Bitcoin investment scammers stole my £66,000 life savings – and I had to sell my home too
John Walker from St Ives was scammed after looking for a way to make some extra cash after being signed off work
PAINTER and decorater John Walker has lost his home and £66,000 life savings after falling for a Bitcoin investment scam.
The 53-year-old who lives with his wife and teenage daughter, fell for the fake advert while looking for a way to make some extra cash after being signed off work for 12 weeks with two broken ribs.
Today, the City watchdog, the Financial Conduct Authority (FCA), has issued a warning about crooks using Facebook, Instagram and other online channels to lure victims into handing over their cash for investment and cryptocurrency scams.
John, from St Ives in Cornwall, spotted an advert for Bitcoin investments while using a sporting app on his phone. He hadn't hard of it before but was attracted by the idea that he could invest from as little as £250.
The advert lured people in with the promise of fast cash. John recalls it saying something along the lines of "if you invest £250, your money will return £1,500 in 24 hours".
He said: “The advert looked very convincing, so I provided my address and details. After that, I was bombarded by calls.
Signs that should set the alarm bells ringing include:
- Unexpected contact – while you may be on your guard for cold callers, you now need to be alert to contact out of the blue from all sorts of online sources, such as email or social media. The same applies to contact you may get through the post, via word of mouth, or even in person at a seminar or exhibition.
- Time pressure – beware if someone offers you a bonus or discount if you invest before a set date or says the opportunity is only available for a short period.
- Social proof – keep an eye out for fake reviews and claims that other clients have invested, or want in on the deal.
- Unrealistic returns – watch out for fraudsters promising tempting returns that sound too good to be true, such as much better interest rates than elsewhere.
- False authority – don’t get tricked by convincing literature and websites, or investments which claim to be regulated. Also be wary of someone speaking with authority on investment products.
- Flattery – be on your guard if someone tries to build a friendship with you. They may be trying to lull you into a false sense of security.
"Initially, I thought they were from the same person, but it turned out they were from four or five different companies.”
John ended up handing over £250 to a handful of different firms but when he realised it was all the same company he asked for his money back.
He liked the sound of one of the firms, so he kept his investment with them.
The firm then asked John if they could withdraw cash from his bank account to top-up his initial investment, which he agreed to.
Mark Steward, executive director of enforcement and market oversight at the FCA, said: “Before you invest, do your homework.
"Always check the FCA’s register to make sure you’re dealing with an authorised firm, and use the contact details on the register, not the details the firm gives you, to avoid ‘clones' [where scammers pretend to be from legitimate companies].
"Also check the FCA’s Warning List of firms to avoid. Remember, if in any doubt, don’t invest.”
Earlier this year, Money Saving Expert Martin Lewis got Facebook to donate £3million to help tackle fraudsters after conmen used his face to promote scams.
One The Sun reader lost £100 after falling for one such ad on Facebook.
Brits have also been warned about fake Thomas Cook and Butlin’s Facebook pages that scammers use to steal your information.
While a new type of scam saw an accountant lose £10,000 after fraudsters spied his gym locker PIN and guessed it was the same for his card.
But new rules did come into force last month to make it easier for you to get back cash from fraudsters.
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