Lloyds Bank, one of the major British banks, has warned UK customers of a sharp rise in cryptocurrency-related scams. According to a report from Chainalysis last month, the number of cryptocurrency fraud reports in the UK nearly tripled in 2020, growing by 23%.
Scammers are adapting their techniques to spread disinformation and target those looking to invest in virtual currencies. Other tactics include impersonating well-known individuals, using false and misleading investment offers, or asking for “startup fees” in exchange for access to services.
Lloyds has urged customers to remain vigilant when dealing with investments related to virtual currencies, and provided information on warnings signs of fraudulent activity that customers should look out for. Customers are encouraged to never provide any personal or financial information when dealing with cryptocurrency-related activities, and to always look for ongoing financial advice for investment-related decisions. Additionally, customers should not be swayed by claims of quick and easy profits.
