Cryptocurrency Scams on the Rise
Cryptocurrency scams targeting younger victims, particularly those in the 25-34 age group, have seen a 23% increase in 2023, according to a warning issued by Lloyds Banking Group in November 2023. The amount lost by victims has also risen to £10,741 from £7,010 in 2022.
The scammers often recruit their victims on social media platforms like Meta’s Facebook and Instagram in about 66% of cases, with most transactions conducted using the fast payments provider Revolut. However, Revolut is usually not the final destination for the stolen funds, as specified in the warning.
Victims typically make three payments to scammers over an average of 100 days before realizing they have been tricked. Most scams take the form of various fake investment schemes.
How Crypto Investment Scams Work
Crypto investment scams have become increasingly popular and usually involve a fake investment account for a non-existent company, with the fraudster posing as an investment manager. Lloyds warns that scammers sometimes actually set up and register firms to enhance the illusion that their offers are legitimate.
Despite the shift toward investment scams, other common types like pig butchering continue to use cryptocurrencies’ pseudo-anonymity when requesting money from victims. Lloyds has included a short guide on how to protect yourself from crypto scams in its warning notice.
Another type of crypto phishing scam involves scammers posing as journalists seeking to convince their victims to allow malicious JavaScript code to wreak havoc on their devices.
Hot Take: Protect Yourself From Crypto Scams
If you are in the 25-34 age group or are active on social media platforms like Facebook and Instagram, be cautious of cryptocurrency scams. Always verify investment opportunities and never share your credentials with anyone. Stay informed about the latest scam tactics to protect yourself from falling victim to crypto fraud.
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