FTC Issues Consumer Warning on Romance Scams Involving Cryptocurrencies

The United States Federal Trade Commission (FTC) has issued a consumer warning regarding romance scams that involve cryptocurrencies. The FTC advises consumers to immediately cease contact with any online love interests who might be attempting to steal their funds under the guise of crypto investments.

Understanding Romance Scams

Romance scams involve fraudsters who build emotional relationships with their victims over time, eventually exploiting these connections to gain access to the victims' finances. The FTC emphasizes that these scammers are highly skilled at creating convincing personas and emotional bonds, which makes it easier for them to deceive their victims. They often present themselves as cryptocurrency experts willing to help with investments.

The FTC has highlighted that these scams have already resulted in millions of dollars in losses for unsuspecting victims. The agency warned:

“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 well-being in mind, but they don’t. They only care about their own financial well-being.”

Warning Signs of a Crypto Romance Scam

The FTC has identified several red flags that may indicate someone's online love interest is a scammer:
- Promises of Large Profits: Scammers may promise unusually high returns on investments.
- Guarantees of No Risk: Claims that there is no risk involved in the investment.
- Offers to Teach Investment Secrets: Scammers might offer to share exclusive investment strategies.
- Requests for Money: Persuading the victim to send money for various investment opportunities.

The FTC reminds consumers that no investment, including cryptocurrency, can guarantee profits and that all investments come with inherent risks.

Reporting and Preventing Scams

The FTC urges consumers to report any suspected crypto romance scams to the FTC and the social media platform where the scammer initiated contact. Additionally, the agency advises consumers to inform their friends and family about these scams to raise awareness and prevent further victimization.

Surge in Crypto Romance Scams in Canada

Similar trends are being observed in Canada, where the Canadian Anti-Fraud Centre (CAFC) has reported a rise in romance and investment scams on social media, dating apps, and through text messages. The CAFC, along with the Canadian Investment Regulatory Organization (CIRO), has issued warnings about extended online communications that eventually lead to discussions about crypto trading and investments.

The Canadian authorities caution that scammers typically build relationships over time and then suggest investing in what appears to be lucrative opportunities involving crypto assets.

Conclusion

Romance scams, particularly those involving cryptocurrencies, are a growing threat. The FTC's warning aims to protect consumers by educating them on the tactics used by scammers and urging vigilance. By recognizing the warning signs and reporting suspicious activities, consumers can help combat these fraudulent schemes and protect themselves and their loved ones from financial loss.