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UK government cracks down on crypto cold calls to combat fraud

TL;DR

  • The UK government has banned cold calls selling financial products, including insurance and cryptocurrencies, to tackle fraud.
  • The government plans to work with the telecoms regulator, the Office of Communications (Ofcom), to utilize new technology to counter phone number “spoofing.”

The UK government has banned cold calls selling financial products, including insurance and cryptocurrencies, to tackle fraud. However, fraud is estimated to cost the UK around £7 billion ($8.7 billion) annually. The government’s new fraud strategy involves creating 400 new jobs to modernize its approach to intelligence-led policing.

Collaboration with Ofcom to counter phone number spoofing

The government plans to work with the telecoms regulator, the Office of Communications (Ofcom), to utilize new technology to counter phone number “spoofing.” This would prevent fraudsters from impersonating legitimate UK phone numbers.

With wire fraud now the most prevalent crime in the UK, affecting 1 in 15 people, the government also aims to introduce laws requiring financial institutions to reimburse victims of authorized fraud.

A recent report highlights that organized crime syndicates use the UK as their operational base due to the region’s lenient regulations. Registering a company in the UK is cheap and requires no identification, making it easy for fraudulent companies to set up and gain false credibility.

FCA’s strict approach to crypto company registrations

According to the Financial Services and Markets Act rules for the digital assets market, the UK Financial Conduct Authority (FCA) requires all companies engaged in crypto asset activity to register with it.

However, the FCA’s strict approach to granting approvals has led to several crypto-related businesses operating as unregistered entities.

UK Prime Minister Rishi Sunak has expressed determination to fight scammers, stating they “ruin lives in seconds” and pledging to combat them wherever they attempt to hide.

The government also aims to end the methods like “SIM farms” commonly used by scammers to reach large numbers of people simultaneously and review the use of mass-texting services to prevent criminals from exploiting such technologies.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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