Issuing an ‘urgent warning’ over the threat of crypto scams, Lloyds has revealed that fraudsters are increasingly aiming to take advantage of younger investors.
The banking group has detailed that crypto scams have risen by 23% this year, as it highlighted the need for social media users to remain vigilant.
What is increasingly worrying for the industry is the increase in value of crypto scams, with victims losing and average of £10,741, ‘more than any other type of scam’ according to Lloyds.
Liz Ziegler, Fraud Prevention Director at Lloyds Bank, said: “Investing can be a great way to make money, but you need to make sure your money is going to a trusted, genuine company. Crypto is a highly risky asset class and remains largely unregulated, which makes it an attractive area for fraudsters to exploit. If something goes wrong, you’re unlikely to get your money back.
“Predictably, social media platforms are the main breeding ground for this type of scam, with a mix of bogus ads, fake endorsements and cloned accounts being key to fraudsters’ methods. It’s time these tech firms took responsibility for protecting their customers, stopping scams at source and contributing to refunds when their platforms are used to defraud innocent victims.”
Key to the scams is the inclusion of a mix of bogus ads, fake celebrity endorsements, and targeting through direct messages, as an increasing number of fake adverts emerge into the ecosystem.
The bank also warned that potential victims should be vigilant of all forms of scams as they can be embraced by crypto. These include romance scams or impersonation scams. ‘If someone asks for a payment using cryptocurrency, that should immediately set alarm bells ringing’, Lloyds stated.
Payment Expert Analysis: The warnings from Lloyds come at a crucial time with economic strain taking hold of the UK and technology continuing to evolve within payments. It is vital that consumers are fully aware of the evolution.
