UK Crypto Scams Soar 23%, Young Investors Targeted

UK leading bank Lloyds Banking Group has issued an urgent warning about the growing threat of cryptocurrency scams. The press release dated on November 8, 2023, highlighted the rise in cryptocurrency scams, their prime targets, warning signs, and tips to avoid them.

One of the key findings is the surge in crypto scams. Cryptocurrency investment scams have surged by 23% this year compared to the same period last year. Victims are losing an average of £10,741, more than any other type of scam.

Two-thirds of all investment scams now start on social media, with Instagram and Facebook the most common sources. Fraudsters are using increasingly sophisticated tactics to exploit new trends and trick more victims into parting with their money, as reported.

Regarding the warning signs of crypto scams, the bank warned that fraudsters are using increasingly sophisticated tactics to exploit new trends and trick more victims into parting with their money. In addition to creating fake companies, social media profiles, websites, these scammers don’t mind producing professional content to lure investors.

Fraudsters may use either the illusion of a genuine investment platform or take over an actual investment account in the victim’s own name. Crypto payments can also form part of other types of scam, such as romance scams or impersonation scams, as reported.

Age range of scam targets is also worth noting. Crypto scammers often target young investors aged 25-34, and it takes victims around three payments to realize they’ve been scammed. By then, it’s usually too late to report it to their bank. Most victims at Lloyds Banking send money to a Revolut account, but the money is often sent to other accounts.

Lloyds Bank is also calling for more regulation of the cryptocurrency industry to protect investors from fraud.