Law enforcement authorities are cautioning individuals across Africa not to invest in a cryptocurrency platform called Coscoin, also known as Cos or Cosetek, following reports of fraudulent activities.
Coscoin claims to be a “leading AI quantitative trading platform” promising to double investments. However, since the end of November, reports from various regions in Africa have surfaced, indicating that individuals are facing difficulties accessing or withdrawing their funds.
In the North East of England Regional Organized Crime Unit (NEROCU), 78 victims have reported total losses amounting to £214,869. On average, each person faced a loss of £2,900.
NEROCU has issued a warning externally, urging caution due to numerous fraud reports related to Coscoin. The platform, believed to be based in Washington, USA, appears to operate in a way that encourages users to recruit others, resembling a Ponzi or pyramid scheme.
The BBC interviewed a former Nissan employee who felt manipulated by someone claiming to represent Coscoin. After leaving work to become a WhatsApp group administrator for a cryptocurrency app, users discovered they couldn’t access their investments.
Detective Inspector Paddy O’Keefe, leading the economic crime team, advised,
“When it comes to money, it might sound repetitive but, if it sounds too 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 a victim of further frauds linked to your original loss.”
NEROCU is encouraging individuals who believe they have fallen victim to report it to Action Fraud.
Reporting incidents helps build intelligence to warn others and prevent further fraud. Stay vigilant and cautious in the face of enticing but potentially fraudulent investment opportunities.
