HSBC UK issues cryptocurrency warning

HSBC UK is also encouraging customers to download its ‘HSBC Fraud’ app, where real-time warnings about newly identified scams can be received, to help protect against scammers. The app is free-to-use and available to everyone, whether they use Android or iOS platforms, where they can receive real-time warnings on new scams being spotted.

“Scammers use every opportunity and every trick in the book to prey on people and persuade them to send money, often offering impossible rates of return with minimal risk, or even pretending to be celebrities or ‘influencers’. With the cost of living going up, and people looking to make their money stretch or find new ways to increase their income, scammers are circling.”

David adds: “The general rule is that if an offer seems too good to be true, it probably is. Customers can check if a company is authorised via the FCA website – if it’s not regulated we wouldn’t recommend investing.”

Case Study

Here is the story of one person, who we are calling Melissa, who fell victim to a Cryptocurrency scam. The details are fictitious but are based on a genuine case. All the names, locations and other aspects have been changed to protect the anonymity of the individuals involved.

Melissa had banked with HSBC for 11 years and had never tried her hand at investing before.

She followed a well-known influencer on social media, who portrayed himself as a successful businessman with a focus on promoting investments. This piqued her interest and when she got in touch with him directly online, he persuaded her to start investing in cryptocurrency.

“He began teaching me how to trade and at first it all seemed to go well,” said Melissa. “He was very persuasive.”

The influencer then instructed her to open an account with another financial institution and asked her to link it to a cryptocurrency trading platform. Over time, she made a total of 160 payments amounting to more than £300,000.

Melissa said: “I actually sold many of my assets to help fund these payments because he kept telling me that I would make significant returns on these investments.”

Promising high returns is a common method that fraudsters use to convince customers to invest more.

Many of these payments triggered our fraud detection systems. As a result, we made several calls to Melissa to clarify the reason for the payments — but she told us they were for a variety of things other than investing in cryptocurrency. The fraudster had coerced Melissa into doing this. Again, it’s a common technique that criminals use to try to stop banks from spotting potential fraud.

Melissa eventually found out she’d fallen victim to a cryptocurrency scam when she spoke to a family member about her investments. They checked out the platform online and realised it wasn’t legitimate.

But it was too late to stop the fraudster and Melissa lost all of her money.

What to watch out for

• If someone asks you to move money, but to give your bank another reason to ensure a ‘smoother’ transaction. Fraudsters know payments for investments may attract more scrutiny and will try to avoid it.
• Fraudsters may also ask you to download software in order to access your devices and move money without your knowledge.
• They may impersonate famous personalities on social media or messaging groups, to make their offer look legitimate.
• Some fraudsters may also ask for access to your cryptocurrency accounts, supposedly so they can trade on your behalf. But if you give them your log on details or let them have remote access, they can then move money out of your digital wallets.
• The most high value cases even give a return in the short term, to convince the victims to invest more. Then, after they send larger payments, they suffer even greater losses.

Top tips to keep your money safe

• Before making any investment, always research the company and check theyre FCA regulated.
• Never allow anyone to set up a cryptocurrency wallet, upload ID documents or manage investments for you.
• If in doubt, check with a family member or friend before you do anything.
• Report any suspicious activity. It builds awareness of fraud and helps everybody.

Think you’ve seen something suspicious?

To report a scam or fraudulent activity, get in touch.

• Chat with us in online banking by selecting the ‘Chat’ button
• If you receive a suspicious email or text, report it at phishing@hsbc.co.uk
• Call us using the number on the back of your card, or use the ‘159’ short dial code.

Email: UKPressOffice@hsbc.co.uk

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