Cryptocurrency scam is on the rise says British watchdog

cryptocurrency scam

British Financial Conduct Authority said on Friday that cryptocurrency scams are on the rise in London inducing consumers to pay cash, with the advertisements with celebrity images and London market addresses.

Cryptocurrencies including Bitcoin and Ether are not properly regulated in the UK, the FCA claimed that they have witnessed a rising number of reports regarding investment scams that offer the high return on investments in cryptocurrency.

The FCA said in a statement, “UK consumers are being targeted heavily for these investment scams, the scammers use social media platform as a marketing tool to target consumers and use celebrity images for fake endorsement, the statement added.”

The advertisement links take users to different websites where they can make the quick investment either by using cryptocurrency or cash.

The FCA said the websites operating for scams are often based outside the UK but the disguise to be present in the UK with City of London addresses.

The UK watchdog said since the cryptocurrencies are not regulated in the UK, the users who fall prey for scams cannot get their money back or protected by Financial Services Compensation Scheme.

Financial consumers in the UK should watch their back before making this kind of investment decision; users must conduct a full background check on their own and seek help from a financial adviser before they make any investment.

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