Crypto News- Lloyds Bank, one of the prominent Big Four banks in the United Kingdom, has revealed a 23% surge in reports of cryptocurrency investment scams this year compared to the same period in 2022.
Lloyds Bank Reports a 23% Increase in Cryptocurrency Scams in the UK, Highlighting Young Investors as the Primary Focus
As highlighted in a press release from Lloyds Bank, an escalating number of investors find themselves at risk of falling prey to fraudulent schemes propagated through deceptive advertisements on social media. Each victim of a cryptocurrency investment scam is now facing an average loss of $13,115 (equivalent to 10,741 British pounds), marking a significant increase from the previous year’s figure of $8,562 (7,010 pounds). Notably, these losses surpass those incurred from other forms of consumer fraud, including romance scams or purchase scams.
The report underscores that individuals aged 25–34 constitute a quarter of all victims of crypto scams, making it the most prevalent age group affected. Criminal organizations orchestrating these scams continuously adapt their strategies to exploit emerging trends, successfully deceiving more victims into parting with their funds. Of late, there has been a notable shift in focus towards younger investors who are enticed by the promise of quick riches through cryptocurrency trading.
In a concerning pattern, potential cryptocurrency investors typically make an average of three payments before realizing they have fallen victim to a scam. Moreover, it takes approximately 100 days from the initial transaction date before victims report the incident to their bank. Tragically, by this time, the funds are often irretrievable for the bank.
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