Elderly couple fall victim to a Bitcoin scam that costs them $100,000

An elderly couple allegedly lost £80,000 (about $100,000) in a cryptocurrency scam falsely linked to British financial expert Martin Lewis.

Martin Lewis is a well-known personality in the UK, recognized for his expertise in consumer finance, journalism and television presenting. He is the founder of MoneySavingExpert.com, a website that offers financial advice and savings tips. Martin is a regular on television and radio programs and is known for his advocacy of financial education and consumer protection. His contribution to consumer rights and charity has earned him an OBE. With his vast knowledge and influence, Martin is regarded as an authority on personal finance in the UK.

According to an article published on 23 April 2023 on the UK financial website This Is Money, the couple, Barbara and Ewan Atkins (to protect the privacy of the scam victims, the names have been changed) fell victim to a scammer who falsely claimed to be supported by Martin Lewis. Apparently, the fraudster convinced the couple to invest in Bitcoin through a series of transactions using the FinTech platforms Revolut, Wise and Binance. The fraudster posed as an investment manager and guided the couple in setting up accounts and avoiding fraud prevention measures. The pair made 14 transactions ranging from £3,000 to £5,000, with their ‘investment’ allegedly doubling in value within four weeks.

But when the couple tried to withdraw their money, they were asked to pay £10,000 in capital gains tax when they realized they had been defrauded. Their daughter and son-in-law reported the fraud to the banks, but both Barclays and Revolut reportedly refused to repay the lost funds.

Barclays reportedly told pensioners they would not be repaid their lost money, as the bank claimed to have warned them about the payouts in advance and called to confirm the transactions. Similarly, Revolut apparently denied the existence of fraudulent activity on the couple’s account and subsequently refused to compensate them for the loss. Instead, they allegedly sent the couple some links for informational purposes (among them a link to a website to find a food bank), hoping to help them understand the situation and avoid similar situations in the future.

Revolut has announced that it is expected to receive its UK banking license in the near future. Although the company offers current account services, it is not classified as a bank. The article states that Revolut is not a signatory to the Contingent Reimbursement Model (CRM), an agreement between UK banks to reimburse certain types of fraud victims.

History has highlighted the importance of verifying the legitimacy of investment opportunities and the legitimacy of financial firms before conducting transactions. Martin Lewis’ website, MoneySavingExpert.com, as well as Barclays and Revolut, have urged consumers to be vigilant and carry out thorough research before investing.

A Revolut spokesperson told This Is Money:

“We are very sorry that Mr and Mrs Atkins were targeted by ruthless and highly sophisticated criminals. We take our responsibility to protect and support our customers extremely seriously and have made significant investments in our systems, processes and people to ensure our customers are safe. When making an investment, we encourage everyone to take steps to ensure that the person they are sending money to is legitimate. We encourage clients to check that the investment company is genuine and a regulated firm. If in doubt, first seek reliable, independent financial advice.“