The United States Federal Trade Commission (FTC) has identified an increase in romance scams targeting the crypto community in the US. The FTC has clearly asked people to cut themselves off from internet lovers who may be discussing investment ideas with them, especially regarding cryptocurrencies and other digital assets. The trade regulator reminded people that no one can guarantee a sure profit on crypto investments, given the volatile nature of the asset.
This week, the FTC issued an official warning about the rise of crypto dating scams. In this category of scams, scammers contact potential victims through dating apps under the pretense of starting a romantic relationship. After gaining the trust of their targets, these scammers trick their victims into investing in dubious or fake crypto assets with the promise of high returns. Once they receive the necessary investment, these scammers usually disappear, leaving their victims in the lurch.
“No one thinks their internet love will cheat on them, but scammers are good at what they do. They make an emotional connection with you so you’re more likely to believe that they’re an expert on investing in cryptocurrencies, for example. But that internet love is a scam. People have lost tens of thousands — sometimes millions — of dollars to romance scams,” the FTC wrote in its official blog post on June 10.
As part of these growing crypto scams, the FTC has warned users of being promised risk-free investments and unconventional methods of transferring funds online. The financial watchdog further noted that people should strictly not trust foreigners teaching them how to invest in cryptocurrencies.
“If you think someone you met on social media is a scammer, stop contact. Tell the social media platform, then tell the FTC,” the blog added.
However, this is not the first time that love scams have been listed as a dangerous category that leads to huge financial losses. Back in February this year, a 37-year-old Indian woman currently living in Philadelphia, USA, reportedly lost $450,000 (roughly Rs. 3.7 crore) in a cryptocurrency romance scam.
In the same month, Australia’s National Fraud Center reportedly warned citizens to be extra vigilant against romance scams that resulted in losses of over $40 million (roughly 335 million rupees) in 2023.
According to the FTC, “This all starts with someone contacting you — seemingly at random — on social media. But they have done their homework, checked your profile and other information on the platform. They want to help you invest your money in 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.”
In March 2024, the FBI claimed that crypto investment scams had increased by 53 percent last year. Many countries around the world are now accelerating efforts to introduce regulations to oversee the crypto sector and impose penalties on criminals who make the sector unsafe for innocent investors. The United Arab Emirates is among the first countries to set final rules outlining penalties for crypto fraudsters, which include up to five years in prison and a fine of AED 1 million (roughly 2 million rupees).
