NatWest Implements Limits on Cryptocurrency Transfers to Combat Fraud
NatWest recently announced that they have implemented daily and monthly limits on payments from customer accounts to cryptocurrency exchanges in an effort to reduce their exposure to crypto fraud. Customers will now be restricted from transferring more than £1000 ($1213) per day or £5000 ($6066) in a month to exchanges.
The UK lender expressed concerns that even legitimate cryptocurrency exchanges are being used as a gateway to risky investments in digital currencies, which can result in the loss of significant amounts of money. Stuart Skinner, NatWest’s head of fraud protection, cautioned customers to exercise caution and ensure they have sole control of their cryptocurrency wallets to avoid falling victim to scams.
According to NatWest, men over the age of 35 are most susceptible to making risky investments, especially amidst the current cost-of-living crisis. The bank highlighted the alarming statistic that British consumers lost £329m to cryptocurrency scams last year, making investment fraud the top money-making scheme for cyber-criminals, who raked in over $3.3bn in 2022.
The FBI also issued a warning about the rise in cryptocurrency investment scams, revealing that fraudsters pocketed over $2bn from victims in the previous year alone. These scams typically start with a romance or confidence scam before transitioning into cryptocurrency investment fraud. Criminals build trust with their victims and offer fake expertise or affiliations with experts to lure them into investing in fake websites or apps controlled by the scammers.
In these fraudulent schemes, known as “pig butchering” scams, fraudsters guide victims through the investment process by showcasing fake returns to entice them to invest more money. When victims attempt to cash out, they are often asked to pay additional taxes or fees, which only benefit the scammers.
NatWest’s decision to impose limits on cryptocurrency transfers underscores the growing concern over the prevalence of crypto fraud and the need to protect customers from falling victim to these scams. By being vigilant and cautious, individuals can safeguard their investments and avoid becoming targets of cyber-criminals in the volatile world of cryptocurrencies.