Lloyds Bank Warns of Increasing Crypto Scams as Victims Report Losses Surge
Lloyds Bank, one of the United Kingdom’s Big Four banks, has released a press release warning the public about a significant increase in cryptocurrency investment scams. According to the release, reports of victims falling prey to fraudulent schemes have surged by 23% in the current year compared to the same period in 2022. The bank highlighted that criminal organizations are using fake advertisements on social media platforms to deceive individuals into investing in non-existent or fraudulent cryptocurrency opportunities.
The average loss reported by victims of cryptocurrency investment scams has also increased, with each victim losing an average of $13,115 (10,741 British pounds), compared to $8,562 (7,010 pounds) the previous year. These losses now surpass those from other consumer frauds, such as romance scams or purchase scams. The bank emphasized that these scams have become a growing threat, especially among individuals aged 25–34, who constitute a quarter of all crypto scam victims.
The report from Lloyds Bank also revealed that victims usually make an average of three payments before realizing that they have fallen victim to a scam. Unfortunately, by the time they report the scam to their bank, approximately 100 days have passed since the initial transaction date, making it difficult for the funds to be retrieved.
This surge in crypto scams among younger individuals aligns with findings from a Coinbase report on the cryptocurrency landscape, indicating that younger Americans are more receptive to unconventional avenues for financial independence, including crypto, than older generations. The report highlighted the susceptibility of younger generations to scams and their active exploration of new economic opportunities, including cryptocurrency.
Lloyds Bank’s warning comes as a reminder for individuals, especially younger investors, to exercise caution when engaging in cryptocurrency investments. With the allure of quick riches through cryptocurrency trading, it is important for investors to thoroughly research and verify the legitimacy of investment opportunities before committing any funds. The bank also urged individuals to report any suspicious activity or potential scams to their financial institutions promptly.
As the cryptocurrency landscape continues to evolve and attract a new generation of investors, it is crucial for the public to remain vigilant against potential scams and fraudulent schemes. Lloyds Bank’s report serves as a timely warning for individuals to stay informed and cautious when navigating the world of cryptocurrency investments. As technology and finance intersect in new ways, it is essential for investors to prioritize security and due diligence to protect themselves from falling victim to crypto scams.