According to a new warning from Lloyds Bank, people are at risk of being defrauded due to fake adverts posted on social media.
The number of cryptocurrency investment scams reported by victims so far this year has risen by 23% compared to last year. The average amount of money lost by each crypto victim is £10,741 - more than any other type of consumer fraud. The organised criminal gangs behind scams are constantly evolving their tactics to exploit new trends to trick more victims. The most common age range for crypto scam victims is 25 to 34 year olds, who make up a quarter of all cases.READ MORE: Martin Lewis gives exact time to renew car insurance to get it cheaper
Top tips to stay safe from crypto investment scams: Liz Ziegler, Fraud Prevention Director at Lloyds Bank said: “Investing can be a great way to make money, but you need to make sure your money is going to a trusted, genuine company. Crypto is a highly risky asset class and remains largely unregulated, which makes it an attractive area for fraudsters to exploit. If something goes wrong, you’re unlikely to get your money back.
“Predictably, social media platforms are the main breeding ground for this type of scam, with a mix of bogus ads, fake endorsements and cloned accounts being key to fraudsters’ methods. It’s time these tech firms took responsibility for protecting their customers, stopping scams at source and contributing to refunds when their platforms are used to defraud innocent victims.
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