The US Federal Trade Commission (FTC) has issued a warning to consumers about romance scams involving cryptocurrencies.
The FTC has urged consumers to “cut ties” with online romantic interests who may try to steal their funds using cryptocurrency investments as bait.
These scammers use long-term tactics, taking the time to get to know their victims and build relationships before putting their plans into action.
What are love scams?
The FTC said that while people typically don’t suspect a lover is scamming them, scammers create emotional bonds with their victims, making it easier for them to believe the malefactors’ claims of being cryptocurrency experts.
The government agency noted that these scammers are “good at what they do.”
However, the FTC has warned investors that these scammers have already stolen millions of dollars from unsuspecting victims. The FTC stated that:
“They want to help you invest your money in the crypto markets, or they say they can teach you how to do it. You might think they have your financial success in mind, but that’s not the case. They are only interested in their own gain.”
Additionally, the FTC has highlighted several warning signs that could indicate someone’s interest may turn out to be a scam attempt. These signals include the promise of big profits, the guarantee of not taking risks, the claim to teach investment secrets and the persuasion to send money.
The FTC reminded consumers that no one can guarantee profits in any investment. Furthermore, the agency said that all investments present risks, including crypto markets.
The government agency urged consumers to report potential “crypto romance” scammers to the FTC and the social media platform used by the scammer. Additionally, the FTC urged those who come across scammers to alert friends and family about the scam.
Crypto love scams on the rise in Canada
In Canada, crypto scammers are taking to dating apps, hoping to make a splash. On May 29, the Canadian Anti-Fraud Center (CAFC) detected a surge in romance and investment scams on social media, carried out via dating apps and text messages.
The Canadian Investment Regulatory Organization (CIRO) and the CAFC have issued a joint warning on scams involving prolonged online communications. Authorities have warned Canadians to be wary of people discussing crypto trading and investing.
“Over time, the scammer will suggest investing in an opportunity, often involving crypto assets”warns the government.
Translation by Walter Rizzo
