FSCL warns investors to beware of cryptocurrency scams

A recent complaint resolved by Financial Services Complaints Limited (FSCL), involving Bitcoin, has highlighted how easily consumers can fall prey to cryptocurrency scams.

FSCL found that a consumer used an exchange platform to purchase cryptocurrency to invest in an investment scheme and this resulted in a total loss of $15,000.

The key signs that the “investment” was a scam included the fact that it offered guaranteed returns, a photo on the company’s website purporting to be the CEO appeared to be someone else, and that the consumer had already received returns on his initial investment.

Although the exchange platform had set out their concerns at the time, it was only when the consumer had lost all of his investments and asked the exchange platform to refund him $15,000 for the Bitcoin he had invested, that he understood the exchange platform was not liable for the loss.