Cryptocurrency fraud: 78 North-east victims lose £214,869 after Coscoin scam

More than 70 people in the North-east have lost more than £214,000 combined in a cryptocurrency scam.

Cleveland Police says that it has been made aware a number of reports of fraud relating to a crypto trading service called Cosetek, also known as Cos or Coscoin. Coscoin is a platform that allows users to trade and invest cryptocurrency.

It is believed that it could be a Ponzi scheme – a form of fraud that pays existing investors with funds collected from new investors. The North East Regional Organised Crime Unit (NEROCU) has issued a warning after reports from people across the UK that they have been unable to access or withdraw their money since the end of November.

In the North-east, 78 victims have come forward with a total loss of £214,869 – with an average loss of £2.9K.

Detective Constable Dave Green from Cleveland Police’s Cyber Crime Team said: “We would always urge anyone investing in any platform to exercise caution and consider the risks involved before investing money.If something seems too good to be true it usually is. Criminals look to exploit others and steal their hard-earned cash so please be vigilant.”

If you have been the victim of fraud, visit Action Fraud or call 0300 123 2040.

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