Starling Bank will once again allow its customers to transfer money to cryptocurrency platforms, ending a temporary ban imposed last week.
The mobile bank says it will resume cryptocurrency transfers on June 23 after an improved payment verification process.
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Starling was among several UK banks—including Monzo and Barclays—that suspended payments to cryptocurrency exchanges amid rising fears that they have become a hotbed for financial crime.
A statement from Starling bank read:
“This is a temporary measure that we’ve taken to protect customers. This is not just an issue for Starling but all banks. We apologise for the inconvenience that this has caused for some customers. We will be reversing this measure as we roll out additional checks specifically for payments to crypto exchanges.”
Barclays and Monzo have not yet commented regarding their suspension.
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By GlobalDataNatWest ‘urgent’ cryptocurrency scam alert
Last week NatWest said it had received a “record number” of reports about cryptocurrency scams between January and March 2021.
The alert warns account holders to make sure they have direct control of any digital wallet that is set up to handle transactions, and to beware of promises of big profits.
One common scam involves fake celebrity endorsement, the bank said.
Typically, potential investors are prompted to fill in an online contact form and then encouraged over the phone to set up a cryptocurrency wallet – but unknown to them the scammer installs remote access software on their device, granting them access to it as well.
The victim is then persuaded over time to invest ever larger amounts – until the criminal empties the wallet.
Britons got taken for £60m in social media investment scams last year
Another ruse is the “get rich quick” cryptocurrency investment opportunity, the bank added.
“We have prevented millions of pounds from being sent to crypto-criminals who are exploiting the high levels of interest in the currency. However, consumers should always be alert, especially to the use of fake websites and bogus celebrity endorsements,” said Jason Costain, NatWest’s head of fraud prevention.
UK consumers lost more than £ 60m in the past year to social media investment fraud. About 50% or more of such scams involved digital currencies.
