Lloyds Bank, one of the Big Four institutions in the United Kingdom, has reported that victim reports of cryptocurrency investment scams have increased by 23% between the same period in 2022, with young investors as prime targets.
As per a press release issued by Lloyds Bank, a growing proportion of investors are confronted with the peril of succumbing to fraudulent schemes facilitated by a proliferation of counterfeit advertisements disseminated via social media.
An increase from the previous year, when the average loss per victim of cryptocurrency investment scams was $8,562 (7,010 pounds), the current amount is $13,115 (10,741 British pounds). This exceeds damages caused by alternative types of consumer deception, including romance scams and purchase scams.
The report indicates that individuals between the ages of 25 and 34 comprise 25% of all victims of cryptocurrency scams, making this age group the most commonly impacted.
Criminal organizations responsible for these schemes modify their tactics to exploit developing patterns, convincing more victims to surrender their funds. Young investors, enticed by the promise of instant wealth through cryptocurrency trading, have become a recent addition to their target demographic.
On average, prospective cryptocurrency investors perpetrate three payments before becoming aware of the fraudulent activity. They report the transaction to their bank approximately one hundred days after the initial transaction date. Sadly, the funds are typically irretrievable for the bank by this point.
This Lloyds Bank report aligns with a Coinbase report concerning the cryptocurrency industry, which suggests that younger Americans are more open to non-traditional methods of attaining financial autonomy, such as cryptocurrencies than older people. Due to this vulnerability, they are susceptible to schemes.
Younger cohorts proactively investigate novel economic prospects, establishing the groundwork for an updated system and a reinvigorated iteration of the “American Dream.” They view technologies such as cryptocurrencies as a means to modernize the system, as detailed in the report.
