Cryptocurrency scammers are constantly evolving their craft; this has made it difficult to keep up with their tactics. Scam artists generate persistent nuisance on the IoT (Internet of Things).
Consumers in the UK are frequently being targeted by cryptocurrency investment scams, and these scams have been increasing at an alarming rate ever since cryptocurrencies became relevant.
Financial Conducts Authority
Popularly referred to as FCA, this body serves as a financial regulatory body within the United Kingdom. However, this body operates independently of the UK government.
FCA regulates financial firms that provide services to consumers within the country.
FCA’s Report On Location-based Scams
According to the FCA, most cryptocurrencies are not regulated in the United Kingdom. The purchase and sale of these digital currencies fall outside the regulations of the FCA.
Cryptocurrency scams tend to begin with online social media advertisements, and these ads redirect those that click on them to legitimate-looking websites, tricking the unsuspecting users.
FCA stated that “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”.
Usage Of Prestigious Addresses By Scammers
Cryptocurrency scammers are not shy about making use of whatever scheme or technique they have to, as long as it yields them their desired result.
The city of London is the most likely location for scammers to operate from. “The City” is located entirely within London.
How These Location-based Scams Work
Scam organizations operating within the UK market often manipulate investment prices and expected returns; they often trick people into investing in non-existent cryptocurrencies.
Scam organizations can also misrepresent, as they sometimes claim to trade in popular cryptocurrencies such as Bitcoin and Ethereum.
Once these scammers get a hold of your money, they tend to close the accounts of customers; they then severe all communication ties with said customers.
How To Stay Protected
FCA also advised potential investors to verify the authenticity of firms they want to invest in. Members of the public can check whether or not the firms in question received authorization from financial regulators in order to sell the products they advertise.
FCA also released a “warning list” of all the confirmed scam firms/organizations operating in or around the UK. This list is the surest way to know which firms to avoid at all cost.
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