UK’s Financial Conduct Authority (FCA) reported that local investors lost over £27 million to scams involving crypto and forex investments last financial year. The FCA and Action Fraud are warning the public to be wary of such investment frauds which are often promoted as ‘get rich quick’ platforms in social media.

Furthermore, the authorities’ reports show that the average scam victim lost approximately £14,600, and that scams reports more than tripled last year to over 1,800.

The FCA’s announcement also features a clarification on how investment scams usually work. The regulator warns that fraudsters’ posts in social media often use fake celebrity endorsements and images of luxury items like expensive watches and cars. These then link to professional-looking websites where investors are persuaded to deposit. Those who do deposit are often led to believe that their first investments have made a good profit, and are urged to invest more. However, at some point the returns stop, the customer account is closed and scammers disappear with the money.

In an effort to tackle forex and crypto scams and raise awareness, FCA and Action Fraud will launch ScamSmart campaign, will be run across different social media platforms. The ScamSmart website is already operational and features tips on how to protect yourself from investment frauds.

'Scammers can be very convincing so always do your own research into any firm you are considering investing with, to make sure that they are the real deal', said Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, said. - 'Before investing online find out how to protect yourself from scams by visiting the ScamSmart website, and if in any doubt – don’t invest,' he further warned consumers.