Nine Kent cryptocurrency holders have lost more than £1 million in a “calculated” scam.
The victims’ personal information was shared online and used by criminals to generate fake Action Fraud reports following a data leak.
Police say once these reports were created, the victims were then contacted by someone claiming to be a police officer reassuring them an investigation had been launched.
The officer then told them to expect a call from the crypto wallet host.
A second call was then received from someone claiming to be a security officer asking the victim for their seed phrase which is a 12- or 24-word phrase allowing users to control a cryptocurrency wallet.
With that information, the fraudsters were able to rebuild the wallet, steal the funds and transfer them so that they can’t be recovered.
Detective Sergeant Darryll Paulson said: “I urge anyone contacted by someone claiming to be from a crypto host, or from the police, not to give out any personal details.
“Scammers are becoming increasingly more calculating in their methods to defraud their victims into losing a substantial amount of money and will often create urgency in the situation, such as telling them they need to act now to stop their funds from being stolen.
“Don’t be embarrassed about reporting a scam, it only takes a second to be distracted and fall victim.”