UK Authorities Recognize Scam Risks Around Cryptocurrency

The FCA announced that investors dealing with cryptocurrency are at risk. They also stated that the dealings with cryptocurrencies like BTC are not run under the UK government regulations and are out of the control and authority of the FCA. Their involvement is limited, though, to their authority over certain firms which might be using cryptocurrency in their sales process.

The FCA followed their statement by giving examples of reported schemes that some scammers have followed to harm the investors. Among which is a case where a scammer poses on social media to impersonate a celebrity using their name and profile picture, and asks the investors to pay their cryptocurrency. This is one of the main tricks reported in the UK and as per the FCA, they are not liable to reimburse the victims of scams in any way.

Various Scams

Another scheme that was used to hinder some investors comes from a scammer utilising a London address on their profile, which tricks UK investors into thinking that the scammer is legitimate. However, the FCA state that it is relatively easy now for someone to use software and technology to create pages that give fake information. Also, the FCA added that scammers may use software to trick investors into purchasing cryptocurrencies that do not even exist.

The FCA warns investors to be careful when dealing with cryptocurrency, and to research before deciding to pay for digital assets as these scam cases are becoming very common, and very harmful.

2 years ago

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