British consumers aged between 20 and 39 are the most likely to get scammed, losing money to online shopping tricks, Ponzi schemes, and rental fraud, a Which? report claims.
The consumer group found 39% of the 448,838 complaints lodged with Action Fraud between Nov 2020 and Dec 2021 came from this demographic.
Crypto scams ranked amongst the top 12 emerging fraud methods used by criminals, together with pyramid schemes, online shopping scams, and rental fraud.
The report described a 34% increase in cryptocurrency scams in the time frame, with Action Fraud receiving 9,458 reports relating to crypto last year, leading to £204.5 million in losses.
“Fraudsters don’t discriminate when it comes to scams, and everyone is susceptible to these growing numbers of crimes, with many young victims being tricked into losing life-changing sums of money,” says Which? money editor Jenny Ross.
Which? says scams often surface through phishing emails or rogue advertisements on social media and search engines.
British crypto advertisements attract censure from ASA
The UK Advertising Standards Authority (ASA) has been locked in a tussle with cryptocurrency companies since Floki Inu ads began appearing around London.
The regulatory body claimed that the crypto companies advertising their products did not bring enough attention to the risks of cryptocurrency and banned FLOKI adverts this month.
The advertising watchdog is tightening the screws further on crypto advertisements, issuing an enforcement notice to more than 50 companies advertising cryptocurrencies to review their advertisements for compliance before publishing.
New rules dictate that British customers must be informed that the crypto industry is unregulated in the UK, and that “the value of investments are variable and can go down.”
Advertisements must also refrain from intimating that crypto investment decisions are trivial or suitable for anyone or “imply a sense of urgency to buy or create a fear of missing out.”
ASA linking up with FCA to fight misleading ads
The finance ministry report claimed that 2.3 million people in the UK now own digital assets. However, understanding surrounding crypto’s inner workings is also declining, which could also worry authorities.
The ASA is working closely with the Financial Conduct Authority (FCA) to combat unclear or deceptive advertisements. Advertisers have until May 2 to comply with the new rules or risk being reported to the FCA.
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