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Watch out for this crypto scam

Thinking of investing? Before you part with your money, make sure it is going to a trusted party. 

 

A recent survey from Lloyds Bank highlighted the current risk associated with cryptocurrency – with scams having risen 23% this year.

 

Fraudsters have primarily (66%) been using social media platforms to target young investors through a combination of false advertising, private messages and ‘celebrity’ endorsements.  

 

Victims are losing up to £10,741 on average which is higher than any other category of consumer fraud. 

 

Liz Ziegler, Fraud Prevention Director, Lloyds Bank, said: “Investing can be a great way to make money, but you need to make sure your money is going to a trusted, genuine company. 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.

 

“Predictably, 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. It’s time these tech firms took responsibility for protecting their customers, stopping scams at source and contributing to refunds when their platforms are used to defraud innocent victims.”

 

Stay safe from crypto scams

 

Lloyds Bank has recommended the following advice to avoid falling victim to crypto scams: 

 

  1. Beware of social media: Scammers use social media for fake crypto ads and promises of unrealistic profits. Unexpected investment offers are likely scams.

 

  1. Verify authenticity: Check company details on the FCA website, beware of fake profiles, and research independently before investing. 

 

  1. Look for warnings: Legitimate crypto ads should include risk warnings; avoid offers with free gifts or referral bonuses.

 

  1. Keep information private: Never share login details or cryptocurrency keys. Transferring funds to non-matching accounts means losing control of your money.

 

  1. Secure payment methods: Paying by card provides better protection than bank transfers. Be cautious if asked to pay to an account with a different name.

 

In need of a trusty umbrella provider to help manage your finances? Give Mint a call on 0203 967 6846 today.



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