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Fake Cryptocurrency Investments Using Romance Scams: FTC

The Federal Trade Commission (FTC) in the United States has issued a warning regarding cryptocurrency-based romance frauds. Scammers use romance as a hook to entice people into making fake investments, particularly in cryptocurrency, according to the federal agency. The FTC stated, “The figures reported in 2021 are approximately five times those recorded in 2020, and more than 25 times those reported in 2019.”

The Federal Trade Commission has issued a warning against cryptocurrency romance scams.

The Federal Trade Commission (FTC) in the United States issued a warning against crypto-related romance scams on Thursday. The Federal Trade Commission (FTC) is a federal body with the primary aim of enforcing civil antitrust laws and promoting consumer protection.

“According to new data from the Federal Trade Commission, more people are falling victim to romance scammers than ever before. “In 2021 alone, consumers reported losing $547 million,” the FTC noted, adding:

Scammers utilising romance as a hook to attract individuals into fake investments, particularly cryptocurrencies, was a developing trend in 2021.

The government agency stated, “Consumers who paid romance scammers with reported losing $139 million in total in 2021, more than any other payment amount.” “The figures for 2021 are roughly five times those for 2020 and more than 25 times those for 2019.”

The FTC also stated that in 2021, the median loss for consumers who paid a romance scammer using cryptocurrencies was roughly $9,770.

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According to the Federal Trade Commission, romantic scams include:

People are made to feel that their new internet friend is a successful investor who would soon offer investment tips casually.

Aside from bitcoin, these romance fraudsters also advertise foreign exchange (FX) trading as a viable financial option.

However, cryptocurrency is not the most prevalent way of payment for romance scammers. “In 2021, over 28% of persons who reported losing money on a romance scam said they paid with a gift card or reload card, followed by bitcoin (18%),” according to the FTC.

This year, the government agency has issued many warnings regarding bitcoin scams. It issued a warning in January about cryptocurrency frauds via social media and ATMs.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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