With an approximately 50% decline in the value of cryptocurrencies so far this year Reassura have become aware of a large increase in fraudsters offering fake methods of investing in this supposedly “once in a lifetime opportunity”. The criminals are using cold calls, social media platforms (frequently using images of famous faces to falsely endorse their product) and websites. In June and July of this year Action Fraud in the UK had 203 reports of this crime with an average loss of over £10,000.
THE FINANCIAL CONDUCT AUTHORITY ONLY REGULATE SOME CRYPTOCURRENCY DERIVATIVES AND NONE OF THE CURRENCIES THEMSELVES. THAT MEANS THAT MOST INVESTORS WILL NOT HAVE ACCESS TO THE FINANCIAL SERVICES COMPENSATION SCHEME.
Tips and Advice
- Research, research, research – check up on any firm you are thinking about using, use the FCA’s registry and their warning list as a starting point.
- Don’t be taken in by an impressive looking website/address – with the average loss on these crimes of over £10,000 the fraudsters have plenty of money to invest in a good-looking website.
- If you must buy some – research the “wallet” provider that will hold them, a simple Google search of “best digital wallet” and looking for a reputable source such as a major newspaper article is a much better approach than reacting to an advert/cold call.
- Avoid cold calls – cold calls are not the way reputable companies market their investment products, so don’t buy from a cold call!
- Read More – Read the FCA website on crypto currencies to better understand the risks..
Reassura is dedicated to helping raise awareness of scams and fraud along with the impact they have on their victims. Reassura’s team of specialist anti-fraud advisors are here to help members make better decisions and avoid falling victim to scams and fraud.
For further information or for advice and assistance regarding any potential scam, call Reassura on 0800 888 6400