Bitcoin and other investments are being used to lure people into scams, the UK’s financial watchdog has warned.

Fraudsters are contacting people online and through social media to offer them the chance to invest in cryptocurrencies and financial instruments. The solicitations often promise high returns and come alongside pictures of expensive watches and cars in an attempt to entice people to invest.

But any money investors hand over might then get locked up, with fraudsters changing prices on their website, forcing people to pay out extreme amounts of money to get their investment back, or just taking it and refuse to pay it back.

Gadget and tech news: In pictures Show all 25 1 /25 Gadget and tech news: In pictures Gadget and tech news: In pictures Gun-toting humanoid robot sent into space Russia has launched a humanoid robot into space on a rocket bound for the International Space Station (ISS). The robot Fedor will spend 10 days aboard the ISS practising skills such as using tools to fix issues onboard. Russia's deputy prime minister Dmitry Rogozin has previously shared videos of Fedor handling and shooting guns at a firing range with deadly accuracy. Dmitry Rogozin/Twitter Gadget and tech news: In pictures Google turns 21 Google celebrates its 21st birthday on September 27. The The search engine was founded in September 1998 by two PhD students, Larry Page and Sergey Brin, in their dormitories at California’s Stanford University. Page and Brin chose the name google as it recalled the mathematic term 'googol', meaning 10 raised to the power of 100 Google Gadget and tech news: In pictures Hexa drone lifts off Chief engineer of LIFT aircraft Balazs Kerulo demonstrates the company's "Hexa" personal drone craft in Lago Vista, Texas on June 3 2019 Reuters Gadget and tech news: In pictures Project Scarlett to succeed Xbox One Microsoft announced Project Scarlett, the successor to the Xbox One, at E3 2019. The company said that the new console will be 4 times as powerful as the Xbox One and is slated for a release date of Christmas 2020 Getty Gadget and tech news: In pictures First new iPod in four years Apple has announced the new iPod Touch, the first new iPod in four years. The device will have the option of adding more storage, up to 256GB Apple Gadget and tech news: In pictures Folding phone may flop Samsung will cancel orders of its Galaxy Fold phone at the end of May if the phone is not then ready for sale. The $2000 folding phone has been found to break easily with review copies being recalled after backlash PA Gadget and tech news: In pictures Charging mat non-starter Apple has cancelled its AirPower wireless charging mat, which was slated as a way to charge numerous apple products at once AFP/Getty Gadget and tech news: In pictures "Super league" India shoots down satellite India has claimed status as part of a "super league" of nations after shooting down a live satellite in a test of new missile technology EPA Gadget and tech news: In pictures 5G incoming 5G wireless internet is expected to launch in 2019, with the potential to reach speeds of 50mb/s Getty Gadget and tech news: In pictures Uber halts driverless testing after death Uber has halted testing of driverless vehicles after a woman was killed by one of their cars in Tempe, Arizona. March 19 2018 Getty Gadget and tech news: In pictures A humanoid robot gestures during a demo at a stall in the Indian Machine Tools Expo, IMTEX/Tooltech 2017 held in Bangalore Getty Gadget and tech news: In pictures A humanoid robot gestures during a demo at a stall in the Indian Machine Tools Expo, IMTEX/Tooltech 2017 held in Bangalore Getty Gadget and tech news: In pictures Engineers test a four-metre-tall humanoid manned robot dubbed Method-2 in a lab of the Hankook Mirae Technology in Gunpo, south of Seoul, South Korea Jung Yeon-Je/AFP/Getty Gadget and tech news: In pictures Engineers test a four-metre-tall humanoid manned robot dubbed Method-2 in a lab of the Hankook Mirae Technology in Gunpo, south of Seoul, South Korea Jung Yeon-Je/AFP/Getty Gadget and tech news: In pictures The giant human-like robot bears a striking resemblance to the military robots starring in the movie 'Avatar' and is claimed as a world first by its creators from a South Korean robotic company Jung Yeon-Je/AFP/Getty Gadget and tech news: In pictures Engineers test a four-metre-tall humanoid manned robot dubbed Method-2 in a lab of the Hankook Mirae Technology in Gunpo, south of Seoul, South Korea Jung Yeon-Je/AFP/Getty Gadget and tech news: In pictures Waseda University's saxophonist robot WAS-5, developed by professor Atsuo Takanishi Rex Gadget and tech news: In pictures Waseda University's saxophonist robot WAS-5, developed by professor Atsuo Takanishi and Kaptain Rock playing one string light saber guitar perform jam session Rex Gadget and tech news: In pictures A test line of a new energy suspension railway resembling the giant panda is seen in Chengdu, Sichuan Province, China Reuters Gadget and tech news: In pictures A test line of a new energy suspension railway, resembling a giant panda, is seen in Chengdu, Sichuan Province, China Reuters Gadget and tech news: In pictures A concept car by Trumpchi from GAC Group is shown at the International Automobile Exhibition in Guangzhou, China Rex Gadget and tech news: In pictures A Mirai fuel cell vehicle by Toyota is displayed at the International Automobile Exhibition in Guangzhou, China Reuters Gadget and tech news: In pictures A visitor tries a Nissan VR experience at the International Automobile Exhibition in Guangzhou, China Reuters Gadget and tech news: In pictures A man looks at an exhibit entitled 'Mimus' a giant industrial robot which has been reprogrammed to interact with humans during a photocall at the new Design Museum in South Kensington, London Getty Gadget and tech news: In pictures A new Israeli Da-Vinci unmanned aerial vehicle manufactured by Elbit Systems is displayed during the 4th International conference on Home Land Security and Cyber in the Israeli coastal city of Tel Aviv Getty

The rise of bitcoin’s price and the interest in buying it has also led to an increase in the number of people trying to rip off prospective investors. The Independent‘s guide to buying bitcoin – and not getting scammed – can be found here.

As part of the new warnings, FCA said figures show investors lost £87,410 per day to binary options scams last year in the UK. Binary options allow people to make a bet on the expected value or price of something that can be measured in financial terms, such as a stock, commodity, currency or index.

On 3 January, binary options became a regulated investment product, meaning all firms trading in binary options will need to be authorised by the FCA.

Scammers can create highly professional-looking online websites featuring fake customer reviews, logos and statements to lure in prospective investors.

The FCA said a rise in people being targeted online means the profile of investment scam victims is changing.

While over-55s have been more at risk of investment fraud in the past, research carried out as part of the FCA’s ScamSmart campaign suggests under-25s could be particularly susceptible to this type of fraud.

Those aged under 25 were found to be six times more likely to trust an investment offer they received via social media, compared with over-55s.

Mark Steward, director of enforcement at the FCA, said: “As people have become more sceptical of investment-related cold calls and consumer habits have changed, we have seen investment fraud moving online and to social media.

“While their websites and profiles appear to be professional, they are all too often run by fraudsters who fix prices and payouts, or in some instances don’t really place trades at all, before disappearing with innocent investors’ money.

“Before investing online, check you know who you are really dealing with and check if they are authorised by the FCA. Find out how to avoid scams on the ScamSmart website and, if in any doubt, don’t invest.”

TV presenter Nick Hewer, who is supporting the campaign, added: “The amount being lost every day to online investment fraud, such as binary options scams, is staggering.

“It’s vital for all those on social media to be extra cautious about engaging in any conversations or with adverts that relate to quick wins or guaranteed returns, especially with individuals or companies you do not know.

“Remember, if it sounds too good to be true, then it probably is. If you are offered an attractive investment out of the blue, be suspicious, check the FCA’s Warning List and seek impartial advice.

“Better still, if you get an email or message about an investment from someone you don’t know, just delete it.”

Here are the FCA’s top tips for avoiding investment fraud: - 1. Reject unsolicited investment offers whether made online, on social media or over the phone. - 2. Before investing, check the FCA Register to see if the firm or individual you are dealing with is authorised and check the FCA Warning List of firms to avoid. - 3. Get impartial advice before investing.

Additional reporting by agencies