Crypto Investment Scams Spike 23% in Current Year, Young Investors Targeted: Lloyds Bank Report
Summary:
Lloyds Bank, a leading UK financial institution, has reported a 23% increase in crypto investment scams this year compared to the same period in 2022. The scams primarily occur through fake social media ads, with victims losing an average of $13,115 (£10,741). Younger investors, particularly those between 25 and 34 years old, have become prime targets, with scam artists exploiting their interest in emerging crypto trends. These findings align with a Coinbase report highlighting younger Americans' openness to unconventional financial avenues such as cryptocurrencies, leaving them vulnerable to fraud.
In the United Kingdom, Lloyds Bank, one of the leading financial institutions, has reported a 23% spike in crypto investment fraud this year as opposed to the equal duration in 2022. In a statement issued by the bank, it has been identified that more and more investors are at risk of becoming victims of scam operations primarily delivered through counterfeit ads on social media platforms. Each individual falling prey to such fraudulent crypto investment scams is currently averaging a loss of $13,115 (£10,741), a jump from the last year's average loss of $8,562 (£7,010). Surpassingly, these losses overshadow those incurred in other consumer fraud areas, such as relationship scams or purchase frauds.
Image reflects the Lloyds Bank report Source: Lloyds Bank
The statistics from the report pant a clear picture - About 25% of all crypto fraud casualties fall within the age bracket of 25-34, making them the most affected demographic. The malefactors behind these scam operations constantly revamp their techniques, exploiting emerging trends to trick an increasing number of victims into parting with their hard-earned money. Lately, the focus of these illicit entities has shifted towards younger investors, lured by the prospect of instantaneous wealth through crypto trading.
A typical crypto investor typically makes three payments before identifying the scam, usually reporting it to the bank around 100 days after the primary transaction. Regrettably, by the time these cases come to the bank's notice, recovery of the lost funds becomes exceedingly challenging.
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The data narrated in the Lloyds Bank report aligns with the insights from a report by Coinbase on the crypto industry, which suggests that younger Americans are more open to exploring unconventional routes to financial security, including cryptocurrencies, as compared to their older counterparts, making them more susceptible to fraud.
The younger demographic is actively paving the way for newer economic prospects, consequently ushering in a renewed notion of the American dream. As per the report's details, newer technologies, such as cryptocurrencies, are seen as significant contributors to the modernization of the system.
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Published At
11/10/2023 1:01:50 PM
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