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Cryptocurrency is a digital currency that uses cryptographic encryption for security. Unlike traditional currency, crypto operates outside the control of banks and countries.
Scammers like cryptocurrency because it provides anonymity and limited protections. This makes it easier for them to exploit victims and steal their money.
If you’ve fallen victim to a crypto scam, we’re here to assist you in recovering your funds. Despite the challenges, scammed crypto can be recovered using cutting-edge training and software. At CEL Solicitors, our fraud recovery team has helped recover over £70 million lost to fraud and scams.
Any scheme promising a high return on investment with no risk at all is certainly a scam and should be avoided at all costs. There is a level of risk associated with every type of investment, no matter how safe it may be.
Investments in companies not regulated by the Financial Conduct Authority (FCA) lack protection under the Financial Services Compensation Scheme (FSCS) in cases of bankruptcy or theft. You should never invest with a company not regulated with the FCA.
Be cautious of any unsolicited offers through social media, email, or messaging apps – especially if it sounds too good to be true. Any “investment opportunity” that comes directly to you should signal an immediate red flag.
Avoid schemes that require recruiting others or promise rewards for bringing in new investors. If an investment scheme depends on recruiting new investors to operate, it is a pyramid scheme and will eventually fail.
Creating deadlines and playing on a victim’s fear of missing out is a key tactic used by scammers. Without time to research or think critically, targets are likelier to fall for a scam than those given time to think about and research the scheme.
Crypto investment scams target people looking to invest in cryptocurrency, especially after hearing about the significant profit others have earned. These scams target people who are new to the world of cryptocurrency and may not be familiar with the risks involved.
They usually start when someone you don’t know, claiming to be a cryptocurrency “investment manager,” contacts you with a too-good-to-be-true offer. They often promise high returns with little to no risk, enticing investors to hand over their money.
These scammers often have legitimate-looking websites with confusing investing terms, designed to look as real as possible.
Scammers create fake websites, emails, and text messages that look identical to legitimate platforms and organisations. Operating this way allows the fraudster to use the reputation and reviews of the real company to exploit the trust of their victim. They trick their target into providing sensitive information like passwords or private keys, which the scammers then use to steal crypto funds.
Criminals may create fake cryptocurrency exchanges or wallet services that appear legitimate. They may lie and claim that they are authorised by the FCA, or they may use their authorisation with a foreign financial service to “prove” their legitimacy. Victims who put money or crypto assets into these services are not allowed to remove their funds without paying extortionate fees – if they are allowed to withdraw at all.
In some cases, these fake platforms may allow and even recommend that the investor withdraw their earnings early as a show of good faith. However, this is simply a way of building trust before stealing far more money over time.
Many crypto scams involve fake celebrity endorsements. Cryptocurrency scams often exploit the names of famous CEOs or influencers like Elon Musk, Martin Lewis, or Holly Willoughby to promote their fraudulent products.
Artificial Intelligence (AI) can even be used by scammers to create deepfake videos of celebrities that are impossible to tell apart from reality. This makes telling real videos apart from fake videos more difficult.
A common tactic for scammers attempting to steal money or crypto assets is to tell their victims that they need access to their computer or phone. They request access through screen-sharing software like AnyDesk, Microsoft Teams, or TeamViewer, offering to help set up or manage their crypto account.
After gaining access, scammers can steal files and login information from your device, including access to your bank account or crypto wallets.
Crypto scammers find their victims through various means, such as social media platforms, online forums, and email campaigns.
They may use phishing techniques like fake emails and text messages designed to look like a legitimate company. They may also use fake adverts on news sites or social media like Facebook or Instagram, offering too-good-to-be-true returns for safe investments.
Whether the scammer contacts the victim directly or waits for the victim to come to them, the results are the same. Cryptocurrency’s popularity has made it easier for criminals to steal money and assets. They can do this without the security measures of traditional banking and investment platforms.
If, during your crypto scam claim, we believe that your case would benefit from a deep dive analysis, we may offer to create a crypto investigation report.
Online scammers exploit the popularity of cryptocurrencies to steal money
Scammers often pose as banks, the police, government, or other trusted organisations
Fraudsters offer fake investment opportunities with promises of high returns
Criminals dupe victims into paying upfront for goods or services.
Online scammers exploit emotions, tricking victims into sending money
Victims unwittingly authorise payments, deceived by fake sellers in purchase scams
Individuals or businesses pay fake invoices, inadvertently sending funds to the scammer
Scammers offer work-from-home opportunities with up-front costs and withdrawal fees
Our team of recovery experts are on hand to help you get your money back.
