NatWest issues warning over cryptocurrency scams – how to avoid being conned

Natwest has issued a warning over cryptocurrency scams (Getty Images)

NatWest has issued an alert to people to beware of cryptocurrency scams.

The bank said it has prevented millions of pounds from being sent to “crypto-criminals”.

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The frauds typically involve criminals posting adverts online carrying a bogus celebrity endorsement on a fake website with an article promoting cryptocurrency.

How do cryptocurrency scams work?

Investors are asked to complete a contact form and the criminal uses these details to follow up with a telephone call.

During the call the fraudster, posing as a cryptocurrency trader, helps the victim open a wallet with a cryptocurrency trading platform and in the process persuades the victim to install remote access software onto their computer.

Initially the victim transfers a small amount of money to the wallet, but over time they are persuaded to invest far larger sums. Remote access software is then used to empty the victim’s cryptocurrency wallet.

NatWest is offering customers free software to help with added online protection and recently introduced a manage my limits feature online which enables customers to restrict the amount of money that can be transferred out of their account.

Jason Costain, head of fraud prevention at NatWest, said: “We have prevented millions of pounds from being sent to crypto-criminals who are exploiting the high levels of interest in the currency. However, consumers should always be alert, especially to the use of fake websites and bogus celebrity endorsements.”

Tips to avoid a cryptocurrency scam

Here are NatWest’s tips to avoid a cryptocurrency scam:

– If you have been contacted by a “trader” promising large profits and offering to help you invest in cryptocurrency, this is a likely to be a scam.

– Always have control of your cryptocurrency wallet. If you did not set the wallet up yourself or a cryptocurrency trader persuaded you to download remote access software onto your computer, this could be a sign of a scam. You should stop making payments immediately.

– Follow FCA advice and check the cryptocurrency firm you are dealing with has been approved by them.