Fake cryptocurrency investments are a growing concern. Last year, Britons lost more than £150 million to cryptocurrency fraudsters, with 18-25-year-olds the hardest hit[1]. To help people avoid this scenario, the expert lawyers at KP Law have examined the common types of cryptocurrency scams and outlined some methods to avoid them.
Here are some of the most common types of scams:
If a retailer claims that they can only accept Bitcoin or another crypto as payment, it’s probably a scam. No credible organisation would do this.
Be careful of anonymous accounts. If you pay by crypto, there are virtually no safeguards. It really is a case of ‘buyer beware’.
Be careful of anything promoted as a get rich quick scheme (including new forms of crypto). If it seems too good to be true, it probably is.
Dating scammers often use crypto to scam their victims. If an online partner pressures you into sending crypto or investing in crypto, this is a red flag.
Phishing scammers who want your private information might try to trick you into sending crypto to a compromised digital wallet. Be vigilant at all times.
Ads on social media are a particular problem, clicking through to websites that look genuine (imposter scams). These appear to be run by a legitimate financial services company and seem to be endorsed by well-known celebrities. Offering high, guaranteed returns, these advertisements are often fake, and people lose all their money after “investing”.
Blackmailers who claim to have evidence of you using adult websites or other illicit web pages, and who threaten to expose you unless you send cryptocurrency are usually scams. All forms of criminal extortion should be reported to the police.
The best way to protect yourself from financial crime is to understand the risk. But as there are many new and evolving risks in the crypto world, it can be hard to keep up. If you want to invest in crypto, it is wise to start with beginner-friendly exchanges like Coinbase or Gemini and popular cryptos such as Bitcoin and Ethereum which have a longer track record than other altcoins.
Find out more about how to protect yourself from investment fraud.
Furthermore, if the worst happens and you do become a victim of investment fraud, the best way to try to recover funds is by reporting any suspected fraud to the police and to your bank.
At KP Law, we can also help people affected by investment fraud get their money back. Providing a cool head in a crisis, we remove the burden from your shoulders as we fight for justice. What’s more, because we offer no-win, no-fee funding arrangements, you benefit from expert legal support and complete peace of mind without having to worry about costs.
Our solicitors have even won cases where victims had been told that there was little to no chance of compensation.
Contact us in confidence to find out how we can help.
