Cryptocurrency scams on the rise, warns UK’s financial regulator FCA

UK's financial regulator Financial Conduct Authority (FCA) on Friday, August 17, said cryptocurrency scamsters are using photographs of celebs and office addresses in posh London localities to deceive investors. FCA had earlier warned about the same in June. The report posted on the regulator's website notes that cryptocurrencies like Bitcoin and Ether are not regulated in Britain. FCA claims to have received several complaints regarding investment scams that promised great returns. See also: Petro cryptocurrency springs, attains the same status as Venezuelan Bolívar “UK consumers are being increasingly targeted by cryptocurrency-related investment scams,” the FCA said in a statement. “Cryptocurrency fraudsters tend to advertise on social media, often using the images of celebrities or well-known individuals to promote cryptocurrency investments.” “The firms operating the scams are usually based outside of the UK but will claim to have a UK presence, often a prestigious City of London address,” the FCA stated. See also: US SEC clamps down on cryptocurrency airdrops and bounty campaigns The investments made by consumers are not eligible for the Financial Services Compensation Scheme since the cryptocurrencies are not regulated. Hence, there is little chance to get the money back, the report said. A week ago, the UK police also warned public over ponzi crypto investment schemes after Action Fraud national reporting center found crypto-related scams accounted for $2.5 million in losses in June and July 2018. Image via Shutterstock Join our Telegram group