Coscoin cryptocurrency fraud warning after North East victims lose more than £200,000
The North East Regional Organised Crime Unit has issued a warning to the public over the Coscoin cryptocurrency platform.
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Officers from the North East Regional Organised Crime Unit (NEROCU) have issued a warning to members of the public over Coscoin, a cryptocurrency investment platform.
Coscoin, which is also known as Cos or Cosetek, claims to be a platform where people can quickly double their investments.
However, people across the region and the country are reporting to the police that they have been unable to access or withdraw their money since the end of November.
NEROCU has confirmed that so far, 78 victims have come forward in the North East with a combined total loss of £214,869.
Officers have revealed that the average loss per victim sits at around £2,900.
The structure of the cryptocurrency platform, which is believed to be based in Washington in the US, appears to incentivise users to recruit others to the platform in what seems to be a Ponzi/Pyramid scheme.
NEROCU's Economic Crime Team have seen similar reports of different companies offering a similar product to Coscoin.
They are now reminding members of the public that all investments carry a degree of risk and that they shouldn't invest money that they can't afford to lose.
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Detective Inspector Paddy O’Keefe, leading the Economic Crime Team, said: “We’re urging people to be cautious in how and if they invest their money.
“There are those out there looking to exploit others and steal their hard-earned money to increase their illicit gains.
“When it comes to money, it might sound repetitive but, if it sounds to good to be true it probably is.
“Criminals will also create scams promising to recover investments so please avoid any instances where you could be victim to further frauds linked to your original loss.”
If you feel like you've been impacted by Coscoin, or something similar, then you are encouraged to report it to Action Fraud as soon as possible.