Categories: Bitcoin Business

Criminals Use Bitcoin Tumbler to “Clean” $645,000 Worth of Funds Stolen Through Banking System

Click here to view original web page at

One undisclosed UK-based regional water supply company has lost over $645,000 due to a very sophisticated scam. It appears the criminals used a combination of an inside man, social engineering, and wire transfers to get the money out. Unfortunately, it appears most of the stolen funds were converted to Bitcoin, even though cryptocurrency does not provide additional anonymity whatsoever.

Major UK Water Supply Scam Linked to Bitcoin

It is always troubling to hear criminals use nefarious tactics to scam people. Things only get worse when they use the stolen funds to buy Bitcoin, which gives the popular cryptocurrency a very bad name. In this particular incident, an undisclosed UK water supply company lost $645,000 due to a very thorough scam conducted by unknown assailants.

Things started to unravel once the water supply company found out several of their clients were locked out of their accounts. To be more specific, it appears a data breach has been carried out against the supplier. Once clients regained access to their account, they noticed new banking details have been assigned to the profiles. That was only the beginning of the concerns of this UK company, though, as the real damage appeared to be a far more severe.

It is worth mentioning the bank details were changed thanks to someone helping the scammer from the inside. A call center employee was apparently taking pictures of work PC’s screens and sending information to his cousin. The cousin could then issue a password reset for the accounts to gain access to them. The first thing he did was updated the bank account details and issue a refund to his own account.

A further investigation revealed all affected accounts have been subject to a refund request for previous transactions. The total funds are worth over 500,000 GBP, all of which were sent to two different UK bank accounts. Interestingly enough, the two banks were a victim as well, as someone tricked them into sending over 90% of all the funds overseas. Transfers were made to international banks located in the Bahamas and Dubai.

From here on out, the entire ordeal only becomes even more confusing. Somehow, the money was converted into Bitcoin and sent through an undisclosed tumbler service to erase the “taint” associated with the money. It is unclear whether or not the money has been retrieved right now, although it seems fair to assume the police have no idea where to look. Bitcoin is not anonymous by any means, yet tumblers provide a certain degree of anonymity to help cover up tracks.

All of this goes to show Bitcoin is not necessarily facilitating organized crime by any means. The scamming itself was done using traditional bank accounts, which were then later used to buy Bitcoin and anonymize it through a tumbling service. Although this makes it harder to recover the stolen funds in question, it is doubtful the water supply company would have been able to retrieve funds through the banking system either.

If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by

Recent Posts

Is Boris Gone Landslide and How Would Bitcoin, Markets, React?

The sun has returned on London streets as Boris Johnson, the unelected British Prime Minister, once again covers our TV… Read More

3 hours ago

California Man Admits Masterminding $25 Million Bitcoin Launder Fest

A Los Angeles man has plead guilty to a multi-million money laundering scheme. | Source: Shutterstock By CCN Markets :… Read More

3 hours ago

WORLD NEWS: This Week in Blockchain and Crypto

This week has seen interesting developments around the globe on crypto projects and governments interest in the digital assets space.The… Read More

3 hours ago

Bitcoin Circuit: Is it a scam? Read our comprehensive review!

If you are looking for ways to speculate on cryptocurrencies, then I am sure you have thought about signing up… Read More

3 hours ago

Model: Bitcoin (BTC) Price to Surge 100% to $20,000 by May

In just around nine months, Bitcoin (BTC) will see its next block reward reduction — dubbed “halving”. Despite this rapidly… Read More

3 hours ago

Early Bitcoin Contributor Projected $10 Million BTC Price 10 Years Ago

Share Tweet Send Share Just a week after the bitcoin genesis block in January 2009, computer scientist Hal Finney published… Read More

3 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More