The UK Financial Conduct Authority is warning that scammers are using a new marketing tactic where they post fake celebrity endorsements on social media and paid articles around the web in order to lure in victims before stealing their money.
Fake Celebrity Endorsements in the Crypto Market
Finance Magnates has reported about this phenomenon and about the FCA warning. According to Finance magnates “The Financial Conduct Authority (FCA) has warned that cryptocurrency scams are using images of celebrities and London addresses from wealthy areas to trick investors into investing with dodgy companies. The warning from the British regulator was first made earlier this year in June, but it has reposted the warning on its website again today. This is because the watchdog has seen a rising number of investment scam reports, where companies are claiming to offer high returns.” [view article]
If you are an investor looking to purchase cryptocurrencies and then sell them for a profit, you have to be very careful when dealing with any type of firm that is offering any kind of crypto investment as the cryptocurrency market is largely unregulated at the moment.
Regulated Brokers and Exchanges
Trading on a regulated exchange is probably less risky. Before trading with any broker or trading platform, you can check to see if the platform is regulated in your country and search online to find if the firm has been flagged for suspicious activity or if it has had security problems such as hacking.