Lloyds Bank: UK Sees 23% Increase in Cryptocurrency Scam Reports
According to a recent report by Lloyds Bank, the UK has seen a substantial 23% increase in reports of scams that involve cryptocurrencies between November 2017 and December 2018. The most common scams involve investment schemes that promise huge returns, Ponzi schemes, unauthorised transactions and ransomware attacks.
As more and more individuals and businesses become involved in cryptocurrency, so does the prevalence of these types of scams. The report found that 300 of the reports led to an average loss of £7,000, with the majority of the scams occurring online.
The Financial Conduct Authority (FCA) has also recently issued warnings about the potential risks of investing in new forms of digital investments, such as initial coin offerings and cryptocurrencies. They warned of the lack of regulation in the cryptocurrency markets and the potential for consumers to become victims of fraud.
The report underlines the call for greater consumer protection and more education around cryptocurrency scams. Government and law enforcement agencies must be proactive in their approach to combatting such issues, including increased communication to the public about the potential risks, in order to ensure that the population of users don’t become victims of these types of scams.