The U.S. Federal Trade Commission (FTC) has issued a warning regarding the surge in romance scams involving cryptocurrencies. The FTC's advisory, released on Monday, aims to educate Americans on handling situations where an online romantic interest offers investment advice, highlighting the sophisticated tactics scammers use to defraud victims.

Romance scams, also known as pig butchering scams, see attackers posing as potential love interests to trick victims into making fraudulent cryptocurrency investments before disappearing with the funds. The FTC notes that these scams have become common in the crypto sector, with a University of Texas study revealing over $75 billion lost to such schemes between January 2020 and February 2024.

Colleen Tressler of the FTC's Division of Consumer and Business Education explained that scammers establish emotional connections to convince victims of their expertise in cryptocurrency, often promising high, risk-free returns. The FTC emphasizes that these guarantees are false and all investments carry risks.

Scammers typically conduct background checks on victims to tailor their approach and gain trust, eventually steering conversations toward money. The FTC advises against transferring any funds to such parties and urges users to cut off contact if they suspect a scam. Affected individuals are encouraged to report incidents to the FTC.

The rise in these scams has also drawn attention from other regulatory bodies. The FBI and the Commodity Futures Trading Commission (CFTC) have taken action, with the CFTC charging crypto exchange Debiex for duping customers through intimate relationships and soliciting $2.3 million from five customers. The FBI previously issued a warning about romance scams before Valentine's Day 2023.

Recent incidents, such as a Philadelphia woman losing $450,000 in cryptocurrency and the Brooklyn District Attorney’s Office cracking down on a widespread scam, underscore the growing prominence of these attacks and the need for heightened awareness and regulatory intervention.