**Beware of Cryptocurrency Scams Disguised as Romance**
Federal authorities are warning investors of a growing threat: cryptocurrency scams disguised as romantic relationships. Scammers are using social media, dating apps, and professional networking sites to build trust with their targets, only to convince them to invest in fake cryptocurrency schemes.
These “relationship investment scams” can result in catastrophic financial harm to individuals, with the Securities and Exchange Commission (SEC) recently bringing its first-ever enforcement actions against criminals who stole millions of dollars from investors using fake crypto asset trading platforms.
The use of cryptocurrency has become increasingly popular among criminals, with the Federal Bureau of Investigation (FBI) reporting that consumers lost an estimated $5.6 billion to crypto-related scams in 2023, a 45% increase from the previous year. Investment scams accounted for approximately 71% of those losses.
The most common type of crypto investment fraud is the relationship scam, where criminals pose as romantic interests or acquaintances to gain trust before convincing their victims to invest in fake cryptocurrency schemes.
Victims of these scams can lose significant amounts of money, with one victim reporting losses of “thousands of dollars” after being convinced to invest in bitcoin by a scammer posing as a romantic interest.
To protect yourself from these scams, experts recommend being cautious when meeting people online, doing your research before investing in any opportunity, and being wary of anyone who pushes you to invest quickly or promises unusually high returns.
Additionally, be cautious of anyone who tries to build a romantic relationship with you online, especially if they start discussing investments or financial opportunities early on. Remember, if an investment opportunity seems too good to be true, it likely is.
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