Image of Lloyds Bank report on 23% jump in UK cryptocurrency scams, with young investors as prime targets.
UK cryptocurrency scams jump 23%, young investors prime targets: Lloyds Bank

AI Detects Fake Cryptocurrency Investment Scams

Lloyds Bank, one of the Big Four banks in the United Kingdom, has reported a 23% surge in cryptocurrency investment scams this year compared to the same period in 2022. Victims of these scams are losing an average of $13,115 (10,741 British pounds) per incident, surpassing losses from other consumer frauds.

According to the report, 25–34 year olds are the most vulnerable age group, with criminals adapting their strategies to capitalize on emerging trends. Fake advertisements posted on social media often entice younger investors with the promise of quick riches through cryptocurrency trading.

Potential investors usually make an average of three payments before realizing they’ve been scammed. By the time they report it to their bank, the funds are usually irretrievable. AI is increasingly being used to detect fake cryptocurrency investment scams, as well as generate fake advertisements.

This Lloyds Bank report aligns with the findings of a Coinbase report on the cryptocurrency landscape, which suggests that younger Americans are more open to unorthodox paths to financial autonomy, such as crypto, than older generations. This receptiveness makes them more vulnerable to scams.

Younger generations are actively looking for new economic opportunities, which could lead to a modernized system and a renewed version of the “American Dream.” As the report outlines, they view technologies like cryptocurrency as a means to modernize the system.

AI detect fake, AI fake generator, AI for fake, and other AI-related technologies are being used to combat scams and create web 3.0 websites. Metaverse and Web 3.0 are similar technologies that offer examples of web 3.0 technologies.

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