Security · FCA · UK Reference

Anatomy of a UK Crypto Scam

Published 13 April 2026

Crypto scams evolve quickly, but the underlying psychology is consistent: scammers exploit trust and urgency. This guide covers the scam types most prevalent in the UK — clone firms, shell company schemes, and social engineering — using FCA guidance, Companies House warnings and investigative reporting as sources. No investment commentary is included.

Clone firms copy the name and FCA registration number of legitimate authorised businesses
Shell companies registered at London virtual offices are used to lend schemes an air of legitimacy
The FCA Firm Checker is the primary tool for verifying any financial services firm
Report suspected scams to Action Fraud — sharing information protects others

Matt Oakley

13 April 2026 7 min read Wallets & Security

Wallet & security research

Scam type one

Clone-firm scams

The Financial Conduct Authority (FCA) warns that criminals create clone firms by copying the name, address or registration number of a genuine FCA-authorised financial services business. They build professionally designed websites, run social media adverts and make unsolicited calls — presenting themselves as a firm the victim can verify on the FCA register. This is precisely the point: the registration number is real, but the firm contacting you is not the registered entity.

According to FCA guidance, clone scammers typically:

Provide contact details that differ slightly from the registered firm's official details, or claim the register entry is out of date
Create time pressure — urging victims to invest quickly before a "limited opportunity" closes
Promise high or guaranteed returns and encourage victims to ignore warnings from banks or the FCA

To avoid clone-firm scams, the FCA advises: use the FCA Firm Checker to look up the firm, then independently source the official contact details from the register and call the firm directly before transferring money. Do not use any contact details provided in the unsolicited communication itself.

For context on how scam risk shapes UK bank payment restrictions, see the UK banking directory — several banks impose payment limits specifically in response to scam patterns of this type.

What this means

The patterns used in crypto scams — urgency, social proof, isolation from outside advice — are consistent across almost every reported case. Recognising the structure matters more than knowing specific scam names. This is context, not advice.

Scam type two

Companies House and "London address" schemes

An investigation by The Bureau of Investigative Journalism found that criminals register shell companies at credible UK addresses — typically London virtual offices — to lend an air of legitimacy to crypto investment schemes. There is minimal verification required when incorporating a UK company at Companies House, making the process straightforward to exploit. Researchers identified approximately 168 UK shell companies connected to pig-butchering and other investment scams.

Victims often assume that a company registered at Companies House is a legitimate business. It is not: incorporation is a filing process, not a quality check. The presence of a UK company number, a professional website and a London address does not mean a business is genuine or authorised to offer financial products.

Companies House itself states that it will never request passwords, bank details or authentication codes, and advises people who receive suspicious communications to report them rather than engage.

UK crypto fraud losses remain significant despite FCA financial promotions rules, in part because many scam operations are run from outside UK jurisdiction, making enforcement reactive rather than preventive.

Consistent warning signs

Red flags across UK crypto scams

Unsolicited contact: Genuine investment opportunities do not arrive uninvited via phone calls, text messages, or social media DMs. Any unsolicited crypto investment approach should be treated with scepticism.
Urgency and time pressure: Scammers create artificial deadlines to prevent victims from thinking clearly or seeking a second opinion. There is no legitimate reason for a financial services firm to require an immediate decision.
Guaranteed or unusually high returns: No investment instrument generates guaranteed returns. Any promise of high, risk-free profit is a hallmark of fraud. The FCA warns specifically about social media adverts using celebrity images and unrealistic profit claims.
Unlicensed or unverifiable firms: Check the FCA register before sending money. If a firm is not authorised to conduct the activity it is offering, do not proceed.
Off-domain or slightly-wrong URLs: Clone sites often use domains that resemble the real firm's address. Always type official URLs manually; never follow links from unsolicited communications.
Requests to move to private channels: Asking you to continue a conversation on Telegram, WhatsApp or another platform away from official channels is a consistent pattern in social engineering attacks.
Remote access requests: Any request to install TeamViewer, AnyDesk or similar software should be treated as an attempted theft, regardless of the stated reason.

For the equivalent red flags relating specifically to wallet software and hardware wallet scams, see Part 4 of the wallet series, which covers seed phrase attacks and the Stop, Verify, Confirm approach.

If you suspect a scam

Reporting and next steps

Contact your bank

If you have transferred funds, contact your bank immediately. Banks have fraud teams and may be able to initiate a recall. Speed matters — the faster you act, the better the chance of recovery.

Report to Action Fraud

Action Fraud is the UK's national reporting centre for cybercrime and financial fraud. Reports can be made online at actionfraud.police.uk or by calling 0300 123 2040.

Report to the FCA

The FCA maintains a warning list of known scams and uses reports to identify and act against fraudulent firms. Report via the FCA website. This helps protect others even when individual recovery is not possible.

Warn others

Sharing information about scam methods — particularly the specific tactics used — helps the wider community identify similar approaches. Online communities and financial forums can spread warnings quickly.

Connected topics

Crypto Wallets Part 4: Red Flags and Scam Prevention — wallet-specific attack patterns including phishing via legitimate sender addresses and seed phrase theft.
UK Banking Directory — how UK banks restrict crypto payments in response to scam risk, and which banks block outgoing transfers entirely.
Staking & Yield in the UK — custodial yield products are a common vehicle for scams; understanding the legitimate regulatory framework helps identify fraudulent offerings.