Crypto scam warning

A new survey has revealed that cryptocurrency scams have surged by 23% this year as fraudsters target younger investors.

According to the findings from Lloyds Bank, as many as 66% of all investment scams start on social media, with Instagram and Facebook the most common sources.

These scams include a mixture of false ads, fake celebrity endorsements and direct messages.

The average amount lost by each victim of a crypto investment scam is £10,741 (up from £7,010 last year). This is more than any other type of consumer fraud, such as romance or purchase scams.

Liz Ziegler, Fraud Prevention Director, 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.”

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