Scams related to cryptocurrency investment

Digital Assets And Crypto Trade Scams

The crypto assets appear trendy and attract many new investors; at the same time, the scammers are exploiting the buzz to sell bogus digital assets or options in mining using fake testimonials that appear legitimate. 

The exchanges offering such options are not unregulated. However, the celebrities' endorsement and the huge earnings or the lucrative assets bought through crypto traders depicted with huge earning proofs and luxury lifestyles attract new investors to platforms selling digital currencies. 

How Is It Conducted?

The schemes are sponsored on the top pages of search engines and endorsed by popular personalities who claim to have earned a lot through such options, only to get registrations/fund transfers from new traders.

Some fraudsters use software to alter the rates and returns through such trades when the user seeks to sell their investments, and sometimes, the user's account is blocked by the broker without informing them. If the users try to contact, the broker may not answer and refuse to give the earned money into their accounts. Instead, they may ask the buyer to send more funds into their accounts to claim their earnings in such trades.

How To Protect Yourself?

• Most online scams are based on crypto-asset transactions, and legitimate governments or central banks do not back them. Besides, the holdings in the digital wallets are not insured; they can be lost /deleted anytime, and their market value remains highly unstable and unpredictable. 

• Do not invest through online platforms that are offering unusually high profits. The FCA does not back any such trade; if the money is lost, the user cannot claim the losses with the government.

• If investing in alternatives, check the platform's registration details and see if the company is based in the UK. Research for the queries and reviews posted by previous customers, or get independent advice from experts.

• Check the trade terms and conditions carefully, and never give in to pressure and buy quickly. 

• Do not believe in the money-back guarantee and the promised huge returns in a short duration.

• If you suspect any fraud, report it to the consumer helpline or file it with government agencies that can help track the criminals to avoid future loss.