Fraudsters are offering people the chance to invest in the leasing of computer servers from companies that also specialise in Bitcoin Mining.
Bitcoin is a digital-only currency traded from computer to computer and is usually used to pay for goods online. Bitcoin has no central authority and is not backed by governments or banks.
In this new type of methodology, people are cold called using high pressure tactics and persuaded to invest into a new form of alternate investment. Fraudsters claim this investment will be subject to huge growth because of the rise in demand from major international companies that require computer server space.
Victims are promised to receive a guaranteed 5% monthly increase on any amount they invest as their returns are based on the capital generated from the major companies utilising the services.
In addition to the server leasing scam, scammers claim that the new start up companies they are investing in also specialise in Bitcoin mining with the servers that are owned. In reality, none of this is true.
Protect yourself against investment fraud
- If you’re considering any type of investment, always remember: if it seems too good to be true, then it probably is. High returns can only be achieved with high risk.
- If you get a call out of the blue, be wary; if in doubt don’t be polite, just hang up.
- Take the time to seek independent legal or financial advice before making a decision.
- Always check the credentials of the company you’re dealing with. Check for known fraudulent organisations at the FCA.
All the reports taken by Action Fraud are sent to the NFIB who collate and analyse intelligence on fraud – the NFIB then send crimes to law enforcement agencies for investigation, disruption and prevention purposes.
To report a fraud and receive a police crime reference number, call Action Fraud on 0300 123 2040 or use our online fraud reporting tool.