How To Prevent Investment Scams In Cryptocurrency
Globally investors are targeted by scammers related to the cryptocurrency or Bit coin currency. Crypto or bit coin is not a regulated investment in the UK. The trade of crypto currencies across exchanges is not under the FCA.
To prevent investment scams in cryptocurrency, one need to know ways investors are lured into investing in such schemes. Regulated investment is necessary to prevent scams in crypto currencies. Investors should be aware of the regulatory instructions related to crypto currencies and should know the risks and warning related to such investments in crypto currencies – CFDs and initial sale of such coins.
How it works?
The images of celebrities are advertised with such investment offers on social media or other advertisement platforms to attract investors, and these ads are linked to reputed investment websites. Buyers are asked to make investment using either crypto currencies or through other ways. Most such firms claim they have an office in London and may even, provide an address of their London office.
Such scammers use software to alter prices and returns on such investment and may sell crypto – currencies which does not exists at all. Anytime they can pull out the websites on which these offers are made, and block account of the investor, while, refusing to give money into their accounts. They may not provide the profits or earnings as they claim initially on such investment. Rather, they may ask the target buyers to send more money to get the sum earned. Warning has been issued by Action Fraud to handle enquiries related to such frauds.
How to prevent it?
Do not invest online lured by the advertisements offering exceptional returns on crypto currencies. FCA does not authorize the trade of such currencies and this means the investment is not backed by government and one may not get back the money, if lost through the FSCS (Financial Services Compensation Scheme) or the FOS (Financial Ombudsman Service).
Crypto currencies is not supported or regulated by any government organization. Check company’s registration details to see if it is UK –based company or not. Look for queries and concerns posted by other investors, check the warning list and never invest in a hurry, on being pressured by the investor, claiming to get huge returns if invested early. Do not believe the money back guarantees and if you suspect scam, contact immediately to 111 6768 (Consumer Helpline).
In case you suffer from loses due to such investment, report it to consumer helpline. Since these are not supported by UK government regulations – one may not get back the invested money but the details provided by you will help to tract criminals.
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