This was sent to me by my bank and I felt that it was worth sharing as it contains some good advice.
Criminals are capitalising on the growing attention cryptocurrency is attracting. But how can you know whether your investment is genuine and not just another scam? We want to help you protect yourself by sharing some key information.
What is a cryptocurrency scam?
A cryptocurrency scam is a type of investment fraud that involves criminals stealing money from people hoping to invest in digital currencies. Cryptocurrency is accessible to everyone and with any budget, meaning anyone can fall victim.
Most firms advertising and selling investments in cryptoassets are not authorised by the Financial Conduct Authority (FCA). This means that if you invest in certain cryptoassets, you will not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if things go wrong.
How can I protect myself?
Know the warning signs and make the right checks. It’s almost that simple.
A celebrity endorsed investment in cryptoassets, or cryptoasset-related products doesn’t mean it’s a genuine endorsement or a legitimate investment.
Don’t allow anyone to set up a cryptocurrency wallet, upload ID documents or manage investments on your behalf remotely.
Avoid uninvited investment offers whether made on social media or over the phone. If you’re thinking about making an investment, thoroughly research the company first and consider getting independent advice.
Don’t fall for pressurised sales with limited timescales and promises of too good to be true returns.
Use the FCA website fca.org.uk - to look up the company who you’re buying crypto from and check they’re a legitimate registered firm, not unregistered, or a clone or fake. Then call them using the number on the FCA website when you both set up a payment and every time you make a payment, even if you think it’s going to the same place.
Use FCA ScamSmart, an online tool to help you identify if your investment is a scam or not. Answer four questions with drop downs for multiple choice and get a clear picture on the potential investment and the potential risks.
To find out more about how to protect yourself against cryptocurrency scams, visit the
If you think you’ve been the victim of a fraud or scam or think you may have shared personal or security details with anyone, please contact your bank as quickly as possible.
