Lloyds has warned that the growing number of UK consumers investing in cryptocurrency are at risk of being defrauded by a “wave” of fake adverts being posted to social media platforms.

Analysis conducted by the bank revealed that 66 per cent of all crypto investment scams begin on social media, with Meta-owned Instagram and Facebook found to be the most common platforms.

Lloyds said the scams currently rising across social media include a mix of “bogus ads, fake celebrity endorsements, and targeting through direct messages.”

Those aged between 24 and 34 were found to be the most common victims of such scams, making up around a quarter of all incidents. Lloyds noted that this demographic was more likely to be drawn in by ‘get rich quick’ schemes.

“Investing can be a great way to make money, but you need to make sure your money is going to a trusted, genuine company,” said Liz Ziegler, fraud prevention director at Lloyds Bank.

“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.”

Ziegler went on to state her belief that it was time 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.

Since launching its crypto advertising rules regime on 8 October, the FCA revealed on 25 October it had already issued 221 alerts over potentially misleading crypto promotions.

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