Cryptocurrency Investment Fraud

Crypto investment fraud is one of the fastest growing types of fraud in the UK, experienced by those who believe their ‘investment’ will vastly grow their money.

How crypto investment fraud works

Fraudsters often use social media to advertise, frequently featuring celebrities to attract victims. They also target individuals searching for investment opportunities via search engines like Google and Bing.

The advertisements typically link to professional-looking websites where fraudsters use software to manipulate prices and investment returns. After you've invested, they might quickly close your account and disappear with your money. Sometimes, they maintain the pretence to lure in more victims. Many people only realise they’ve been defrauded when they try to sell their supposed investments.

Protecting yourself from crypto fraud

In the UK, most crypto activities are unregulated. This means you won't have access to the Financial Ombudsman Service if you want to make a complaint, or the Financial Services Compensation Scheme (FSCS) if the company goes out of business, making it unlikely you'll recover your money.

Recognising the red flags of crypto investment fraud

If you answered 'yes' to any of these, proceed with caution. Remember, if an investment seems too good to be true, it probably is.

Verifying firms on the Financial Services Register

Firms offering crypto products in the UK must be registered or have permission to promote them. Use - Financial Services Register | FCA - to check a firm's status.

If a firm isn't listed on the FS Register, it likely doesn't have permission to offer crypto products, and you should avoid it.

For more advice on how to protect yourself against investment fraud, please visit - Protect yourself from scams | FCA

Reporting crypto fraud

If you think you have been a victim of cryptocurrency investment fraud, please report it to Report Fraud on 0300 123 2040 or via our reporting hub here -  UK's Home for Reporting Cyber Crime & Fraud - Report Fraud

To quickly contact your bank's Fraud Team dial 159.

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