Guides › Banking Scams and Fraud › Crypto Investment Scam or Exchange Collapse
Crypto Investment Scam or Exchange Collapse
Most crypto activities are not regulated in the UK, and you will not be protected by the Financial Services Compensation Scheme if a crypto firm goes out of business, so you are unlikely to get your money back. If you have lost money to a scam, report it to the FCA and then Report Fraud. Beware of "recovery" offers.
At a Glance
Your Rights
What the rules say, with a link to the official source for each.
Warning Signs and Protection
Crypto Scams
Warning signs: contacted out of the blue, pressure to invest quickly, unrealistic returns. Most crypto activities are not regulated in the UK and you will not be protected by the FSCS if the firm goes out of business. Firms offering crypto must be registered with the FCA or have permission to promote; check the FS Register. Registration does not guarantee FSCS or Ombudsman access. If you have lost money, report it to the FCA and then Report Fraud. source
If You Paid by Bank Transfer
The Reimbursement Scheme
If you were tricked into making a UK Faster Payments or CHAPS bank transfer (an 'APP scam'), the scheme covers payments made on or after 7 October 2024. It covers individuals, very small businesses and charities. source
When You May Not Be Reimbursed
You may not be reimbursed if you were complicit in the fraud or grossly negligent, which the Payment Systems Regulator says is a high bar. The gross negligence exception does not apply to vulnerable customers. source
Time Limits to Know
Miss a deadline and you can lose a right. Check the dates on your own paperwork.
- 13 monthsReport an APP scam or unauthorised paymentWithin 13 months of the payment, but as soon as possible
Steps to Take
Step 1 of 5
Stop sending money and do not pay any "fees" to withdraw.
Step 2 of 5
Report it to the FCA, then Report Fraud.
Step 3 of 5
Tell your bank straight away, especially if you paid by bank transfer.
Step 4 of 5
Ignore anyone offering to recover your money for a fee.
Step 5 of 5
Keep all messages and transaction records.
(Tap the numbers to reveal steps)
Where to Go If It Is Not Put Right
Your options, in order, and when each one applies.
Your Bank's Complaints Team
Always start here, in writing, once your bank has refused or not replied.
Report Fraud (Police)
Report any scam. Your bank may also ask you to report it.
Financial Ombudsman Service
You are unhappy with your bank's final response. It is free, and its limit is 430,000 pounds.
Good to Know
Small things that make your complaint stronger.
Payments to an account in your own name at a crypto exchange are not covered by the bank transfer scam scheme.
Want Help?
If you would like one of our team to look at your problem, our initial case review is free. We cannot guarantee any outcome and we do not give legal advice.
Lead reviewer
Luke Marley
Founder and Lead Reviewer
Luke founded CPUK in 2026 after seeing how hard it is for ordinary people to get problems with companies put right. He oversees our guides and checks them against official sources.
Research by Katie Burt, Co-founder and Operations Lead (17 years in the care sector, including managing services for vulnerable adults), and the CPUK Research Team. Researched with AI-assisted research tools, then checked and corrected by our team.
Last checked: 13 October 2026. We are not paid by the companies we write about. Adverts never affect our guidance. Read our editorial policy.
Sources and official links
- fca.org.uk/consumers/crypto-investment-scams Checked 13 October 2026
- psr.org.uk/information-for-consumers/app-fraud-reimbursement-protections Checked 13 October 2026
- reportfraud.police.uk Checked 12 October 2026