Crypto Fraud Surges: Young Investors Prime Targets

Victim reports of cryptocurrency investment fraud have increased by 23% in the current year compared to the same period in 2022, according to Lloyds Bank, one of the Big Four banks in the United Kingdom.

According to a press release from Lloyds Bank, a surge in fake advertisements spreading on social media exposes an expanding group of investors to the risk of falling for fraudulent schemes.

Screenshot of the report from Lloyds Bank Source: Lloyds Bank

In contrast to the previous year, the average loss per victim of cryptocurrency investment scams has risen from $8,562 (£7,010) to $13,115 (£10,741).

This exceeds the monetary amounts lost to other types of consumer fraud, such as romance schemes or purchase scams. Based on the findings of the report, it is evident that the age cohort of 25 to 34 comprises the largest proportion (25 individual victims) of crypto scams.

To exploit emerging trends and procure additional funds from victims, the criminal organizations that are orchestrating these schemes modify their tactics.

Young investors, enticed by the promise of instant wealth through cryptocurrency trading, have become a recent addition to their target demographic.

Before becoming cognizant of their deception, prospective cryptocurrency investors typically complete an average of three payments.

They report the transaction to their bank approximately one hundred days after the date of the initial transaction. The bank typically has no recourse but to forfeit the funds at this juncture.

Younger Americans, relative to older generations, are more receptive to unconventional means of achieving financial independence, such as cryptocurrencies, according to this Lloyds Bank report and the findings of a Coinbase report on the cryptocurrency landscape.

They are vulnerable to schemes due to this susceptibility. The foundation for a modernized system and a reconfigured American ideal is established by the proactive pursuit of novel economic opportunities by younger generations.

Cryptocurrencies are regarded as a means to modernize the system, according to the report.