{"id":88471,"date":"2023-03-14T10:59:00","date_gmt":"2023-03-14T10:59:00","guid":{"rendered":"https:\/\/cloudnewshub.com\/?p=88471"},"modified":"2023-03-14T10:59:00","modified_gmt":"2023-03-14T10:59:00","slug":"natwest-introduces-limits-on-crypto-trading-to-prevent-fraud","status":"publish","type":"post","link":"https:\/\/cloudnewshub.com\/?p=88471","title":{"rendered":"NatWest introduces limits on crypto trading to prevent fraud"},"content":{"rendered":"
<\/div>\n

Retail bank NatWest<\/a> is to implement daily and monthly limits on the amount of money customers may pay into cryptocurrency exchanges<\/a> in an attempt to protect them from fraud and scams, and prevent them from losing \u201clife-changing\u201d sums of money.<\/p>\n

Going forward, customers will only be able to transfer up to \u00a31,000 daily, and up to \u00a35,000 every 30 days. The bank said over \u00a3329m was lost by UK consumers to cryptocurrency scams in 2022, and it is likely that the cost-of-living crisis is driving growing amounts of fraud, with cyber criminals using promises of high returns to entice investors \u2013 men over 35 are considered most at risk.<\/p>\n

Cryptocurrency scams often exploit a lack of understanding over how cryptocurrency markets work, and their inherent unpredictability, to convince victims to transfer money to accounts on legitimate exchange platforms. These accounts are often set up in victims\u2019 names by the fraudsters or by the victims themselves under pressure.<\/p>\n

\u201cYou should always have sole control of your cryptocurrency wallet \u2013 nobody else should have access. If you didn\u2019t set the wallet up yourself or can\u2019t access the money, then this is likely to be a scam,\u201d said NatWest head of fraud protection Stuart Skinner.<\/p>\n

\u201cWe have seen an increase in the number of scams using cryptocurrency exchanges and we are acting to protect our customers,\u201d he added.<\/p>\n

Some of the more common cryptocurrency scams<\/a> include fake bitcoin investment schemes, where scammers claim to be investment managers asking for an upfront fee to begin trading with the promise of millions of pounds of potential returns, and rug-pull scams, which involve scammers promoting a new cryptocurrency or non-fungible token<\/a> (NFT) project before absconding with the invested funds.<\/p>\n

So-called pig butchering scams<\/a> \u2013 which rely on social engineering, and are often romance themed, to lure victims \u2013 are also increasingly common.<\/p>\n

Although the government plans to legislate<\/a> to give the Financial Conduct Authority (FCA) regulatory powers over the promotion of certain crypto assets, the regulator\u2019s current position is that such assets remain unregulated and carry a very high degree of risk, highlighted by the high-profile failure of several crypto firms in 2022<\/a>.<\/p>\n

The FCA has repeatedly warned that consumers should be prepared to lose all their money if they buy crypto assets, and moreover, are unlikely to be eligible for any compensation under the Financial Services Compensation Scheme if they do lose money.<\/p>\n

If they choose to invest in spite of this guidance, NatWest set out three steps that crypto investors can take to reduce their chances of being caught up in a scam:<\/p>\n