UK cryptocurrency fraud up 23%, young investors prime targets: Lloyds Bank
Lloyds Bank, one of the Big Four banks in the UK, says that reports of cryptocurrency investment scams by victims will rise by 23% in 2022 compared to the same period.
According to a press release from Lloyds Bank, an increasing number of investors are at risk of falling victim to fraudulent schemes due to the wave of fake ads circulating on social media. Each victim of a cryptocurrency investment scam is losing an average of $13,115 (£10,741), an increase of $8,562 (£7,010) from last year. This is higher than other consumer scams such as romance scams or shopping scams.
According to the report, individuals aged 25-34 comprise a quarter of all crypto fraud victims, making it the most prevalent age group. The criminal organizations that orchestrate these scams adapt their strategies and take advantage of new trends to trick more victims into parting with their money. Recently, their focus has been on young investors who are attracted to the quick wealth of cryptocurrency trading.
Potential cryptocurrency investors make an average of three payments before they realize they are the victim of a scam. It takes approximately 100 days from the first transaction date before they report to their bank. Unfortunately, the funds are usually not refundable to the bank at this time.
Related: BNB Smart Chain Fraud Losses Drop 75% in Q3: Report
This Lloyds Bank report matches findings from Coinbase's report on the cryptocurrency landscape, which shows that young Americans are more receptive to unconventional ways to financial freedom, including crypto, than previous generations. This vulnerability makes them vulnerable to fraud.
Younger generations actively explore new economic opportunities, laying the foundations for a modern system and a renewed version of the “American Dream.” According to the report, they see technologies like cryptocurrency as a tool to modernize the system.
Magazine: Eleanor Terrett on fake people and better crypto industry: Hall of Flames
