Lloyds Bank Reveals 23% Surge, Social Media Tactics

A central bank in the United Kingdom, Lloyds Bank, reports that the number of cryptocurrency scams has increased by 23% since last year.

Young people are the target of social media fraud, according to the firm, which estimates that victims lose £10,741 ($13,183.72) on average per scheme. This is incomparable to purchase scams, romance scams, and other forms of consumer deception.

The bank stated in a recent press release, “Remarkably, the analysis found that 66% of all investment schemes originate on social media, with Instagram and Facebook being the most common sources.”

Such scams can originate from direct messages, counterfeit advertisements, or prominent endorsements.

Scammers are reportedly refining their strategies to specifically target individuals between the ages of 25 and 34 with get-rich-quick schemes, which appeal to younger demographics more than anything else.

6This cohort represents a quarter of all cases of cryptocurrency fraud.

Additionally, these types of frauds are difficult to detect in progress, as the typical victim completes three payments and waits one hundred days after the initial transaction to notify their financial institution. At this stage, it is typically exceedingly difficult to recover stolen funds.

Lloyds has identified two prevalent types of cryptocurrency investment fraud. The first is “deception,” in which a fraudster poses as an investment manager and promises to generate profits on behalf of the victim through investments made with their funds.

Specific illusion schemes may entice victims to send the con artist additional funds by presenting them with a bogus investment account that exhibits expanding profits after their initial payment.

“The takeover” is the second type of fraud. Con artists deceive individuals into establishing cryptocurrency accounts on a trading platform (Coinbase, Binance, etc.) in exchange for their login credentials.

Vulnerable individuals may also be duped into relinquishing control of their cryptocurrency wallets or directly transferring cryptocurrency to the fraud artist.