Trading Standards - Cryptocurrency Investment Scams

11th April 2025

As AI technology continues to evolve, there is a rising number of cryptocurrency investment scams.

Between January and June last year, over £1.1million was lost to investment scams in Scotland, with an average of almost £18,000 being lost by each consumer affected.

48% of these scams began online via scam websites or social media, with 20% involving fraudulent adverts which use the images of celebrities or well-known individuals such as Martin Lewis or Elon Musk 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.

Once they have entered their details on the website, they are often contacted by someone posing as a 'financial advisor' who encourages them to make a small initial investment. After a few days, they will be told that their investment is growing and be encouraged to send more money. When they try to access their investment, the scammer cuts off all contact with them.

In some cases, the scammer then calls the consumer, this time posing as a company who is investigating the investment scam. They promise to reclaim the money lost, but ask for a fee up-front. Again, once the consumer has paid this the scammer cuts off contact with them.

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 any 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
Police Scotland advice: www.scotland.police.uk/advice-and-information/internet-safety/cryptocurrency-scams/
Get Safe Online: www.getsafeonline.org/crypto