Police issued a warning after fraud related to cryptocurrency markets “increased significantly”.
Victims have reported losing their savings after being exploited by criminals who pose as brokers and can help them make lucrative profits.
Fake celebrities and glamorous social media posts are among the tactics scammers use.
The value of Bitcoin, the most famous cryptocurrency, has risen sharply in recent months.
This has piqued the interest of people hoping to make money from Bitcoin or similar programs.
And scammers and scammers have benefited from the hopeful new investors.
The issues have become so significant that North Wales Police issued a warning this week urging people to be careful when considering putting money in cryptocurrencies.
The troop said: “Victims have reported looking for investment opportunities online only to be contacted by fraudulent investment brokers of fake investment firms who promise high returns with very little risk.
“Brokers employ various tactics to pressure the victim to invest quickly and promise returns that are too good to be true.
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“The brokers coach victims in buying cryptocurrency and instruct victims to transfer the crypto on the pretext that the funds will be invested on behalf of the victim.
“Victims are often told how well their investment is doing, which encourages them to send even more money. In some cases, victims have spent their savings and even borrowed large sums to make additional investments.
“Only when victims try to withdraw the money will the broker either cut off contact with the victim or be told that they will have to pay additional high fees to release the investment.”
“Even if the discharge fees are paid, victims are given a number of excuses as to why they cannot get their money back.”
The troop said victims were often attracted to investing in fake companies by running fake celebrities or wealth ads from seemingly successful investors in ads that run online and on social media.
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MoneySavingExpert founder Martin Lewis previously complained that such a company was falsely claiming his support.
The Financial Conduct Authority (FCA) has warned that any purchase or investment in cryptocurrencies is typically risky and that those who invest in such products should be prepared to lose all of their money.
On the subject of matching items
As of January, all UK cryptoasset firms have been required to be registered with the FCA and any organization that works without registration is committing a crime.
Investors are therefore advised to check the FCA registry before investing.