Lloyds Bank issues urgent warning of crypto scams in the UK

A recent press release issued by Britain’s Lloyds Bank shares that crypto scams that have surged 23% over the course of the year.

Young investors between the ages of 25 and 34 years old are said to be the most prevalent target for these attacks.

Social media home base

The press release goes on to report victims of crypto investment scams are facing an average loss of £10,741, marking an increase from the previous year’s £7,010. 

Additional data goes on to state that 66% of all investment scams originate on social media platforms, with Instagram and Facebook emerging as the primary sources.

Crypto investors were then said to make an average of three payments before realizing they were involved in a scam, meaning that it would often take 100 days from the date of the first transaction before a report was issued to the bank. Unfortunately, by the time it was, Lloyds shares that the money is typically long gone.

Tightening the grip

These findings come alongside a Nov. 9 update about the UK tightening its regulatory grip on the cryptocurrency market, a reality that has been in the works for months now. Under these provisions, the UK aims to create responsibility for the marketing of crypto assets and ensure proper guidelines are in place for the use of stablecoins.

Among these rules, implemented by the Financial Conduct Authority (FCA), crypto firms must abide by a specific cooling-off period for new investors to contemplate their decisions, avoid “refer a friend” bonuses, and ensure there clear risk warnings in all advertisements.