Fraud warning over cryptocurrency investment app

Officers said investment platform, Coscoin, appeared to be a Ponzi/pyramid scheme

Police have warned people not to invest in a cryptocurrency investment platform following reports of fraud.

Coscoin, also known as Cos or Cosetek, describes itself as "a leading AI quantitative trading platform" where people can double their investments.

However, reports to police from across the UK have seen people unable to access or withdraw their money since the end of November.

In the north-east of England, 78 victims have come forward with a total loss of £214,869, with an average loss £2,900 per person, police said.

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The North East Regional Organised Crime Unit (NEROCU) have issued a warning following multiple reports of fraud.

Officers said the structure of Coscoin, believed to be based in Washington in the US, appeared to also incentivise users to recruit people to the platform in what appeared to be a Ponzi or pyramid scheme.

The BBC spoke to a former Nissan employee who felt he had been used as "a puppet" by someone claiming to work for Coscoin, after leaving work to become a WhatsApp group administrator for a cryptocurrency app, only for users to find they were unable to access investments.

Det Insp Paddy O’Keefe, who leads the economic crime team, said: “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.”

NEROCU have urged people to report if they believe they have been a victim to Action Fraud, as it helps them build intelligence pictures to help warn others.