spate of crypto scams.

North Wales Police and the Commissioner's Office have noticed a spike in fraudulent activity related to digital currencies, such as Bitcoin, with many residents having fallen victim to these scams.

Digital currencies, often referred to as cryptocurrencies, aren't supported by a central lender, like the Bank of England.

Instead, people trade their money with cryptocurrency dealers for digital tokens, which are then used to purchase goods and services.

While there are some legitimate opportunities to invest in cryptocurrencies, PC Jason Knowles of the North Wales Police Cyber Crime team estimates that he's seen approximately £6 million worth of losses in the cases he has investigated over his three-year tenure.

He explained how victims are regularly enticed to fraudulent websites searching for financial advice, providing contact information, and inevitably being approached with bogus investment opportunities over encrypted messaging platforms.

The fraudsters will often manipulate the victim's perception of authenticity by using number spoofing software and encouraging them to set up bank and cryptocurrency exchange accounts.

Victims are then coerced into purchasing specific cryptocurrencies and instructed where to transfer these assets.

These 'investment' sites are fronts for criminals to steal assets straight from their victim's digital wallets.

Victims often experience continual pressure to continue investing and are falsely warned of impending losses and potential profit risks.

These unsuspecting individuals are usually offered negligible returns as proof of an active investment, only to encourage further contributions.

Finally, once the victims realise they have been scammed, contact is cut off.

PC Knowles said: "In recent times, I have seen a rise in cryptocurrency-related fraud in North Wales and I am urging people to be on their guard and keep themselves safe from fraudsters who are after their money and want to take advantage of their interest in investing.

"I would say to all residents of North Wales, don’t invest what you aren’t willing to lose, do your own research, and double-check everything."

North Wales Police and Crime Commissioner, Andy Dunbobbin, said: "Making investments in cryptocurrency can seem an interesting and innovative way of making money.

"But people should be aware that among the legitimate traders, there may be fraudsters waiting to scam you."

There have been stark examples of victims falling prey to fraudulent schemes: a 78-year-old lost £346,000 over a year-long scam in 2022, and a 25-year-old in North Wales lost £8,000 this year after falling victim to an AI-powered 'deep fake' video of Sir Keir Starmer.

For more advice on how to stay safe from cryptocurrency fraud, visit: www.northwales.police.uk/advice/advice-and-information/fa/fraud/online-fraud/cyber-crime-fraud/