K customers of Chase will no longer be able to make a cryptocurrency payment next month, as the bank clamps down on rising levels of fraud.
JP Morgan’s consumer bank told its customers that it will block any transactions related to crypto assets in a bid to help keep people’s money safe.
From October 16, customers will receive a declined transaction notification if they attempt to make a crypto-related transaction via their debit card or by outgoing bank transfer.
“If you’d still like to invest in crypto assets, you can try using a different bank or provider instead – but please be cautious, as you may not be able to get the money back if the payment ends up being related to fraud or a scam,” the bank told its customers.
It comes amid a rise in reported crypto scams affecting people in the UK.
We’ve seen an increase in the number of crypto scams targeting UK consumers, so we have taken the decision to prevent the purchase of crypto assets on a Chase debit card or by transferring money to a crypto site from a Chase account
UK consumer losses to crypto fraud spiked by more than 40% over the year to March compared with the previous year, surpassing £300 million for the first time, according to data from Britain’s fraud reporting agency Action Fraud.
Earlier this year Santander UK said it had seen a “worrying” rise in celebrity-endorsed cryptocurrency scams, where famous faces are misused on social media to promote fraudulent investment opportunities.
Several British banks have restricted their customers from buying crypto assets amid concerns over the risks of the digital currency.
HSBC and Nationwide earlier this year prevented its customers from using a credit card to buy crypto, while NatWest moved to limit the amount people can transfer to crypto exchanges.
A spokesman for Chase, which has banned purchases outright, said: “We’re committed to helping keep our customers’ money safe and secure.
“We’ve seen an increase in the number of crypto scams targeting UK consumers, so we have taken the decision to prevent the purchase of crypto assets on a Chase debit card or by transferring money to a crypto site from a Chase account.”