FTC Issues Alert on Cryptocurrency Romance Scams
The U.S. Federal Trade Commission (FTC) has released a cautionary statement regarding cryptocurrency romance scammers who provide investment advice. The FTC stresses the dangers involved and urges swift reporting and vigilance to safeguard others. “They create an emotional bond with you to make you more inclined to believe that they are an expert in cryptocurrency investment,” the regulator pointed out.
The FTC’s warning, published by Colleen Tressler from the Division of Consumer and Business Education, sheds light on the deceitful methods employed by scammers who masquerade as romantic partners to exploit victims financially.
According to the FTC, scammers follow this pattern:
They establish an emotional connection with you so you’re more likely to believe that they’re an expert in cryptocurrency investing. However, that online romantic interest is actually a scammer. Individuals have suffered significant financial losses, ranging from tens of thousands to millions of dollars, due to romance scams.
Typically, the scam initiates with an unsolicited message on social media. Scammers meticulously analyze your profile to cultivate trust and camaraderie. Once a bond is established, the conversation transitions to investments, with the scammer asserting a commitment to your financial safety. In truth, their primary aim is personal financial gain.
If an individual you meet online offers guidance on cryptocurrency investments, it is probably a scam, as highlighted by the FTC. These fraudsters promise substantial returns, assert that there is no risk, and offer to educate you on investment strategies. Nevertheless, all investments involve inherent risks, and assurances of returns are deceptive, emphasized the regulator. Scammers frequently request immediate money transfers through gift cards, payment apps, or cryptocurrency—a common tactic among fraudsters. In the event of such solicitations, cease contact promptly, report the scammer to the social media platform, and notify the FTC.
If you encounter such scenarios, the FTC recommends discontinuing all communication with the individual, reporting them to the social media platform, and submitting a report to the FTC. Furthermore, sharing this alert on social media can aid in shielding others from falling prey to scams.
Have you been a victim of a romance scam? Share your experience in the comments below.
