Is my crypto investment a scam? How to check it yourself

Is my crypto investment a scam? The signs to look for

A scam often looks professional: a smart website, a dashboard with a growing balance and a helpful contact person. That is why it is rarely about one sign, but about a combination. Many scams revolve around a fake crypto platform: an environment that looks real, but where your money is never invested.

These are the five warning signs we come across most often in practice:

1. No authorisation, or a warning. The firm is not on the FCA Register, or it does appear on the FCA Warning List.
2. A company that is hard to find. No clear company name, no address, only reachable through a chat or an app.
3. Big promises and pressure. A guaranteed-sounding high return and pressure to invest quickly or invest more.
4. Paying before you can withdraw. Suddenly there are fees, a deposit or tax to pay before you get your money. See also paying tax or a deposit before a withdrawal.
5. Requests for sensitive details. Someone wants your recovery phrase, private key or access to your screen.

A firm that is not authorised and still targets you is a serious warning sign. The FCA Warning List is updated regularly, so it is worth checking even if you looked before.

Do you recognise one or more of these signs? Let Paucitas take a look with you. You can ring any time, 24/7, on +31 20 244 5774.

Does a warning sign mean it is a scam?

Not always. Sometimes a platform is disorganised or slow, but legitimate. Sometimes a withdrawal is delayed for an understandable reason. And sometimes there is more going on than you thought. A suspicion is based on signs you see yourself. Certainty only comes when someone establishes independently where your money went.

That is exactly what Paucitas does. We check whether a platform can be verified and follow the route of your money. Sometimes the money is still within reach, sometimes it sits with a platform, and sometimes it turns out not to be a scam. More on this is in who establishes whether a crypto platform is fraudulent.

What do you do if the signs add up?

It is best not to pay in any more, even if you are promised you can withdraw afterwards. Keep your payment records, screenshots and chats. Then let Paucitas look at your situation. What can you do with the Paucitas report? It shows whether money is still available or where it went, and what the next steps are. In a case of fraud, one of those steps is reporting it to Action Fraud, or in Scotland to Police Scotland, and the report is then a strong attachment that sets everything out fully and clearly.

Also watch out for follow-up fraud. Are you approached after a scam by someone who offers to recover your money for a fee? Then be extra careful. See scammed twice with crypto.

What Paucitas does for you

Paucitas looks into everything for you: your transactions, the route of the money, the parties and platforms involved and the documents. Paucitas also reads through all the conversations, emails and other communication, so you get the full picture: a timeline and where all the money went, step by step. Paucitas does all tracing itself, without tracing tools. You receive a report that anyone can follow and understand step by step, including the police, your bank or a solicitor. More signs are covered in recognising a fake crypto platform.

• Costs: every investigation is tailored. You receive a tailored quote in advance, which we go through together, with no surprises.
• Turnaround: from the same day to around two weeks.
• Availability: you can ring 24/7, we answer the form within 1 to 3 hours and email within 24 hours, usually the same day.

Having doubts about your investment? Get in touch for a free intake, or ring +31 20 244 5774. Then you will soon know where you stand.

Sources: FCA Register; FCA Warning List of unauthorised firms; Action Fraud, report fraud; Police Scotland, scams and frauds.