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UK cryptocurrency scams jump 23%, young investors prime targets: Lloyds Bank

UK cryptocurrency scams jump 23%, young investors prime targets: Lloyds Bank

Reports from Lloyds Bank, one of the Big Four banks in the United Kingdom, indicate that victims of cryptocurrency investment scams have surged by 23% in the current year compared to the same period in 2022.

The bank’s press release highlights that an increasing number of investors are at risk of falling victim to fraudulent schemes through fake advertisements on social media. The average amount lost by each victim of a cryptocurrency investment scam has increased to $13,115 (10,741 British pounds) from $8,562 (7,010 pounds) the previous year, surpassing losses from other consumer frauds.

Screenshot of the report from Lloyds Bank. Source: Lloyds Bank

The report indicates that individuals aged 25–34 account for a quarter of all crypto scam victims, making it the most prevalent age group affected. Criminal organizations behind these scams are adapting their strategies to target more victims, particularly younger investors who are enticed by the potential for quick riches through cryptocurrency trading.

On average, potential cryptocurrency investors make three payments before realizing they have fallen victim to a scam. It takes approximately 100 days from the initial transaction date before they report it to their bank, at which point the funds are usually irretrievable.

Related: BNB Smart Chain scam losses dropped 75% in Q3: Report

The Lloyds Bank report aligns with findings from a Coinbase report on the cryptocurrency landscape, which indicates that younger Americans are more receptive to unconventional avenues for financial independence, making them vulnerable to scams.

Youthful generations are actively exploring new economic opportunities, leading the way for a modernized system and a revitalized version of the “American Dream.” They see technologies like cryptocurrency as a tool to modernize the system.

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