The U.S. Federal Trade Commission (FTC) has issued a warning about increasing romance scams involving cryptocurrencies. In a recent notice, the FTC advised Americans on handling situations where online romantic interests offer investment advice.
Scammers, often referred to as “pig butchering” fraudsters, trick victims into making fraudulent crypto investments and then vanish. A University of Texas study revealed over $75 billion lost to such scams between January 2020 and February 2024. The FTC’s advisory, authored by Colleen Tressler, explains how these scammers establish emotional connections and falsely promise high returns.
The FTC noted that scammers conduct background checks to gain trust and requested victims to avoid transferring funds if they suspect a scam. Additionally, the FTC urged victims to report such scams. The issue has prompted intervention from the FBI and CFTC, with the latter charging crypto exchange Debiex for duping customers.
Romance scams have made headlines, with one Philadelphia woman losing $450,000. The growing prominence of these attacks underscores the need for regulatory action and public awareness to combat the rising threat.
