New figures from Scotland’s national consumer advice service suggests that at least £120,000 has been lost to cyber criminals through fake investment scams since the start of this year. Advice Direct Scotland, which runs consumeradvice.scot, is urging people to be more vigilant on social media platforms such as Facebook, the recently rebranded Twitter X, and the new Threads app amid a surge in online fraud.
The charity has seen cryptocurrency scam complaints double in the first quarter of this year. Between January and March, 18 Scots sought assistance from Advice Direct Scotland, losing more than £120,000 to such fraud, including an Aberdeen man who was tricked out of around £10,000.
This marked a two-fold increase in both the number of cases and the total value compared to the previous quarter. Additionally, Advice Direct Scotland disclosed that other forms of online fraud had risen by almost a third (32%) during the same period.
Advice Direct Scotland said the true scale of the problem is likely to be worse than indicated, as the figures do not account for unreported cases or those directly reported to the police.
Criminals often employ social media adverts featuring fake celebrity endorsements to entice people into investing in crypto assets, using aggressive tactics and promising unrealistic returns.
The charity stressed the importance of understanding your investments and conducting thorough research.
Consumers should always check if a company is regulated and authorised by the Financial Conduct Authority on its register here.
They should also be wary of:
- Unexpected contact
- High-pressure tactics
- Promises of unrealistically good returns
- Assuming something is legitimate simply because it has a professional-looking website or social media posts
One man from the Aberdeen area lost around £10,000 in an investment scam after being targeted on social media. The scammers promised him a £90,000 return within a year and convinced him to make regular payments using gift cards.
They also claimed that an extra fee would ensure the £90,000 delivery to his door through a courier. After blocking all contact and failing to deliver the money, he sought help.
Unfortunately, since payments were made using difficult-to-trace gift cards, options for recovery were limited. However, he is currently exploring the possibility of refunds through the debit and credit card companies used for some of the purchases.
Advice Direct Scotland has also seen an increase in ‘Hi Mum/Hi Dad’ scams, in which criminals impersonate loved ones and send unexpected messages via text or WhatsApp, urgently requesting money.
It is important for people to pause and confirm the true identity of the person they are speaking to before taking any action.
There has also been a surge in gift card scams, with criminals targeting people online posing as a friend asking for financial help in the form of vouchers from retailers.
They then take the funds, or sell the codes to other scammers.
Advice Direct Scotland urged people to report any suspected scams to its scamwatch servic e, with the organisation able to then share this information with the authorities.
Lyndsay McFee, consumer project lead at Advice Direct Scotland, said: “Unfortunately, we are aware that Scots have lost more than £120,000 to fake cryptocurrency schemes in the space of three months. However, this is a significantly underreported problem, and there may be many more victims of such scams.
“Scammers are constantly seeking new opportunities, including through social media, to target Scots and acquire personal information, bank details, or money. It is crucial to stay vigilant while using both new and existing apps or websites.”
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She continued: “One key thing to remember is that if something sounds too good to be true, then it probably is and always thoroughly research any financial product or firm you are considering dealing with.
“People should not feel pressured or rushed into making a purchase as this can be a clear sign of a scam. Never pay to recover any money as this is likely to be part of a larger fraud.”
Anyone who thinks they may have been scammed should contact trained consumer advisers at www.consumeradvice.scot or by calling 0808 164 6000 for free, impartial, and practical advice.
To keep up to date with the latest scams, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday – sign up here.
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