FCA warns of online investment fraud, including cryptocurrencies

The Financial Conduct Authority has warned of the rise of online investment fraud, including cryptocurrencies, after finding that investors last year lost more than £87,000 per day to one type of scam.

In a press release, the UK watchdog said that fraudsters are promoting themselves through social media channels, such as Facebook, Instagram and Twitter, to entice people to invest in binary options, contracts for difference (CFDs), forex and cryptocurrencies (such as bitcoin).

The fraudsters promise "high returns" and use images of luxury items, such as expensive cars, to attract investors.

They then distort prices on their websites, tie people in with "extreme pay-out clauses", close people's account but without returning their money.

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