Crypto investment scams - the signs to look out for

This week is International Fraud Awareness week. Throughout the week we will be sharing information and advice on how to spot the signs of different types of scams and fraud.

One of the methods used by scammers which is on the rise is Crypto investment scams.

According to the Financial Crime Agency (FCA), crypto scams have more than doubled since 2020.

Known for its volatile market price, crypto is a digital currency that uses cryptography technology to secure transactions.

The number of people investing in crypto has significantly grown in recent years and this has introduced an opportunity for criminals to exploit and defraud people.

Crypto scams are frequently advertised on social media platforms and will often offer people the opportunity to make easy money quickly – promising high returns through cryptocurrency investing or mining. However, this is just a way for scammers to fraudulently obtain money and personal information.

If you are thinking of investing in crypto, research the company, use an FCA registered adviser and be wary of:

• Websites, schemes and adverts promising high returns through cryptocurrency investing or mining
• Schemes offering easy money quickly
• Phone calls and emails out of the blue offering an investment opportunity – any email you get from someone you don’t know is likely to be spam, especially if it is not addressed to you personally and promises some kind of gain
• Celebrity endorsements and fake testimonials
• Being pressured into making a quick decision on an investment – no legitimate person will pressure you into departing with your money

Advice and information

Find more advice and information about investment fraud from Take Five and the Financial Conduct Authority.

If you think you have been a victim of a fraud, report it to Action Fraud on 0300 123 2040 or go online to www.actionfraud.police.uk.

Earlier this year one South Yorkshire victim of crypto investment shared her story to help others avoid falling victim to the crime. Watch her story: