Cryptocurrency Allowance
The allowance is our way of protecting you against the recent increase in crypto scams out there. It’s set at £5,000 in a rolling 30-day period, which we can’t change.
Any crypto payments you try to make that would take you over your allowance won't go through.
How the rolling 30-day period works
A rolling 30-day period is a time window that always covers the most recent 30 days, moving forward one day at a time. Think of it like a window that slides along a calendar – wherever you are today, it looks back at the last 30 days.
When a payment you made falls out of the 30-day window, your available allowance increases by that amount.
Being clear on what cryptocurrency is
Cryptocurrency, often shortened to ‘crypto’, is a form of currency that exists digitally or virtually. Unlike a physical currency (think cash), cryptocurrencies don’t have a centralised issuing or regulating authority, instead using a decentralised system to record transactions.
Crypto assets are unregulated so if something goes wrong, money held in crypto wallets isn’t protected by the Financial Services Compensation Scheme.
We recommend checking out The Financial Conduct Authority (FCA)’s page on the basics of what crypto is and how it works.
Crypto scams and how they tend to work
After an initial text or social media message, or even an advert that you’ve seen online somewhere, scammers will tempt you with high returns for a small investment.
They’ll often pressure you to make these payments by saying things like “it’s a limited time deal” or a “special price.” Sometimes they’ll even use fake celebrity endorsements to make things seem genuine.
If you don’t have one already, they might also encourage you to set up an account for cryptocurrency. They may tell you they’ll manage an account for you, or ask you to send the money directly to their crypto wallet.
How to spot a crypto scam
It can be particularly hard to know who to trust with crypto, and fraudsters are getting craftier all the time. Look out for signs you’re dealing with a fraudster.
Talking to you about money making opportunities in messaging groups or social media.
Convincing you to open a cryptocurrency account.
Asking you to buy cryptocurrency and send it to an account that they say they’ll manage for you.
Offering to pay you a small return on your first few trades so you invest more money.
Asking you to share access to your bank account or to download remote access software to your device that lets them see and control what you’re doing.
Encouraging you to lie to your bank or the cryptocurrency exchange you’re buying from.
Telling you to ignore warning messages from your bank.
Keep your money safe from crypto scams
Here are some things you can do if you suspect someone’s trying to scam you. Remember, if you’re at all unsure, contact us right away.
Check the Financial Conduct Authority (FCA) Warning List for exchanges and companies they’ve flagged as being linked to scams.
Never let anyone set up a cryptocurrency account for you. Don’t download software that lets someone see or control your device.
If someone tells you to lie to your bank or ignore warning messages, that’s a clear sign they’re trying to scam you. Stop whatever you’re doing and get help fast.
Don’t be pressured into making fast decisions about what to do with your money, even if they say it’s a limited time deal. Genuine businesses will never do that.
Be wary of adverts online promising high returns on investments in cryptocurrencies.
Assume that if you’re contacted out of the blue about an investment opportunity, which could be a cold-call, an email or a DM on social media, it’s a scam.
Get advice from trusted friends, family members or independent professional advice services (accredited by the FCA) before making a significant financial decision. Even genuine investment opportunities can be high-risk and there’s no harm in doing some checks first.
If we stop a payment because it would take you over your allowance but someone (typically someone you’ve just met) is telling you to move the money somewhere else before moving it into cryptocurrency, stop what you’re doing and assume this person is trying to scam you.
If you feel like you’ve potentially been affected by fraud please report this via this form, or if it’s happening right now, contact us immediately.
