Prime

<p>The UK government has banned cold calls selling financial products, including insurance and cryptocurrencies, to tackle fraud. However, fraud is <a href="https://www.nationalcrimeagency.gov.uk/what-we-do/crime-threats/fraud-and-economic-crime" rel="nofollow noopener" target="_blank">estimated</a> to cost the UK around £7 billion ($8.7 billion) annually. The government&#8217;s new fraud strategy involves creating 400 new jobs to modernize its approach to intelligence-led policing.</p>



<h2 id="collaboration-with-ofcom-to-counter-phone-number-spoofing">Collaboration with Ofcom to counter phone number spoofing</h2>



<p>The government plans to work with the telecoms regulator, the Office of Communications (Ofcom), to utilize new technology to counter phone number &#8220;spoofing.&#8221; This would prevent fraudsters from impersonating legitimate UK phone numbers. </p>



<p>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.</p>



<p>A recent report highlights that organized crime syndicates use the UK as their operational base due to the region&#8217;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.</p>



<h2 id="fca-8217-s-strict-approach-to-crypto-company-registrations">FCA&#8217;s strict approach to crypto company registrations</h2>



<p>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. </p>



<p>However, the FCA&#8217;s strict approach to granting approvals has led to several crypto-related businesses operating as unregistered entities.</p>



<p>UK Prime Minister Rishi Sunak has expressed determination to fight scammers, stating they &#8220;ruin lives in seconds&#8221; and pledging to combat them wherever they attempt to hide. </p>



<p>The government also aims to end the methods like &#8220;SIM farms&#8221; 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.</p>

UK government cracks down on crypto cold calls to combat fraud

Table of Contents

Cryptopolitan_News

Other articles published on May 3, 2023

Launchpool and Unizen Announce a Strategic Partnership

Bitcoin Trader Predicts Alt Season Between Dec 2023 and May 2024

ThunderCore’s Commitment to Blockchain Technology Shines at ETH Taipei 2023

White House Considering Punitive Tax Measures for Crypto Mining Industry

SUI Network and Token to Be Listed on Binance, OKX, and Bybit Today

Apple’s Reality Headset: A New Frontier in Virtual Reality

Join our free newsletter for daily crypto updates!