UK bank warns of crypto investment scams

Leading UK financial institution Lloyds Bank recently released an urgent warning regarding the increasing threat of cryptocurrency investment scams.

The alert highlighted a considerable surge in scams using digital assets as a theme, with a rise of 23% in reported incidents since last year.

UK savers with concerns regarding the veracity of investment opportunities often seek out financial advice in Shropshire, Hampshire, and other parts of the country. As well as providing protective policies, experts like wealth managers can also run an unbiased view over potential assets, and determine if fraudsters are behind the opportunity, saving their clients from a financial misstep.

The recent report found that the average loss for each victim financially was around £10,741, marking a substantial spike from the £7,010 recorded in 2022. The figure also indicated that financial losses for cryptocurrency scams were higher than from all other types of consumer fraud for the period.

In detail, it observed that 66% of such investment scams come from social media channels, specifically Facebook and Instagram. On these platforms, fraudsters use a range of nefarious tactics, ranging from bogus adverts to false celebrity endorsements, and often communicate with duped investors via direct messaging.

The research found that the main targets of digital asset scams were younger investors, who were typically aged between 25 to 34. However, all demographics were discovered to be considered fair game by fraudsters.

Quick and easy access to wealth through crypto trading is always used as the primary lure in scams such as these.

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