U.S. Federal Trade Commission warns of crypto romance scams

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As a researcher with a background in cybersecurity and online fraud, I’ve seen firsthand how romance scams involving cryptocurrencies have become increasingly common and sophisticated. The FTC’s recent advisory on this issue is a stark reminder of the risks we all face when engaging with strangers online.

The FTC, which is the United States’ Federal Trade Commission, has issued a warning to the general public about an increase in romance scams where cryptocurrencies are frequently used as part of the deceitful schemes.

As a researcher, I’d suggest paraphrasing the Monday notice from the FTC in this way: “In a recent announcement, I learned that the Federal Trade Commission (FTC) encourages Americans to be cautious when receiving investment advice from online romantic interests.”

“The FTC pointed out that people rarely suspect their online romantic connection is a scammer’s ploy, yet scammers excel in deception.”

As a crypto investor, I’ve come across various types of scams in the digital currency world, but none as heartbreaking and deceitful as romance scams, also known as pig butchering scams. In these schemes, fraudsters pose as potential love interests, creating an emotional bond with their victims. However, the ultimate goal isn’t to find true love – it’s to manipulate them into making fraudulent cryptocurrency investments. The scammers then disappear with the victims’ hard-earned funds. It’s essential for every investor to be cautious and vigilant in their online interactions, as these scams can be incredibly convincing and devastating.

In the realm of cryptocurrencies, it seems deceptive practices have unfortunately become commonplace. According to a study conducted by the University of Texas between January 2020 and February 2024, an astounding $75 billion was reportedly taken by such scams.

As a crypto investor, I’ve come across various scams in this space, and it’s essential to be aware of the methods used by fraudsters to carry out their schemes. In her advisory, Colleen Tressler from the Division of Consumer and Business Education shed light on these deceitful practices.

As a crypto investor, I’ve come across scams where the attackers try to build an emotional bond with their targets. They present themselves as knowledgeable and experienced in the world of cryptocurrencies to deceive victims into trusting them with their investments.

The commission pointed out that scammers frequently assure investors of large, risk-free returns. Yet, it emphasized that every investment involves some level of risk and the claimed profit guarantees are baseless.

As an analyst, I would rephrase it as follows: The FTC cautions that these con artists conduct thorough background checks on potential victims. By doing so, they can tailor their approach to deceive effectively and gain your trust. Before long, you may find yourself discussing financial matters with someone who has presented themselves as a trusted friend.

If the regulator has warned you against it, refrain from transferring any money, be it traditional currency or cryptocurrency, at the request of suspicious individuals met on social media. Instead, end all communication with them if you suspect they may be fraudsters.

The notice also urged users to file a report with the FTC if affected by such a scam.

Romance scams have made the headlines on several occasions. 

In February 2024, I came across a heart-wrenching case of a Philadelphia resident who lost a substantial fortune to cryptocurrency scammers. These deceitful individuals managed to gain the woman’s trust and introduced her to a fraudulent crypto trading application. Eventually, they persuaded her into emptying her savings account.

Due to the increasing frequency of such attacks, organizations like the Federal Bureau of Investigation (FBI) and the Commodity Futures Trading Commission (CFTC) have felt compelled to take regulatory action.

The Commodity Futures Trading Commission (CFTC) accused crypto exchange Debiex on January 20th, claiming that some of its insiders had deceived customers by forging friendly and close connections with them. These individuals were subsequently manipulated into opening trading accounts with the exchange.

Debiex allegedly solicited $2.3 million from five customers.

Prior to the 2023 Valentine’s Day, the FBI had previously issued a cautionary notice concerning a significant increase in romance scams.

In April 2024, the Brooklyn District Attorney’s Office successfully investigated and dismantled a deceitful scheme that had fooled numerous people throughout the US.

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2024-06-11 13:03