The FTC has warned consumers about the rising threat of romance scams involving cryptocurrencies. The agency urges caution and provides tips to identify potential scammers.
The United States Federal Trade Commission (FTC) has issued a consumer warning about the increasing prevalence of romance scams involving cryptocurrencies. The FTC advises consumers to "cut off contact" with online love interests who might be trying to steal their funds under the guise of crypto investing.
Understanding Romance Scams
Romance scams involve fraudsters who build emotional connections with their victims over time, making it easier for the victims to trust them. According to the FTC, these scammers often pose as cryptocurrency experts, promising to help their victims invest in the crypto market. The agency highlighted that these scammers are adept at what they do and have already defrauded victims of millions of dollars.
Warning Signs of a Scam
The FTC identified several warning signs that someone’s online love interest might be a scammer:
Promises of Large Profits: Scammers often promise significant returns on investments.
Guaranteed No Risk: They claim that the investments are risk-free.
Offering Investment Secrets: They suggest they have exclusive knowledge about crypto investments.
Requests for Money: They persuade victims to send them money, allegedly to invest in the crypto markets.
The FTC emphasized that no investment can guarantee profits and all investments, including cryptocurrencies, carry risks.
Reporting and Preventive Measures
The FTC urged consumers to report any potential crypto romance scammers to the agency and the social platform where the scam occurred. Additionally, the FTC asked consumers to warn their friends and family about these scams to prevent further victimization.
Crypto Romance Scams in Canada
The warning from the FTC follows similar alerts in Canada. On May 29, the Canadian Anti-Fraud Centre (CAFC) reported a surge in romance and investment scams on dating apps, social media, and text messages. The Canadian Investment Regulatory Organization and the CAFC issued a joint warning, advising Canadians to be cautious of individuals discussing crypto trading and investments during online interactions.
The scammers in Canada, much like those in the US, take time to build trust before suggesting investment opportunities, often involving crypto assets. Authorities warn that these extended online communications are a red flag for potential scams.
Protecting Yourself from Scams
To protect yourself from romance scams, the FTC recommends the following steps:
Be Skeptical of Online Love Interests: If someone you meet online starts discussing investments or asks for money, be cautious.
Verify Information: Cross-check the information provided by your online contact and look for inconsistencies.
Avoid Sending Money: Never send money or share your financial information with someone you haven’t met in person.
Report Suspicious Activity: If you suspect a scam, report it to the FTC and the platform where the interaction occurred.
Romance scams involving cryptocurrencies are a growing concern, and the FTC's warning highlights the importance of vigilance and caution when engaging with online love interests. By recognizing the signs of a scam and taking preventive measures, consumers can protect themselves from falling victim to these fraudulent schemes.
(EZRA REGUERRA, COINTELEGRAPH, 2024)