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FTC Warns of Crypto Scams From Online Love Interests

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FTC Warns of Crypto Scams From Online Love Interests

  news.bitcoin.com 11 June 2024 06:49, UTC

FTC Warns of Crypto Scams From Online Love Interests

The U.S. Federal Trade Commission (FTC) has issued a warning about cryptocurrency romance scammers who offer investment advice. The FTC emphasizes the risks involved and urges immediate reporting and caution to protect others. “They establish an emotional connection with you so you’re more likely to believe that they’re an expert in cryptocurrency investing, for example,” the regulator noted.

FTC Warns About Crypto Romance Scams

The U.S. Federal Trade Commission (FTC) issued a consumer alert on Monday, advising individuals on handling situations where an online romantic interest offers investment advice. Authored by Colleen Tressler from the Division of Consumer and Business Education, the alert highlights the deceptive tactics used by scammers posing as romantic partners to exploit victims financially.

The FTC detailed the process scammers use:

They establish an emotional connection with you so you’re more likely to believe that they’re an expert in cryptocurrency investing, for example. But that online love interest is a scammer. People have lost tens of thousands ― sometimes millions — of dollars to romance scammers.

Typically, the scam starts with an unsolicited contact on social media. Scammers meticulously study your profile to build trust and rapport. Once a relationship is formed, the conversation shifts to investments, with the scammer claiming to prioritize your financial security. In reality, their sole objective is personal financial gain.

Should someone you meet online offer assistance with cryptocurrency investments, it is likely a scam, the FTC emphasized, adding that these fraudsters promise high returns, claim there is no risk, and offer to teach you investment strategies. However, all investments carry inherent risks, and guarantees of returns are false, the regulator stressed. Scammers often request quick money transfers via gift cards, payment apps, or cryptocurrency—methods frequently used by fraudsters. If you encounter such offers, terminate contact immediately, report the scammer to the social media platform, and inform the FTC.

If you encounter such situations, the FTC recommends immediately ceasing all communication with the individual, reporting them to the social media platform, and filing a report with the FTC. Additionally, sharing this warning on social media can help protect others from becoming victims.

Have you encountered a romance scam? Let us know in the comments section below.

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