FTC Warns That Crypto Romance Scammers Stole $139M In 2021, Along With Hearts

Photo 168769138 © Joaquin Corbalan | Dreamstime.com

Love is in the air, but so is the cologne-drenched reek of con artists. In fact, the US Federal Trade Commission says that love scams and frauds are now at a “record” high.

Ahead of Valentine’s Day, the FTC has released a timely report noting that losses made from romance scams spiked almost 80% in 2021 as opposed to 2020. Scammers specializing in this area made off with US$1.3 billion over the last five years in the United States, and US$547 million of this was absconded with last year.

The most common places these connections were made were on Facebook and Instagram, but if Netflix’s The Tinder Swindler has taught people anything, it’s that such cons can take place pretty much anywhere.

Cryptocurrency’s prevalence, however, now poses a worrying trend. People aren’t just coughing up money for non-fungible tokens, but they’re also parting with their savings to “help” love interests that aren’t who they seem.

In 2021, victims of cryptocurrency-based romance scams lost US$139 million, exceeding “any other payment amount.”

A lot of the time, a scammer would first charm their victim and earn their trust. Then, they’d either introduce them to a cryptocurrency business “opportunity” that seems too good to refuse, or have the victim download a bogus trading app to obtain confidential data.

Victims of cryptocurrency romance scams have reported a median loss of US$10,000.

So, be wary. A healthy relationship is a balance of give and take. If you’re the only one giving—and your contributions almost exclusively involve money—that’s probably a red flag.

[via Mashable and ZDNet, cover photo 168769138 © Joaquin Corbalan | Dreamstime.com]