A warning has been issued to people looking to make fast cash through crypto as the rising cost of living continues to stretch budgets

Authorities are wanting crypto investors to be on the lookout, with a growing number of investment scam complaints being received by Federal authorities.

The services says many of the complaints involve dodgy cryptocurrency services.

How it works

The scams involve unsuspecting investors being persuaded to buy crypto through an intermediary and then sending money to what they believe is a genuine investment platform.

But it’s too good to be true.

The “genuine” platforms are being run by fraudsters, and they’re stealing hundreds of thousands of dollars from unsuspecting investors.

Rising cost of scams

The ombudsman warns about examples of customers being scammed out of tens or even hundreds of thousands of dollars in the UK alone.

We are concerned that, in current economic circumstances, people could be tempted to invest in fake investments,” says Nausicaa Delfas, interim chief executive and chief ombudsman at the FOS.

“Our advice to consumers is be wary, conduct their own research, check the FCA register and contact the firm directly on the number listed.”

“If people feel they have been treated unfairly by their bank, they should contact the Financial Ombudsman Service, and we will see whether we can help.”