June 24, 2024
FTC Warning Talks About Crypto Romance Scams
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FTC Warning Talks About Crypto Romance Scams

The United States Federal Trade Commission (FTC) has issued a consumer warning concerning the rise of romance scams involving cryptocurrencies. The FTC Warning advised consumers to “cut off contact” with online love interests who might be attempting to steal their funds by using crypto investing as bait. These scammers employ long-term tactics, taking time to get to know their victims and build relationships before executing their schemes.

Scammers Build Emotional Connections to Exploit Victims

The FTC warning explained that although people typically don’t suspect a love interest of being a scammer, romance scammers create strong emotional connections with their victims, making it easier for the victims to believe the scammers’ claims of being cryptocurrency experts. The government agency noted that these scammers are “good at what they do” and have already taken millions of dollars from unsuspecting 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.”

These scammers are skilled at creating believable personas and gaining the trust of their victims before convincing them to invest in cryptocurrency schemes.

The FTC warning highlighted several signs that someone’s love interest might be a scammer, including promises of large profits, guarantees of no risk, claims of secret investment knowledge, and persuading the victim to send money. The FTC reminded consumers that no one can guarantee profits and emphasized that all investments, including those in the crypto markets, carry risks.

Authorities Urge Reporting and Awareness

The government agency urged consumers to report potential crypto romance scammers to the FTC and the social platform the scammer used. Additionally, the FTC encouraged individuals who encounter scammers to warn their friends and family about the scam to prevent further victims.

Similar warnings have been issued in Canada, where crypto scammers are active on dating apps, especially during the summer. On May 29, the Canadian Anti-Fraud Centre (CAFC) reported a surge in romance and investment scams on social media, dating apps, and text messages. In response, the Canadian Investment Regulatory Organization (CIRO) and the CAFC issued a joint warning about these scams, which often involve extended online communications. The authorities cautioned Canadians to be wary of individuals who discuss crypto trading and investments.

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

The FTC and Canadian authorities are urging the public to stay vigilant and recognize the red flags associated with these scams. By raising awareness and reporting suspicious activities, they hope to curb the impact of crypto romance scams and protect potential victims from financial losses.

Image by Gerd Altmann from Pixabay

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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