Spike in crypto currency investment frauds targeting young men triggers NCA campaign to improve awareness of risks
Fraudsters are using social media and dating sites to lure in younger men with promises of enormous returns when the schemes are little more than blatant theft.
The campaign strapline is Crypto Dream Scam Nightmare and is being promoted on social media, including a 60-second video on YouTube featuring the distressing story of an anonymous victim, who decided to dabble in crypto.
In the video, the lead character started small with a £500 crypto investment, which then ballooned to £28,000 as he believed his money was growing exponentially. Within six months, the site told him his money had grown to an astounding £400,000. Of course, his reality was disturbingly different.
‘Fake digital platforms make would-be investors believe their money is growing, making extraordinary profits in a short period of time,’ the NCA warned. ‘The victims live under the false belief their money can be withdrawn at any time.’
Hard selling draws in investors, who are predominantly men aged between 25 to 44, and they are bombarded with messages at all times of the day, including invites to be a ‘member of an exclusive club’ pretending to come from a finance ‘professor’ or ‘guru’, and overbearing sales techniques.
The scammers typically set up fraudulent crypto trading platforms, which draw in naïve investors with promising investment opportunities, with initial downpayments of thousands of pounds and promises of substantial returns.
The sites tell investors ‘not to tell family or friends about your new investment’, pretending that it is a special opportunity, while taking money out is virtually impossible.
In reality, while many of these fraudulent platforms allow a small initial withdrawal, people are then blocked from making further withdrawals by high fees, penalties and taxes.
Instead of investing the money in crypto, the fraudsters simply steal the money, and once investors are in a scheme, it is nearly impossible to withdraw anything from the platforms.
Nick Sharp, deputy director fraud at the National Economic Crime Centre (NECC) in the NCA, said: ‘Crypto investment fraud is one of the fastest growing types of fraud in the UK, experienced by those who believe their ‘investment’ will vastly grow their money.
‘That is why the NCA is actively targeting and disrupting the criminal networks behind crypto investment fraud through investigations and intelligence sharing with international partners. However, prevention remains equally as important as disruptions.’
Tips on avoiding crypto fraudsters
The NCA has produced a list of top 10 tips to avoid being scammed, including:
- Do not respond to unsolicited approaches about day trading or crypto investment companies on social media or dating platforms;
- Beware of continuous pressure to make additional investments, and of messages being sent outside of business hours;
- Beware of ‘early exit’ attempts to move communication from original platform onto encrypted platforms, such as WhatsApp or Telegram;
- Do not be convinced if a small initial withdrawal is successful, further withdrawals may be blocked by high fees or taxes.
Action Fraud figures showed there were over 17,000 reports of crypto investment fraud in 2024, with men aged 25-44 the most common victims.
Useful links
Crypto Dream Scam Nightmare Ten Tips
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