Trading Scam

Background

A private individual approached myself and my team after falling victim to an online trading scam. The victim had been persuaded to invest in what appeared to be a legitimate cryptocurrency trading platform. Over a period of months, the individual transferred approximately £1 million into accounts controlled by the fraudsters. Once the funds were committed, the victim was unable to withdraw them, and all communication channels with the platform ceased.
Compounding the financial loss, the victim had also been required to provide Know Your Customer (KYC) documents – including a passport scan, proof of address, and banking details – as part of the platform’s onboarding process. These sensitive documents posed a further risk, as they could be exploited by the perpetrators for identity theft or to facilitate other fraudulent activities.
Our Role
1. Forensic Investigation – to identify where the victim’s assets had been transferred and whether any recovery options were available.
2. Victim Security Management – to protect the victim from secondary exploitation arising from the loss of their personal data and documents.
Investigation

Using specialist blockchain analytics tools and forensic tracing techniques, we conducted a thorough examination of the addresses associated with the fraudulent platform. Transaction histories were mapped and analysed to determine the flow of funds through multiple layers of wallets, exchanges, and obfuscation techniques.
This analysis revealed that the victim’s funds had been dispersed across several high-risk exchanges and routed through complex chains designed to obscure the ultimate beneficiaries. Reports were prepared detailing the asset flows, which could be used both for law enforcement engagement and civil recovery proceedings.
Victim Security Management

Parallel to the financial investigation, our priority was to mitigate risks arising from the compromised KYC documentation. We undertook the following measures:
• Digital Footprint Audit – assessing the victim’s exposure across online platforms and ensuring personal identifiers were secured.
• Monitoring & Alerts – putting systems in place to detect any misuse of the victim’s personal data on the dark web, fraudulent account applications, or suspicious financial activity.
• Preventative Guidance – advising the victim on strengthening digital security, including the use of multi-factor authentication, credit monitoring, and safeguarding communications.
• Law Enforcement Liaison – supporting the victim in reporting both the financial crime and the potential identity theft to relevant authorities.

Outcome
While the complexity of the laundering methods meant immediate recovery of assets was not possible, the forensic report provided a clear evidential trail. This report is now being used in parallel legal proceedings to seek restitution.
Equally important, our proactive security measures have so far prevented the victim from experiencing any secondary fraud or identity-related harm. The victim remains under ongoing monitoring and support to ensure long-term digital safety.
Conclusion
This case highlights the dual challenges faced by victims of cryptocurrency fraud: financial loss and the risk of personal identity compromise. We not only trace and investigate stolen assets but also provide critical victim management services to ensure individuals are safeguarded against further harm.