The model, 43, was paid to tell her 2.6 million subscribers about the Josh Chandler “whiz” currency.
Kate Dalrymple, 40, a nurse from Newcastle upon Tyne, says Katie should pay back £ 825 – almost a month’s salary – which she lost.
‘Josh’ guaranteed her £ 1,250 if she transferred £ 100. She sent the money and then was asked to pay a ‘release fee’ of £ 725 – and was told she would get over £ 4,000.
Kate says she has lost almost her entire £ 1,140 per month salary. She reported the scam to Action Fraud and at least five other people were trapped.
Katie Price’s team said the TV personality didn’t know it was a scam and that she too had been cheated on.
She told The Sun, “I feel so stupid. But I’ve always been a fan of Katie. I thought she was a good mother and was related to her.
“I used to defend her when she got stung, and I couldn’t understand all the bad publicity she was getting.
“Now I feel so disappointed and embarrassed. How could she put her name in there?
“I saw her posting stories on Instagram praising this man, and I just thought it couldn’t be a scam.
“She encouraged her fans to follow him, so I did.
“My bank, Lloyds, even called me to point out that it looked like fraudulent activity but, again, because Katie Price approved it, I told them it was genuine.
“I texted Katie once I realized what had happened, but she didn’t respond. I am devastated – and disgusted by his behavior.
On at least two occasions, Katie took to Instagram Stories to praise Chandler, urging others to invest their money to earn a “secure income.”
I feel so disappointed and embarrassed. How could she put her name in there?
Katie is said to have received around £ 3,000 per post.
In an article published last month, Katie said, “Hey guys, so I want to tell you about a friend of mine named Josh.
“He’s amazing at what he does. And you might have heard of it or seen it on other media sites, if you want to get a secure new income. . . “
However, neither “Josh” nor Katie follow one another on social networks.
Lloyds is investigating but believes they won’t be able to get Kate’s £ 825 back. She stopped before paying him an additional £ 1,400.
In a first exchange of messages, he was asked to give his bank details, his date of birth and a copy of his driver’s license to open an account on crypto.com.
From there, Kate, who has a four-year-old son, has been repeatedly asked to transfer increasing amounts.
At one point, in messages seen by The Sun, Kate asked “Josh” to promise it was not a scam, adding “because I will die otherwise.”
He replies, “Katie Price doesn’t promote fraud.
‘FREE PASS’ FOR ESCARPERS
In other exchanges, he calls Kate “dear” and “darling”, before reassuring her about the legitimacy of volatile currency markets.
However, after Kate asked where his money was and if “Josh” was really based outside the UK, he got nasty.
After calling her on Instagram, he addressed a despicable threat to her son, before sending her a message: “You clearly deserve to be ripped off, racist mother **** r”. Kate has now blocked the account.
It is prohibited to post sponsored content on social networks without disclosing it. And the Advertising Standards Authority says influencers and stars must report all financial arrangements, using the hashtag #ad.
Katie failed to report that she was being paid in her positions.
Forex traders speculate whether the value of one currency will rise or fall against another.
However, if investors use an unauthorized company, they will not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme, so they are unlikely to get their money back.
Mother of five Katie, who was once worth £ 40million, was declared bankrupt in 2019. In April it emerged that she still owed her creditors £ 3.2million.
Six months ago, she enthusiastically endorsed the XChloesWorld Instagram page, an unauthorized FX trader.
After fans complained online, financial authorities requested the account be deleted.
The Financial Conduct Authority (FCA) has repeatedly warned against unauthorized traders using fake media profiles to deceive consumers.
Tory Andrew Bridgen said last night: “Social media companies and law enforcement need to take a much more proactive approach to investigating and prosecuting crooks. At the moment, they seem to have a free pass.
I am devastated – and disgusted by Katie’s behavior.
Katie claimed she was unaware of previous warnings from financial authorities.
Her spokesperson admitted the star had benefited financially, but said she had no idea “Josh” was not legitimate. His management team is investigating.
The spokesperson said, “Katie would never knowingly engage in a social media endorsement if it was questionable. This recent information shocked her.
“It is not only her loyal supporters and fans who have been deceived, but she herself is the victim of a professional organization.
“Katie isn’t the only celebrity who has been targeted. “
Chandler did not respond to repeated requests for comment.
The FCA said, “Consumers can protect themselves by checking the FCA registry on our website to see if businesses are licensed and rejecting unexpected offers that sound too good to be true. “
Spot the scam
By Daniel Jones, consumer editor
Unusual investments, or those offering lower returns than offered by a bank, are usually scams.
The crooks are jumping on the latest trends. Many are now pushing Bitcoin or crypto investments. Never send money unless you’ve verified the company is registered and called them on a trusted number.
Also beware of advice from a celebrity. Scammers often laugh at fake ads and include famous faces to deceive their victims.