FTC and Canadian Authorities Warn Against Increasing Crypto Romance Scams
Summary:
The US Federal Trade Commission (FTC) has issued a warning about romance scams involving cryptocurrencies, urging people to sever ties with online love interests who could be trying to defraud them. These romance scams involve fraudsters who form emotional bonds with their victims to convince them of investing in cryptocurrencies. Such fraudsters have already claimed millions of dollars from unsuspecting victims. Meanwhile, a similar surge in crypto romance scams has been observed in Canada, with fraudsters targeting users on dating apps and social media. The Canadian authorities have also issued a warning about such scams.
A cautionary statement was recently issued by the Federal Trade Commission (FTC) in the United States, alerting consumers about romance scams that utilize cryptocurrencies. The FTC advised individuals to terminate communication with potential romantic partners online who could be out to defraud them, with the allure of cryptocurrency investments as a lure. These fraudsters operate strategically, investing time in establishing relationships with their targets before executing their cons. So, what exactly are romance scams? The FTC explained that while most people wouldn't naturally doubt a love interest's integrity, these romance fraudsters build emotional ties with their victims, making their pretense of being cryptocurrency gurus more believable. The agency emphasized these perpetrators' adeptness at their craft but warned stakeholders that they have already fleeced millions of dollars from innocent victims. In the FTC's words: "They will likely suggest assisting with your investments in cryptocurrency markets or educating you on how they operate. You might view them as genuinely concerned for your financial welfare but in reality, they're only interested in theirs." The FTC went on to outline various red flags indicating that a romantic interest might be a swindler. These warning signs range from assurances of large profits, no-risk assurances, the promise of revealing investment secrets and coaxing their targets into parting with their money. The advisory body stressed that profits in any investment can't be guaranteed. Also, they acknowledged the inherent risks in all forms of investments, including those within the cryptocurrency sphere. The watchdog asked recipients to report any suspected crypto romance swindlers to both the FTC and the social media platform in use by the swindler. They also encouraged persons who have contacted such fraudsters to inform their relatives and friends about the ploy. Meanwhile, in Canada, crypto fraudsters are casting their net in dating apps, hoping to lure unsuspecting Canadians in the summer season. The Canadian Anti-Fraud Centre (CAFC) noted an uptick in both romance and investment scams via social media, dating apps, and text messages on May 29. Together with the Canadian Investment Regulatory Organization (CIRO), the CAFC issued a joint cautionary statement about these scams, which often involve prolonged online interactions. Canadians were cautioned to be wary of individuals discussing trading and investing in cryptocurrencies. “As the relationship progresses, the swindler may propose an allegedly profitable investment opportunity, often linked to digital assets", warned the authorities.
Published At
6/11/2024 2:29:01 PM
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