Accountant loses £50,000 through WhatsApp Cryptocurrency Scam

Tracey was advised that the value of her initial £3,000 investment had risen to £30,000. However, she was told the only way she could access the funds and withdraw her money was by downloading the AnyDesk app. Software such as AnyDesk allows remote access and control of the technology in which it is installed.

Although the scammer assured Tracey that they could not access other information on her device, they proceeded to take out two bank loans using Tracey’s account, each worth £30,000. The scammer also increased her credit card and overdraft limits. Tracey watched her bank account “draining and draining”, including her daughter’s savings account worth £50,000. After taking the money, the female scammer disappeared.

Once she realised that she’d been scammed out of £52,000 through a mix of authorised loans and transfer of funds via the AnyDesk app, Tracey urgently contacted her bank. Whilst banks are obligated to protect customers against APP fraud by warning, detecting and preventing scams, Tracey’s bank and subsequently the Financial Ombudsman Service (FOS), a government backed scheme that resolves disputes between financial institutions and their customers, took the view that she had given the scammers permission to take her money by installing the remote access app.

Cryptocurrency is a form of digital currency which can be invested in or traded, like stocks and shares. In recent years, some people have considered cryptocurrencies such as Bitcoin, Litecoin and Ethereum as investment options, hoping for higher returns than they would expect from the stock market – particularly in times of political and financial uncertainty. In turn, this has encouraged opportunistic scammers to create realistic and elaborate crypto investment scams, as happened in Tracey’s case.

Some financial scams have common elements that everyone should be aware of. In recent years, there has been a significant rise in Authorised Push Payment (APP) Fraud, where victims are tricked through social engineering techniques into transferring funds from their bank accounts to the scammers. Common signs of a scam to look out for include:

• Unsolicited emails and messages using words such as “loophole” and “guaranteed returns” are likely to be lies. If something seems too good to be true, it usually is.
• Language that preys on vulnerabilities or creates a sense of urgency to the point that you feel rushed into making a decision. Legitimate financial institutions will never place time restrictions or pressure you to sign documents or provide important information.
• Legitimate financial companies will be registered with City watchdog, the Financial Conduct Authority (FCA). The FCA is the UK’s financial services regulator and must authorise all financial service activities.
• Unrecognisable phone numbers or links within emails and messages should always be treated cautiously. Use official apps and websites where possible, and if anything seems suspicious and you feel unsure, always ask friends and family for a second opinion.

The first step is always to contact your bank immediately and stop any further transactions.

Any suspected scamming activity should also be reported urgently to Action Fraud, the UK’s national reporting centre for fraud. If you have lost money, this may initiate a criminal investigation.

Another lifeline is making a claim to the Financial Ombudsman Service (FOS). TLW Solicitors has extensive experience of successfully handling FOS claims on behalf of our clients, even if the case was initially rejected. We understand the steps involved, time limits to follow, information required and appeals processes, ensuring your claim has the best chances of success.

New rules concerning APP fraud reimbursement were introduced on 7th October 2024, with the onus being placed on payment service providers such as banks to reimburse scam victims within five working days. However, not all cases are covered by the new rules and the compensation limit of £85,000 may not be appropriate.

Our specialist team will assess your case to see if your claim is likely to succeed. If you are eligible, we will work with you to progress your refund claims, whether that is direct through your bank or the Financial Ombudsman Service.

Sarah Spruce, Legal Director at TLW Solicitors, said of Tracey’s case:

“Anyone can be a victim of fraud, even professionals like accountant Tracey Watkins. This is because a whole range of pressure and emotional manipulation tactics are used to rush victims into making sometimes catastrophic financial decisions.

“Scams are getting more sophisticated by the day, targeting people on WhatsApp and social media platforms, where they give the appearance of having mutual friends to gain trust.

“Falling victim to these scams can not only leave individuals financially out of pocket but can also cause feelings of embarrassment and shame. We want to assure these fraud victims that they are not alone and, as this case demonstrates, anyone can fall prey to clever scammers.”