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11/06/24
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U.S. Federal Trade Commission Warns People About Romance Scams Involving Crypto
On June 10, the U.S. Federal Trade Commission (FTC) warned people about romance scams involving crypto. According to Colleen Tressler of the Division of Consumer and Business Education, scammers establish an emotional connection with people to make it easy for them to believe that they’re an expert in cryptocurrency investment.
Romance scammers contact their victims randomly on social media, become friends and lovers with them, and end up talking about money. Pretending to care about the financial well-being of their victims, they ask to help them invest in the cryptocurrency markets or teach them.
They promise huge profits, say there is no risk, talk about teaching investment tricks and eventually explain how to send them money, especially through gift cards and payment apps such as Apple Pay, CashApp, PayPal, and Zelle, money wiring firms, or even crypto.
“No matter what they say, if someone you meet online says they want to help you invest in cryptocurrency, it’s an investment scam. If you think someone you met on social media is a scammer, cut off contact,” reads the consumer alert article.
Similarly, the Canadian Anti-Fraud Centre (CAFC) and the Canadian Investment Regulatory Organization (CIRO) jointly issued a media statement on May 28 to inform Canadians about the rise in the threat of sophisticated scams which usually involve crypto.
“The CAFC is also noticing an increase in romance/investment scams, a method colloquially known as “pig butchering”. Victims are contacted on dating apps/websites or social media by fraudsters attempting to develop a relationship to gain trust,” reads the media statement.
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