Cryptocurrency scams

Have you been contacted out of the blue by someone promising an amazing investment opportunity from cryptocurrency? It could be a scam. While it may look and sound believable, it’s all cleverly designed to trick you out of your money.

How cryptocurrency scams work

There are many crypto scams around but the people behind them will typically do one of the following:

Get you to buy real cryptocurrencies like Bitcoin and later steal them from you.
Make it look like you’re making money when really you’re just giving it away to the scammer.

To trick you into investing, they'll often:

Promise quick and easy money with little or no risk.
Pressure you to act fast, so you don’t ‘miss out’.
Create fake apps and websites that look like the real deal.
Use images and videos of celebrities in their ads to build trust.

If it sounds too good to be true, it probably is. Most people don’t realise they’ve been scammed until they try to withdraw the money they’ve invested and find out they can’t.

How to protect yourself from crypto scams

Avoid unexpected contact
Be wary of anyone contacting you out of the blue about a crypto investment, even if you’ve been searching for them online recently.
Beware of social media
Most crypto scams start on social media¹. Scammers use places like Facebook and Instagram to advertise crypto investments and send personal offers by direct message.
Check with the Financial Conduct Authority (FCA)
Individuals and companies who offer crypto services must be registered with the FCA. You can use their website to check the person or company you’re dealing with is listed on the register. If the person or company you’ve been contacted by isn’t listed, it's most likely a scam. Many scammers also pretend to be a legitimate company, so if the contact details you’ve been given don’t match what’s listed on the FCA website, don't invest. Check the FCA website open_in_new
Look out for warning signs
It's now a legal requirement for crypto adverts to show clear warning signs about the risk of losing your money. You also shouldn’t be offered any free gifts or refer a friend bonuses. If you see an advert that goes against this, it’s likely to be a scam.
Don’t share login details
Never share your login details for your investment account or private crypto keys with anyone else. A trusted company would never ask you for this.
Stay in control
Scammers may offer to ‘help’ in setting up an investment account for you. They may even ask you to download software or an app so they can access your devices to do so. Never let anyone do anything on your behalf or access your computer, phone or other devices.