Operation Galafarm: Metropolitan Police Crackdown on Crypto Fraud Sees Trio Arrested

Cryptocurrency is a form of digital currency that only exists online but can be invested in or traded much like traditional stocks and shares. It’s stored in encrypted digital wallets, meaning only the owner can access or spend the currency using a private ‘key’. Prices can rise and fall sharply, but many people are drawn to crypto, hoping to make a significant return quickly.

Unfortunately, its rise in popularity over the past decade has also made crypto a target for scammers, who are either looking to get their hands on victims’ crypto wallets or fabricating entire crypto investment opportunities to convince victims to part with their money – like in Operation Galafarm.

Crypto scams may start with convincing adverts or social media posts; some involve scammers contacting people out of the blue, posing as brokers, and promising to deliver high returns from investments that ultimately do not exist.

In other cases, fraudsters may impersonate authority figures, such as the police, on the pretence that they are investigating banking fraud, as we recently covered in our blog.

Cryptocurrency scams sit under the umbrella of Authorised Push Payment (APP) fraud, which is where, through social engineering techniques such as impersonation and manipulation, individuals are tricked into transferring money directly to scammers, authorising their banks to do so via online or telephone banking.

Common signs of a crypto scam include:

• Being put under pressure to make urgent, impulse or fear-based decisions within a short space of time
• Demands for increasing amounts of money with increased urgency
• Encouraging individuals not to tell family or friends
• Fake domain names with subtle errors that do not match official websites
• Coaching the victim to lie about the purpose of a money transfer or to ignore scam warnings on banking apps

If you are ever unsure about an investment opportunity, do not proceed. As the old saying goes, “It is better to be safe than sorry”, and if it seems too good to be true…it probably is.

If you believe you’ve been scammed, immediately contact your bank or crypto wallet provider using their official website or the contact details from your bank statements. You can also call the 159 Fraud Helpline for further guidance.

It’s important to report the fraud to Action Fraud (the National Reporting Centre for Fraud and Cybercrime), which helps protect others from similar scams and may also trigger a criminal investigation. In the UK, banks have a duty to investigate fraud on your account and may be able to recover your money; however, if you’re unhappy with their response, you can escalate the matter to the Financial Ombudsman Service (FOS), an independent government backed body that resolves disputes between consumers and financial institutions.

Since October 2024, new rules around Authorised Push Payment (APP) fraud have placed greater responsibility on banks to prevent scams and reimburse victims promptly – usually within five working days. However, not all cases fall under the updated regulations, especially older or more complex claims. Despite these welcome changes, FOS still expects a 12% rise in fraud-related complaints, showing that many victims still need support.

TLW Solicitors specialise in these cases and can assist if you’re struggling to recover compensation from your bank following a scam.

Sarah Spruce, Legal Director at TLW Solicitors, commented:

“The fraud uncovered by Operation Galafarm involves an astonishing amount of money and an unknown number of victims, and that is just one scheme – people are being targeted by fraudsters every single day. Being a victim of a crypto scam like this can be absolutely devastating, so it is positive to see the police cracking down.

If you’re considering investing in cryptocurrency, we urge you to do your research, including getting professional advice, and take your time before committing; that could be the difference between a sound investment and a financial nightmare.

If you or someone you know has been scammed, get in touch with our specialist fraud team, and we can explore whether you may be eligible to make a ‘no-win, no-fee’ compensation claim.”