Lloyds Bank, one of the UK’s four largest banks, said reports of cryptocurrency investment scams involving victims have surged by 23% this year compared with the same period in 2022.
According to the press release publish According to a report from Lloyds Bank, more and more investors are facing the threat of falling victim to scam schemes due to a wave of false advertising posted on social media. The average loss per victim of cryptocurrency investment scams was $13,115 (£10,741), up from $8,562 (£7,010) the previous year. This exceeds the losses caused by other consumer frauds such as romance scams or purchase scams.
According to the report, people aged 25 to 34 account for a quarter of all cryptocurrency scam victims, making them the most commonly affected age group. The criminal organizations behind these scams adapt their strategies to take advantage of emerging trends to trick more victims into handing over their funds. Recently, their focus has expanded to include young investors who are attracted by the lure of getting rich quickly by trading cryptocurrencies.
Potential cryptocurrency investors typically have to make an average of three payments before they realize they have fallen victim to a scam. It takes approximately 100 days from the date of the original transaction for them to be reported to the bank. Unfortunately, banks are often unable to recover the funds at this point.
related: BNB Smart Chain fraud losses fell 75% in third quarter: report
The report from Lloyds Bank aligns with findings from a Coinbase report on the cryptocurrency landscape, showing that younger Americans are more receptive than older generations to non-traditional paths to financial independence, including cryptocurrencies. This sensitivity makes them vulnerable to scams.
Younger generations are actively exploring new economic opportunities, laying the foundation for a modern system and a resurgent American dream. As the report states, they see technologies like cryptocurrencies as tools for system modernization.
Magazine: Eleanor Terrett on Copycats and a Better Crypto Industry: Hall of Fire
Svlook
