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In 2020
In 2020, the UK saw a 23% increase in cryptocurrency-related scam reports, according to Lloyds Bank. The total amount of reported losses due to these scams had nearly tripled to £2 million, up from 2019’s £733,000.
The UK’s Financial Conduct Authority (FCA) revealed that cryptocurrency scams remained an issue throughout the coronavirus pandemic, as scammers took advantage of volatile markets.
Given the rising number of reports, Lloyds Bank said it had taken steps to protect its customers. The bank said it had implemented automated blocks on 1.7 million accounts to prevent customers from fraudulently trading cryptocurrencies on new and existing accounts.
Lloyds Bank also advised consumers to be aware of the risks associated with investing in cryptocurrencies. It encouraged users to research any investment thoroughly before agreeing to a transaction, as well as to use only trustworthy websites and platforms.
By putting these measures in place, Lloyds Bank hopes to reduce the instance of cryptocurrency scams in the coming year.