The Federal Trade Commission (FTC) of the United States has issued a consumer warning regarding crypto romance scams online.
The Federal Trade Commission (FTC) advised consumers to “sever all communication” with online romantic partners who may be attempting to fraudulently obtain their funds by employing cryptocurrency investments as a lure.
These fraudsters implement long-term strategies, such as establishing relationships with their victims and gaining their trust, before implementing their schemes.
Romance scams: What are they?
According to the Federal Trade Commission (FTC), romance fraudsters establish emotional bonds with their victims, facilitating their assertions that they are cryptocurrency experts, even though individuals typically do not suspect their romantic partners are con artists. The government agency observed that these fraudsters are “proficient in their field.”
Nevertheless, the Federal Trade Commission (FTC) issued a warning to investors, stating that these con artists have already extorted 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.”
In addition, the Federal Trade Commission (FTC) identified numerous indicators that indicate that an individual’s romantic partner may be a fraudster. These indicators include the assurance of substantial profits, the absence of risk, the assertion that they will teach investment secrets, and the insistence that they send money.
The Federal Trade Commission advises consumers that no investment can be guaranteed to yield profits. In addition, the agency stated that the crypto markets are subject to risks, as are all investments.
The government should report potential crypto romance fraudsters to the FTC and the social platform that the scammers were using by consumers. Furthermore, the Federal Trade Commission (FTC) encouraged individuals who encounter scammers to inform their friends and family about the scheme.
Crypto romance scams are on the rise in Canada
In Canada, crypto scammers are present on dating applications to establish a connection with Canadians during the summer. The Canadian Anti-Fraud Centre (CAFC) observed a significant increase in romance and investment scams on social media, dating applications, and text messages on May 29.
The Canadian Investment Regulatory Organization (CIRO) and the Canadian Assets Futures Commission (CAFC) issued a joint warning regarding scams involving prolonged online communications. Authorities warn Canadians to exercise caution when engaging in conversations regarding cryptocurrency trading and investments.
The government warned that the fraudster would eventually propose investing in an opportunity that frequently involves crypto assets.
