Lloyds Bank reports a 23% increase in cryptocurrency scams in the UK, with a particular focus on young investors as their prime targets.
The bank notes that prospective cryptocurrency investors typically make about three payments before realizing they've been ensnared in a scam.
Lloyds Bank, one of the prominent banks in the UK, has revealed a significant surge of 23% in reports of cryptocurrency investment scams compared to the previous year. The rise is attributed to a proliferation of deceptive schemes through fake social media advertisements, resulting in victims losing an average of $13,115 (10,741 British pounds) – a notable increase from the previous year's $8,562 (7,010 pounds). These losses surpass those from other common consumer frauds like romance scams or purchase scams.
Screenshot of the report from Lloyds Bank. Source: Lloyds Bank
According to the bank's report, individuals aged 25–34 make up a significant portion of victims of cryptocurrency scams, constituting a quarter of all cases. Criminal organizations behind these scams continually adapt their strategies to exploit emerging trends, particularly targeting younger investors who are lured by the potential for swift gains through cryptocurrency trading.
It's highlighted that potential cryptocurrency investors typically make about three payments before realizing they've fallen prey to a scam. Unfortunately, by the time they report these incidents to their bank, approximately 100 days have elapsed, rendering the funds largely irretrievable.
Coinbase's findings on the cryptocurrency landscape align with Lloyds Bank's report, indicating that younger Americans exhibit a greater openness to unconventional paths for financial independence, including involvement in the crypto space. This receptiveness makes them more susceptible to scams, reflecting their active exploration of novel economic opportunities and their perception of technologies like cryptocurrency as transformative tools for modernizing the system.