The UK Financial Conduct Authority has sounded the alarm on a company called the Blockchain Recovery Association masquerading as a legal FCA licensed company.
The regulator informed on the rising incidents of cryptocurrency fraud in which cybercriminals carry out the so-called fishing attacks (sometimes called phishing attacks) under the disguise of licensed companies. One such case represents the Blockchain Recovery Association, whose initiators sent emails to and made phone calls to prospective investors. The delinquents pretended to be a branch of the real Gain Capital UK Limited company, that is allowed by the FCA to offer financial services.
To deceive people and obtain their confidence, the scammers made use of the register number of Gain Capital UK Limited. Utilizing the method of phishing, the perpetrators of the counterfeit scheme tried to obtain their passwords, private keys, and other private information from cryptocurrency users to establish control over their crypto assets.
The FCA affirmed that all companies and entities offering financial services in the UK should be licensed. Nonetheless, the Blockchain Recovery Association is currently not registered with the FCA and does not possess any permits. As it turned out, the founders of this firm presented an incorrect address of its headquarters and non-existing phone numbers.
The agency cautioned that lately, cryptocurrency scammers have started to utilize the data of firms with an FCA license, masquerading as employees of these legal organizations. Thus, the regulator warned cryptocurrency operators not to reveal their private information to anyone, and to verify whether the company they are involved with is present in the register of providers of financial services. This register records all legitimate entities and individuals who have obtained permission to provide their services.
We remind you that earlier this month information surfaced about the intentions of UK regulators to focus their attention on regulating the stablecoin trading in the country.
