Crypto Scams in the UK: The Age-Old Tricks Still Working (and What To Do)

Impersonation, pressure tactics, too-good-to-be-true returns, and recovery scams continue to target UK crypto holders. Practical steps to verify, slow down, and protect yourself.

Scams still work because the tactics are timeless

Cryptocurrency scams in the UK are not particularly sophisticated. The underlying techniques — impersonation, manufactured urgency, promises of exceptional returns, and exploiting trust — have been used by fraudsters for decades. What has changed is the medium: social media, professional-looking websites, and the irreversibility of blockchain transactions make crypto an attractive target. Recent cases highlight that even experienced investors can be caught out when under pressure or presented with what appears to be a credible opportunity.

Why this matters now

The FCA continues to warn consumers about crypto investment scams, noting that fraudsters often use social media to advertise fake opportunities, create convincing websites, and impersonate legitimate firms. Once crypto is transferred to a scammer's wallet, recovery is extremely difficult or impossible. Understanding the common patterns helps you recognise warning signs before any funds are at risk. For further reading on recent cases, see the BBC coverage of crypto fraud tactics.

How these scams typically work

According to FCA guidance on crypto investment scams, common patterns include: social media advertisements promising high or guaranteed returns; professional-looking websites that mimic legitimate investment platforms; cold calls or messages from strangers offering crypto opportunities; pressure to invest quickly before an opportunity closes; requests to download remote access software or share screen; impersonation of regulated firms, celebrities, or trusted contacts; and follow-up recovery scams where fraudsters pose as lawyers or recovery specialists offering to retrieve lost funds for an upfront fee. Recovery scams are particularly cruel because they target people who have already been victimised.

UK checks that actually reduce risk

The FCA provides specific guidance on protecting yourself from scams. Key steps include: checking the FCA Register to verify whether a firm is authorised; comparing contact details on a firm's website against the Register entry (scammers often copy names but use different phone numbers and emails); checking the FCA Warning List of unauthorised firms and individuals; and slowing down — legitimate opportunities do not require immediate decisions. If you receive contact from someone claiming to represent a firm, verify through official channels by finding the firm's details independently rather than using contact information provided in the message.

For accountants, solicitors, IFAs and wealth managers: client questions to ask

Professional advisers can help clients reduce scam risk by asking straightforward questions. Consider incorporating these into client reviews: Has anyone approached you with a crypto investment opportunity recently? Were you contacted via social media, email, or cold call? Did they promise guaranteed or unusually high returns? Were you pressured to act quickly or told the opportunity was time-limited? Did they ask you to download any software or share your screen? Have you verified the firm on the FCA Register? Do the contact details match? Have you checked the FCA Warning List? Have you discussed this with anyone else before investing? If a client has already lost funds to a scam, be alert to recovery scam follow-ups. These are not advice questions — they are practical checks to help clients pause and verify. For more on working with clients on crypto, see our adviser resources.

Where Bitzo fits

Bitzo provides crypto security and inheritance coordination for UK families and advisers. Our role is strictly non-custodial: we never hold private keys, never hold client funds, and never ask for seed phrases, passwords, or access credentials. Bitzo will never ask you to share your seed phrase or private keys — anyone who does is not acting on our behalf. What we do provide is documentation and verification support: structured Policy Packs, verified trusted contact records, audit trails, and recovery coordination workflows. This operational layer sits alongside your existing security arrangements and professional advisers. Learn more about how it works or book a call to discuss your situation. See our pricing for service options.

Disclaimer

Bitzo provides operational coordination only. We do not provide financial, legal, or tax advice. The information in this article is for general guidance based on publicly available FCA resources and does not constitute professional advice. If you believe you have been the victim of fraud, contact Action Fraud and seek appropriate professional advice.