The United States Federal Trade Commission (FTC) has issued a warning about the increasing prevalence of romance scams that involve cryptocurrencies. These scams, also known as pig butchering scams, involve attackers pretending to be potential love interests and ultimately convincing victims to invest in fraudulent cryptocurrency schemes. A recent study by the University of Texas revealed that over $75 billion has been lost to these scams between January 2020 and February 2024. The FTC is advising the public on how to handle situations where online romantic interests offer investment advice, as scammers often establish an emotional connection with victims to gain their trust.
The FTC emphasized that scammers involved in romance scams often promise high returns with little to no risk, but these guarantees are false, and all investments carry risks. These bad actors typically do a background check on victims to say the right things and gain their trust, leading them to invest money. The FTC advised against transferring any funds, whether fiat or cryptocurrency, if requested by such parties, and recommended cutting off contact if suspicions arise. Victims are also encouraged to report any such scams to the FTC to help combat this growing issue.
Romance scams have made headlines in recent years, with individuals falling victim to these schemes and losing significant amounts of money. In one case, a Philadelphia woman lost $450,000 in cryptocurrency to scammers who pitched a fraudulent crypto trading app and convinced her to drain her savings. Regulatory bodies like the FBI and the Commodity Futures Trading Commission (CFTC) have taken action against these scams, with the CFTC charging a crypto exchange for duping customers into opening trading accounts. The FBI issued a warning before Valentine’s Day in 2023 about the surge in romance scams, and the Brooklyn District Attorney’s Office cracked down on a similar scam in April 2024 that defrauded individuals across the United States.
As romance scams leveraging cryptocurrencies continue to rise, it is essential for individuals to be cautious when engaging with online romantic interests, especially if they offer investment advice. The FTC’s advisory serves as a reminder to remain vigilant and skeptical of promises of high returns with little risk, as these are often tactics used by scammers to deceive victims. By cutting off contact and not transferring any funds if suspicions arise, individuals can protect themselves from falling victim to these fraudulent schemes. Reporting any instances of romance scams to the FTC can also help in targeting these criminals and preventing others from being affected. As regulatory bodies and law enforcement agencies take action against these scams, it is crucial for the public to remain informed and alert to avoid being exploited.
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