Find out how crypto investment scams work, how to avoid them and what to do if you’re scammed.

How Crypto Investment Scams Work

Crypto investment scams are becoming increasingly common, with reports of these scams more than doubling since 2020. It’s crucial to know the warning signs.

Fraudsters typically advertise on social media, often using celebrity images to promote fake investment opportunities. They may also target people searching for investments online through search engines like Google and Bing.

These scam ads often lead to professional-looking websites, where fraudsters manipulate software to fake investment prices and returns. Once you’ve invested, they may quickly close your account and take your money, or they might keep up the illusion to lure others in. You may not realize you've been scammed until you try to sell your investment.

Most crypto-related activities are not regulated in the UK, meaning that if you invest in crypto, you typically won’t have access to the Financial Ombudsman Service if you want to make a complaint.

Watch out for the warning signs

• Have you been contacted out of the blue?  
• Are you being pressured to invest quickly?  
• Are you being promised investment returns that sound unrealistic?  

If you answer 'yes' to any of these questions, be extremely cautious. Remember, if an investment opportunity sounds too good to be true, then it probably is. 

Check our Financial Services Register

Firms offering crypto products in the UK must be registered with us or have permission to promote them. Our FS Register will show you which firms are registered, and which firms are operating without permission.  

• Search for the firm by name, or by using its firm reference number (FRN).   
• If the firm is registered, check what activities and services it has permission for. 
• Check the firm's contact details and make sure they match the contact details you've been given. 
• If you can’t find a firm on the FS Register, it’s unlikely the firm has permission to offer you crypto products and you should avoid using the firm.  

If you've been scammed

If you’re worried about a potential scam, or you think you may have been contacted by a fraudster, you can report it to us

Call us on +44 7520641812 or use our  contact form to get in touch.

If you’ve already invested in a scam, it’s important to remember that fraudsters may try to target you again, or sell your details to other criminals.