Guidance

Cryptocurrency related investment scams continue to be prevelant across various social media platforms, which can result in significant financial loss (i.e. lifesavings, pension etc.) and in some cases may lead to increased risk of causing mental health issues such as depression and anxiety.

During lockdown cases of cryptocurrency investment scams increased. It is believed that the number of victims falling for this may be significantly higher as it is suspected many cases go unreported to Police.

The best way to protect victims is to encourage them to be careful and selective about the websites they visit and whom you engage with online, especially when considering to invest large amounts of money – Cryptoassets | FCA

Below are some details of the potential signs of this type of crime, along with advice and support that is available to those who may have been affected.

What is Cryptocurrency?

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. Cryptocurrency can be traded or exchanged online to buy from people or companies who accept this form of payment.

Cryptocurrency investments are often made via currency exchange platforms. These are websites where you can buy, sell or exchange cryptocurrencies for other digital currency or traditional currency like GBP or US dollars.

Criminals benefit from the volatility of the cryptocurrency markets, pressuring people to make decisions without due diligence or consideration.

Some people who have been scammed don’t realise for some time. They may make multiple or regular payments to the criminal and only realise when they try to withdraw their money from the ‘scheme’.

If something goes wrong with a cryptocurrency investment you are unlikely to get your money back, because they mostly aren’t covered by the UK’s Financial Services Compensation Scheme.

The National Cyber Security Centre (NCSC) published figures which showed that as of March 2022, 11 million phishing scams were reported which resulted in 78,000 scams being removed – Fake cryptocurrency investment lures make up more than half of all online scams detected.

Who is behind this crime?

This type of crime can be carried out by lone individuals or organised crime groups who are maybe based overseas. For perpetrators it’s a low risk way to make money, and they can reach a wide range of individuals easily online. The perpetrator(s) is gambling that enough people will respond so that their scam is profitable.

How to spot a Cryptocurrency Scam?

• You see adverts on social media, sometimes celebrity endorsed, offering unrealistic returns on investments
• You’re contacted by phone, email or social media about an opportunity using aggressive techniques and incentives to buy before certain deadlines
• You’re told your buying in at the perfect time. You may be offered a high return on your investment with apparently little or no risk
• You’re pressurised into making a decision with no time for consideration
• You’re told the investment opportunity is exclusive to you

How to protect yourself?

• Don’t assume it’s real – Professional-looking websites, adverts or social media posts don’t always mean that an investment opportunity is genuine. Criminals can use the names of well-known brands or individuals to make their scams appear legitimate.
• Don’t be rushed or pressured into making a decision – A genuine bank or financial organisation won’t force you to part with your money on the spot. Always be wary if you’re 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’re thinking about making an investment, get independent advice and thoroughly research the company first.

Advice for victims of investment scams;

If you or someone you know has been a victim of an investment scam, don’t feel embarrassed, help and support is available.

1. Contact the Police immediately. The police will take your case seriously, will deal with it in confidence.
2. Contact your Bank immediately. Ensure all pending/future transactions are cancelled.
3. Report to Financial Conduct Authority (FCA). Phone their Consumer Helpline on 0800 111 6768 or using their report form.
4. Don’t communicate further with the criminals. Take screen shots of all your communication. If they contacted you via Social Media, suspend your account (but don’t delete it) and use the online reporting process to report the matter to Instagram, Facebook etc. Deactivating your account temporarily rather than shutting it down will mean the data are preserved and will help police to collect evidence. Also, keep an eye on all the accounts which you might have linked in case the criminals try to contact you via one of those. If you were contacted by email, you can forward the email to the NCSC’s Suspicious Email Reporting Service (SERS) on report@phishing.gov.uk, and then delete it.
5. Preserve evidence. Make a note of all details provided by the offenders, for example; the email address, number or social media account that you have been contacted from; the Western Union or MoneyGram Money Transfer Control Number (MTCN); any bank account details; cryptocurrency wallet, etc.
6. Block and report. Report them to the platform they have contacted you on and block the individual on the platform / in your contacts.
7. Don’t panic. It can be a very distressing situation for some people but there is lots of help, advice and guidance out there.

Further help and support

If this has happened to you or someone you know please talk to a family member, friend, colleague or line-manager that you trust. Please check out our useful links section with more support channels available along with guidance and links to trusted partner agencies.

For mental health support and information, visit Scotland’s Mental Health Charity.

Further information, advice and guidance:

• Report a scam email
• Report a scam website
• Report a scam advert
• Report a scam to the Financial Conduct Authority
• Financial Conduct Authority
• Victim Support Scotland

Information from Police Scotland Cybercrime Harm Prevention Team