Crypto Scams Treble In A Year

The Financial Conduct Authority (FCA) in conjunction with Action Fraud is rolling out a public awareness campaign including advertising on social media for bogus online trading scams.  This follows a report that Crypto and Forex investment scams more than tripled last year to over 1,800.

Fraudsters promise investors high returns but victims to scams lost over £27 million in tax year 2018/19 alone and still more victims appear every day.

How it works:

By using social media fraudsters advertise ‘get rich quick’ online trading platforms.

Using ‘celebrities’ images and expensive items as a fake endorsement to get you to click on the links and take you to professional looking websites and persuade you to invest.

Thereafter, leading you on to believe your first investment has made a profit, they then contact the victims again and get them to invest more and get the victim to introduce other victims like family and friends to enable you an even greater return on your investment.   Returns eventually stop and the customers account is closed, the scammer disappears with no further contact.

A report by Action Fraud shows victims were scammed on average out of £14,600 each from forex and crypto scams in 2018/19.

The FCA’s ScamSmart campaign supported by the City of London Police will be encouraging people to be more vigilant and checking that their investment choices are legit.    Before investing check the Financial Services Register and visit the ScamSmart website.  If in doubt do not invest.

If you have been a victim of fraud or cybercrime then report it to http://www.actionfraud.org.uk/ or https://www.fca.org.uk/scamsmart

Comment

We have a saying at financialadvice.net:  “You can only con a greedy person”.  If it looks too good to be true, it probably is.  There is no such thing as a guaranteed, get rich quick investment which is secure.  If there was, we would be investing in it.  Get professional financial advice from us  before you part with your money.