British Watchdog Reports Increase in Cryptocurrency Scams, According to Reuters

LONDON – Cryptocurrency scams are exploiting images of celebrities and upscale London locations to deceive consumers into investing their money, according to the UK’s Financial Conduct Authority (FCA).

The FCA initially issued this warning in June and reiterated it on their website recently.

In the UK, cryptocurrencies like bitcoin and ether are not regulated, and the FCA has noted an increase in reports of investment scams that promise high returns.

"UK consumers are increasingly being targeted by cryptocurrency-related investment scams," the FCA stated.

"Fraudsters in the cryptocurrency space often promote their schemes on social media, leveraging images of celebrities or prominent figures to entice potential investors."

These advertisements typically lead to websites facilitating investments via cryptocurrencies or traditional cash methods.

"The firms behind these scams are often located outside of the UK but claim to have a British presence, frequently using a prestigious London address," the FCA explained.

Due to the lack of regulation surrounding cryptocurrencies, consumers face a significant risk of losing their money without any means of recovery, as they are not safeguarded by the Financial Services Compensation Scheme, the watchdog cautioned.