Cryptocurrency scam alert from police as investors urged to take care online

Investors thinking about sinking cash into cryptocurrency are being advised to be cautious and avoid the scammers.

Cryptocurrencies are digital currencies that are known for their market volatility so the value of investor’s assets go up and down quickly. Criminals can take advantage of the unregulated nature of cryptocurrencies to scam consumers.

As AI technology continues to evolve, there is a rising number of cryptocurrency investment scams. Between January and June last year, over £1.1 million was lost to investment scams in Scotland.

Some 48 per cent of these scams began online via scam websites or social media, with 20 per cent involving fraudulent adverts which use the images of celebrities or well-known individuals. These adverts then link to professional-looking websites where consumers are persuaded to invest with the fraudster firm using cryptocurrencies or traditional currencies.

Police Scotland have issued a number of simple tips to help keep people out of the clutches of the scammers:

• Before making any investment, check that the company is regulated by the Financial Conduct Authority at https://orlo.uk/2ZUI4

• Be wary of social media adverts or messages offering huge returns for a small initial payment. Be suspicious if you are contacted via phone, email or social media by someone you don't know about an investment opportunity. Never respond to any requests to send money from someone you don't know.

• Do plenty of research before considering buying cryptocurrency, starting with online searches for background, ownership, reports and reviews on the company behind the product or service.

• Don't be rushed into making a decision about an investment - seek advice from someone you trust or from a financial advisor accredited by the FCA.

Find out more at https://orlo.uk/08FQT