Lloyds Bank, a major retail and commercial bank in the U.K., has issued an “urgent warning” about the growing threat of cryptocurrency scams. “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,” the British bank cautioned.
Lloyds Bank’s ‘Urgent’ Crypto Warning
Lloyds Bank, a prominent retail and commercial bank in the U.K., issued an “urgent warning” regarding the “rising threat of crypto scams” on Friday.
The British bank noted that crypto investment scams have increased by 23% this year, with victims losing an average of £10,741 ($13,343), more than any other type of consumer fraud. “A growing number of British investors risk being defrauded by a wave of fake adverts posted on social media,” the bank stated, noting that 66% of all investment scams start on social media, with Instagram and Facebook being the most common sources.
Lloyds Bank cautioned:
It’s important to remember that fraudsters will go to great lengths to convince investors that they are the real deal. This can include setting up fake companies, social media profiles, and websites to clone real firms. They may even produce investment literature that looks professional.
“It’s important to remember that cryptocurrency payments can also form part of other types of scam, such as romance scams or impersonation scams. If someone asks for a payment using cryptocurrency, that should immediately set alarm bells ringing,” the British banking institution additionally warned.
Liz Ziegler, Fraud Prevention Director at Lloyds Bank, commented: “Investing can be a great way to make money, but you need to make sure your money is going to a trusted, genuine company.” Emphasizing that “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,” the director cautioned:
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.
What do you think about Lloyds Bank’s warning regarding crypto investment risks and scams? Let us know in the comments section below.