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Crypto Scams

What Is Crypto Fraud?

 

Cryptocurrencies are digital currencies like Bitcoin, which act as an alternative form of payment to traditional money.

They are held in encrypted digital wallets and can be bought and sold, with values often fluctuating wildly.

Crypto investments are still relatively new to many, and they have become a lucrative target for scammers looking to deprive people of their money.

Cryptocurrency fraudsters will often lure people in with promises of riches, only to steal their money.

People are often targeted on social media or WhatsApp with slick advertising campaigns promising a quick and easy return on investment.

The scammers will sometimes even have a seemingly professional website and promotional videos, but behind the glitz is an attempt to steal your money or your personal information.

The first thing to remember if you have been scammed is that it is not your fault.

After all, people in the UK lose more than £300m in crypto scams each year. There is no shame in falling victim to these increasingly clever fraudsters.

So no matter how you have been scammed, we are here to lend a sympathetic ear and help you recover your money as quickly as we can.

How To Spot A Crypto Scam

So how can you identify a cryptocurrency fraud, and what are the common signs to look out for?

Here’s our list of common crypto scam features.

  1. Get rich quick: be wary of promises of high returns on investment for very little risk. If a crypto investment sounds too good to be true, it almost certainly is.
  2. Pressure selling tactics: scammers will often pressure you into investing quickly, to give you less time to do proper research. If they’re genuine, they’ll be happy for you to take your time.
  3. Fake celebrity endorsements: scammers often use fake testimonials and photographs of celebrities who have apparently endorsed their scheme. A quick check on a search engine should reveal if the endorsement is fake or genuine.
  4. Transparency – who are you dealing with? If you can find little to no information about the company or individual you are dealing with, it’s an indication you should steer well clear.
  5. Unsolicited offers: be very wary if you are contacted about a crypto investment opportunity out of the blue on social media, via messaging apps, or by email. These ‘cold’ approaches are a common method of targeting potential victims.
  6. Glossy websites and slick adverts are easy to set up and are no guarantee of authenticity. Do proper research before investing.
  7. Lack of regulation: buying and selling crytpo currency isn’t regulated in the UK so you have littel or no protections.
  8. Misspellings and poor grammar: be on the lookout for any poor spelling or obvious grammatical errors in email or other written communications.

Protect Yourself From Crypto Scams

Knowing what to look for is half the battle of avoiding crypto scams, but there are some other things you can do to protect yourself.

  • Check the Financial Conduct Authority register to see if you are dealing with an authorised firm, and the FCA warning list of firms to avoid. Be aware that crypto activity is only regulated in terms of their publicity/ marketing and the way in which they receive and hold cash rather than crypto-related activity.
  • Before investing large sums of money, always ask a trusted friend or family member, or an independent financial advisor, to provide their opinion.
  • If you have a digital wallet, make sure you have strong passwords and never disclose login, priavte keys or password details to a third party.
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