Lloyds Bank Issues 'Urgent Warning' on Growing Threat of Crypto Scams

Lloyds Bank Issues 'Urgent Warning' on Growing Threat of Crypto Scams

Lloyds Bank, a major retail and commercial bank in the UK, has sounded the alarm on the escalating danger of crypto scams, emphasizing the urgent need for vigilance. “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 Flags 23% Surge in Crypto Scams 

Lloyds Bank, a major retail and commercial bank in the UK, issued an “urgent warning” on the “growing threat of crypto scams” on Friday.

Highlighting a 23% surge in crypto investment scams this year, Lloyds Bank disclosed that victims are facing substantial losses, averaging £10,741 ($13,343), surpassing other consumer fraud categories. The British banking giant underscored the prevalence of fake advertisements on social media platforms, pinpointing Instagram and Facebook as primary sources, with 66% of investment scams originating there. The bank stated:

“A growing number of British investors risk being defrauded by a wave of fake adverts posted on social media.”

Lloyds Bank cautioned investors, stressing:

"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 scams, 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 also warned.

Social Media Platforms are Breeding Ground for Scammers 

The Fraud Prevention Director at Lloyds Bank, Liz Ziegler, voiced concern over the risky and unregulated nature of cryptocurrencies: “Investing can be a great way to make money, but you need to make sure your money is going to a trusted, genuine company.” She emphasized 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 is your take on Lloyds Bank’s warning regarding crypto investment risks and scams? Please share your thoughts and opinions in the comments section below.