Globally, investors are being targeted by cryptocurrency or Bit Coin scammers. Crypto or bit coin is not a regulated investment in the UK. Trading in cryptocurrencies on exchanges is not regulated/approved by the FCA. Preventing cryptocurrency investment scams requires knowing the ways in which investors are lured into such schemes. Regulated investing is necessary to prevent cryptocurrency scams. Investors should be aware of the regulatory instructions related to cryptocurrencies and should know the risks and warnings associated with such investments - CFDs and initial sale of these coins. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essayHow does it work? Celebrity images are advertised with such deals on social media, or the company may adopt other advertising platforms to attract investors, and these advertisements are linked to reputable investment websites. Buyers are welcome to invest using either cryptocurrencies or other means. Most of these companies claim to have an office in London and can even provide the address of their London office. These fraudsters use software to change prices and returns on these investments and can sell cryptocurrencies that don't exist at all. At any time, they take down the websites where these offers are made and block the investor's account, while refusing to deposit money into their accounts. They may not provide the profits or gains they initially claim on these investments. Instead, they can ask target buyers to send more money to get the amount earned. A warning has been issued by Action Fraud to deal with requests relating to such fraud. How to avoid it? Do not invest online or be lured by advertisements offering exceptional returns on cryptocurrency investment. The FCA does not allow trading in these currencies and this means that the investment is not backed by the government, meaning one cannot recover the money if lost via the FSCS (Financial Services Compensation Scheme) or the FOS (Financial Ombudsman Service). . Cryptocurrencies are not supported or regulated by any government organization. Check the company registration details to see if it is a UK based company or not. Look for questions and concerns expressed by other investors, check the warning list and never invest in haste, under pressure from the investor, claiming to get huge early bird returns. Don't believe money back guarantees and if you suspect a scam, contact 111 6768 (Consumer Helpline) immediately. If you incur losses in such an investment and are unable to recover your money from the company, report it to the consumer helpline or file a report online. As these are not supported by UK government regulations, the money invested may not be recovered, but the details you provide will help track down the criminals..