FTC Warns of Romance Scams Luring People Into Bogus Cryptocurrency Investments

The U.S. Federal Trade Commission (FTC) has warned about romance scams utilizing cryptocurrency. Scammers use romance as a hook to lure individuals into bogus investments, particularly crypto, the federal company defined. “2021 numbers are almost 5 occasions these reported in 2020, and greater than 25 occasions these reported in 2019,” stated the FTC.

FTC Warns About Crypto Romance Scams

The U.S. Federal Trade Commission (FTC) issued a warning Thursday about crypto-related romance scams. The FTC is an impartial company of the U.S. authorities whose principal mission is the enforcement of civil U.S. antitrust regulation and the promotion of shopper safety.

“New information from the Federal Trade Commission present that extra customers than ever report falling prey to romance scammers. Consumers reported shedding $547 million in 2021 alone,” the FTC wrote, including:

A rising development in 2021 was scammers utilizing romance as a hook to lure individuals into bogus investments, particularly cryptocurrency.

“Consumers who paid romance scammers with cryptocurrency reported shedding $139 million in whole in 2021, greater than every other fee quantity,” the federal company detailed. “2021 numbers are almost 5 occasions these reported in 2020, and greater than 25 occasions these reported in 2019.”

In addition, the FTC famous that the median loss for customers who reported paying a romance scammer with cryptocurrency in 2021 was almost $9,770.

The Federal Trade Commission defined that in romance scams:

People are led to consider their new on-line companion is a profitable investor who, earlier than lengthy, casually presents funding recommendation.

Besides cryptocurrency, one other common funding methodology promoted by these romance scammers includes overseas alternate (foreign exchange) buying and selling.

However, the commonest methodology of fee to romance scammers shouldn’t be cryptocurrency. “About 28% of people that reported shedding cash on a romance rip-off in 2021 stated they paid with a present card or reload card, adopted by cryptocurrency (18%),” the FTC clarified.

The federal company has issued a number of warnings about scams involving cryptocurrency this 12 months. In January, it warned about crypto scams utilizing social media and ATMs.

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