Crypto Scammers Exploit Fake Police Reports to Steal $1.2M in the UK
Victims deceived into sharing wallet seed phrases in a sophisticated fraud scheme

A group of crypto scammers stole over £1 million ($1.2 million) from nine residents in Kent, England, by exploiting a data leak and posing as law enforcement. The criminals accessed victims' personal information and used it to fabricate reports from Action Fraud, the UK’s national reporting center for fraud and cybercrime.
Kent Police issued a warning on March 1, urging residents to remain vigilant against such cryptocurrency fraud attempts. According to officials, scammers manipulated the leaked data to create fake police reports, which they then used to contact potential victims under the guise of an official investigation.
The scam involved two key phases. First, victims were informed they were under investigation and were expecting a call from their "crypto wallet host." In the second phase, a supposed "security officer" contacted them, pressuring them to reveal their wallet seed phrases—12- or 24-word combinations that provide full access to crypto funds.
“With that information, the fraudsters were able to rebuild the wallet, steal the funds, and transfer them so that they couldn’t be recovered,” Kent Police stated.
Detective Sergeant Darryll Paulson warned the public never to disclose sensitive information to anyone claiming to be police or a crypto service provider. He emphasized that scammers are becoming more sophisticated, often using fear tactics to rush victims into making poor decisions.
Authorities are urging victims to report scams without shame, as falling prey to fraud can happen to anyone in moments of distraction. Crypto investors are strongly advised to keep their seed phrases private to prevent unauthorized access to their funds.