CRYPTOCURRENCY SCAMS Cryptocurrencies are digital currencies that use cryptography to generate ‘tokens’ and verify the transfer of these tokens between people. Criminals have taken advantage of the unregulated nature of cryptocurrencies to defraud consumers. There have been recent reports of members of the public in the area following up adverts seen online for Cryptocurrency investments. Some of these have supposedly been endorsed by “Celebrities” although their images may be AI creations. The Financial Conduct Authority (FCA) has also reported a rise in Cryptocurrency scams, some of which were even impersonating FCA representatives. What to watch out for -
• Criminals will advertise schemes promising, in some cases, high returns through cryptocurrency investing or mining.
• These adverts may look official, include celebrity endorsements or personal testimonies. Often the celebrities may not even know their name or photograph has been used.
• Frequently advertised on social media, criminals try to lure you in with adverts offering easy money quickly.
• Criminals benefit from the turbulence of the cryptocurrency markets, rushing people into parting with their money, pretending they are buying in at the right time.
• If something goes wrong with a cryptocurrency investment you are unlikely to get your money back, because they mostly are not covered by the UK’s Financial Services Compensation Scheme.
HOW TO PROTECT YOURSELF
• Do not assume it is real – professional-looking websites, adverts or social media posts do not always mean that an investment opportunity is genuine. Criminals can use the names of well-known brands or celebrities to make their frauds appear legitimate.
• Do not be rushed or pressured into making a decision – a genuine bank or financial organisation will not force you to part with your money on the spot. Always be wary if you are pressured to invest quickly or promised returns that sound too good to be true.
• Stay in control – avoid uninvited investment offers, especially those over cold calls. If you are thinking about making an investment, get independent advice and thoroughly research the company first No legitimate service will ask for crypto payments to unlock accounts, nor will they ask for sensitive banking details such as PIN’s and passwords or other personal details | 
