Imagine the shock: Crypto scammers have managed to swindle over £1 million (that’s $1.2 million!) from nine people in Kent, England. The really scary part? They got in by exploiting personal details leaked in a data breach.

Just last month, on March 1st, Kent Police issued an urgent warning to everyone in the area: stay alert to crypto fraud! It turns out that criminals had already gotten their hands on Kent residents’ private data and were using it to create bogus reports, making them look like they were coming straight from Action Fraud, the UK’s official fraud reporting center.

As the police themselves explained, “These scammers took personal details from the data leak and twisted them to produce these fake Action Fraud reports.”

Here’s how the scam worked: First, the fraudsters whipped up these fake reports. Then, they pretended to be law enforcement, contacting their targets to deliver some alarming news. Victims were told they were under investigation and would soon get another call – this time, from their “crypto wallet host”.

How They Used Leaked Data to Create Phony Police Reports

Every single victim reported getting a second call. This time, it was a “security officer” on the line, who pressured them to hand over their crypto wallet seed phrases. Now, if you’re not sure what a seed phrase is, it’s essentially a secret 12- or 24-word code that unlocks your crypto wallet – like the ultimate key.

And with that seed phrase in hand, the police alert explained the devastating outcome: “These criminals could then rebuild the crypto wallet, drain all the funds, and move the money somewhere it could never be traced or recovered.”

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Detective Sergeant Darryll Paulson is urging everyone in Kent to be extra cautious: never, ever give out personal information over the phone to anyone claiming to be from the police or a crypto platform.

“Scammers are getting smarter all the time,” Sergeant Paulson warns. “They’re constantly finding new ways to trick people out of their money. And a classic tactic they use is creating a sense of urgency, making you feel like you have to act *right now* to prevent your funds from being stolen.”

Trying to Limit the Damage from the Data Breach

The sad reality is that in total, these nine victims lost over $1.2 million in this scam, all sparked by that initial data leak.

Sergeant Paulson also had a message for anyone else who might have been caught out by similar scams: Don’t be embarrassed to report it! He emphasized, “It only takes a split second to get distracted and become a victim.”

The golden rule for crypto investors? Never, ever share your seed phrase with anyone. Giving someone your seed phrase is like handing them the keys to your entire crypto vault – they can do whatever they want with your funds, including emptying it out completely.

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