In a recent report, Lloyds Bank stated that the UK has experienced a 23% increase in reported cryptocurrency scams in 2020. The increase comes at a time when the value and popularity of digital currencies, such as Bitcoin, have skyrocketed.
The reports noted that the typical cryptocurrency scam begins with a deception and often involves the victim being tricked into giving away personal information or making payments to fraudsters.
The report also warned that scammers are now setting up fake eCommerce sites and online exchanges to try and steal people’s money or personal information.
The UK’s Financial Conduct Authority (FCA) had issued a warning earlier this year about cryptocurrency scams. The FCA stated that “Scammers can be very persuasive, but you should always question why you are being asked to invest in these types of complex products and be on guard for scams.”
In order to help protect users, Lloyds Bank has Call Warnings and Email Alerts that can be set up to warn customers of potentially fraudulent activity. The bank has also launched a Crypto Checker tool for customers to help them assess the credibility of online crypto trading websites.