Investment Scams - Cryptocurrency - Trading Standards

12th July 2024

The number of reported investment scams relating to social media platforms has trebled since 2019, with total losses rising from £13m to £75 million.

66% of investment scam cases begin on social media, with Instagram and Facebook as the most common sources.

The scams often start with fraudulent adverts which use the images of celebrities or well-known individuals to promote cryptocurrency investments.

These adverts then link to professional-looking websites where consumers are persuaded to invest with the fraudster firm using cryptocurrencies or traditional currencies.

Last year, one woman lost £125,000 to an online cryptocurrency scam after responding to an advert on social media which illegally used Bear Grylls' face and claimed that he had made 'a fortune' through Bitcoin trading.

How to Avoid
The Financial Conduct Authority (FCA) has warned that most firms advertising and selling investments in cryptoassets are not authorised by them.

Before making an investment, check that the company is regulated by the FCA at register.fca.org.uk/s/

Be wary of social media adverts or messages offering huge returns for a small initial payment. Be suspicious if you are contacted via phone, email or social media by someone you don't know about an investment opportunity. Never respond to any requests to send money from someone you don't know.

Do plenty of research before considering buying cryptocurrency, starting with online searches for background, ownership, reports and reviews on the company behind the product or service.

Don't be rushed into making a decision about an investment - seek advice from someone you trust or from a financial advisor accredited by the FCA.

Never follow instructions from a cold caller to download an app or software which would allow them to access your computer remotely.


Find out More
FCA advice on cryptocurrency investment scams: www.fca.org.uk/scamsmart/cryptoasset-investment-scams
FCA Financial Services Register: register.fca.org.uk/s
ScamShare PDF: www.tsscot.co.uk/Spotlight-Investment.pdf
Which? guidance on investment scams: www.which.co.uk/consumer-rights/advice/how-to-spot-an-investment-scam
Get Safe Online: www.getsafeonline.org/crypto