UK cryptocurrency scams jump 23%, young investors prime targets: Lloyds Bank
One of the Big Four banks in the United Kingdom, Lloyds Bank, has said that reports of cryptocurrency investment scams by victims have surged by 23% in the current year compared to the same period in 2022.
According to a press release published by Lloyds Bank, an increasing number of investors face the threat of falling victim to fraudulent schemes through a wave of fake advertisements posted on social media. Each victim of a cryptocurrency investment scam is losing an average of $13,115 (10,741 British pounds), an increase from $8,562 (7,010 pounds) the previous year. This surpasses losses from other consumer frauds, such as romance scams or purchase scams.
Screenshot of the report from Lloyds Bank. Source: Lloyds BankAccording to the report, individuals aged 25–34 constitute a quarter of all crypto scam victims, making it the most prevalent age group affected. The criminal organizations orchestrating these scams adapt their strategies to capitalize on emerging trends, deceiving more victims into relinquishing their money. Recently, their focus has expanded to include younger investors, enticed by the allure of quick riches through cryptocurrency trading.
Potential cryptocurrency investors usually make an average of three payments before recognizing they’ve fallen victim to a scam. It takes approximately 100 days from the initial transaction date before they report it to their bank. Unfortunately, the funds are usually irretrievable for the bank by this time.
Related: BNB Smart Chain scam losses dropped 75% in Q3: Report
This Lloyds Bank report corresponds 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. This susceptibility makes them vulnerable to scams.
Younger generations actively explore new economic opportunities, laying the foundation for a modernized system and a revitalized version of the “American Dream.” As the report outlines, they see technologies like cryptocurrency as a tool to modernize the system.
Magazine: Eleanor Terrett on impersonators and a better crypto industry: Hall of Flame
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ripple announces tokenized money market fund launching on XRP Ledger
Ripple said a tokenized money market fund has launched on the XRP Ledger.The launch was made possible through a partnership with Archax, an FCA-regulated digital asset exchange.
The Daily: MicroStrategy buys record $5.4 billion in bitcoin, Sky Mavis cuts 21% of its workforce and more
Business intelligence firm and corporate bitcoin holder MicroStrategy purchased another 55,500 BTC for $5.4 billion between Nov. 18 and Nov. 24, according to an 8-K filing with the SEC on Monday.Axie Infinity crypto game developer Sky Mavis is laying off 21% of its workforce, affecting about 50 of its 250 global team, amid a “shift in priorities,” according to CEO and co-founder Trung Nguyen.Solana’s decentralized exchanges surpassed $100 billion in monthly trading volume for the first time, generating a r
Justin Sun's Tron buys $30 million of Trump-backed World Liberty Financial tokens
Tron founder Justin Sun said his firm has bought $30 million worth of World Liberty Financial tokens, the crypto project supported by newly-elected U.S. President Donald Trump.Sun said the purchase made Tron the largest investor in World Liberty Financial.
Elon Musk, the world’s richest man, hits record $348B net worth