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Scam guide
Crypto scams
Top tips to stay safe
Crypto scams happen when scammers try to trick you into investing in fake cryptocurrencies. Crypto scams are often advertised on social media or cold calls. Scammers will promise quick and high returns on non-existent investments in order to steal your money.
Here’s our top tips to keep safe:
- Get professional advice: talk to a financial advisor before investing. Never take advice from a company that cold called you.
- Do your research: check out the company website and look for review from others. Keep in mind that some reviews may be fake.
- Check the FCA list: look at the list of unauthorised businesses. It’s updated often and it shows businesses suspected of fraud. You can find more scam checks on this site, like verifying authorised companies.
- Secure your assets: use well-known cryptocurrency exchanges and wallets. Enable two-factor authentication to protect your accounts. Never transfer your wallet to someone else.
- Be careful with unrealistic promises: high returns with little or no risk are often signs of a scam.
How to spot crypto scams
Scammers use different ways to try and trick you. Here are the common signs to watch out for:
- Pressure to act quickly: scammers often create urgency to make you invest fast.
- Lack of information: legitimate projects provide clear information.
- Lack of regulation: most crypto investment firms lack FCA authorisation. Be careful investing in unregulated or offshore locations.
- Fake endorsements: fake testimonials are accompanied by a picture of a well-known celeb to help the investment seem real, always verify celebrity endorsements.
- Poorly designed websites: professional investments usually have well-designed sites.
Learn more about crypto
Crypto is a digital asset for online trading or exchanges. It can be used to buy from those accepting this form of payment. Investments in cryptocurrencies are often made on exchange platforms.
These are platforms where you can buy, sell or exchange cryptocurrencies. You can trade with digital currencies or traditional money like Euros.
Professional traders use exchanges with advanced trading tools. These platforms often require ID verification to create an account. You’ll then have access to a ‘wallet’ to store your crypto.
Cryptocurrencies are not protected by the Financial Services Compensation Scheme (FSCS). So, investing in them carries a higher risk.
We don’t allow our customers to make credit card payments to crypto exchanges. Look at our guide to investing to see how we could help you build your wealth.
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