The United States Federal Trade Commission (FTC) has issued a consumer alert regarding romance scams that exploit cryptocurrencies.

The FTC has advised consumers to "cut off contact" with any online romantic interests who seem to be using crypto investment opportunities as a lure to misappropriate their funds.

These scammers are known to engage in prolonged interactions to establish trust and relationships before initiating their fraudulent schemes.

According to the FTC, while it's uncommon for people to suspect their romantic partners of deceit, these romance scammers are skilled at forming emotional bonds to make their claims of being cryptocurrency specialists more credible.

The agency recognized that these fraudsters are adept in their deception tactics.

Nevertheless, the FTC has alerted investors about these con artists, who have already swindled millions of dollars from their victims. The FTC wrote:

“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.”

The FTC also outlined several indicators that a romantic interest might be a scammer, such as promising significant returns, assuring no risks, claiming to disclose investment secrets, and coaxing victims to transfer money.

The agency emphasized that no investment, including those in crypto markets, can guarantee profits and all investments carry risks.

The FTC encouraged consumers to report suspected crypto romance scammers to both the FTC and the social media platforms involved. They also recommended notifying friends and family about potential scams.

In Canada, there is a notable presence of crypto scammers on dating platforms during the summer months.

On May 29, the Canadian Anti-Fraud Centre (CAFC) observed an increase in romance and investment scams across social media, dating apps, and text messages.

The Canadian Investment Regulatory Organization and the CAFC jointly alerted the public about the dangers of scams that often start with extended online conversations.

The authorities cautioned Canadians to be vigilant of individuals who discuss crypto trading and investments.

“Over time, the scammer will suggest investing in an opportunity, often involving crypto assets,” the government advised.

Sources:

https://cointelegraph.com/news/ftc-warns-crypto-romance-scams

https://consumer.ftc.gov/consumer-alerts/2024/06/what-do-if-your-online-love-interest-offers-teach-you-how-invest-your-money