The financial watchdog has further found that people should strictly not trust or blindly invest in cryptocurrencies proposed by strangers or online friends.
The United States Federal Trade Commission (FTC) has identified a rise in romance scams targeting the Crypto community in the US. The FTC has asked people to ignore online love interests who may be discussing investment ideas, especially related to cryptocurrencies and other digital assets, and be aware of sharing personal data with them. The regulatory trade body has warned that nobody can promise you a guaranteed outcome on crypto investments, as it results according to the volatile nature of the assets.
The FTC published an official alert addressing the soar in crypto romance Scams, fraudsters try to get in touch with potential victims via dating apps gradually gaining attention and trust under the feigning of initiating a romantic relationship. After that, scammers lead their victims into investing in shady or fake crypto assets guaranteeing them high returns. After getting the required amount or investments, these scammers disappear, and the victims might left in the lurch.
Also, read | How Indian Woman In US Lost $450,000 To Cryptocurrency Romance Scam
This is not the first time; romance scams have been listed as a dangerous category leading to hefty financial losses. In February 2024, a 37-year-old Indian woman currently residing in Philadelphia, US, reportedly lost $450,000 (Rs. 3.7 crore) in a cryptocurrency romance scam, as per the reports.
The FTC wrote in its official blog post on June 10, “No one thinks their online love interest is going to scam them, but scammers are good at what they do. 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 some money, sometimes whopping amounts like millions of dollars to romance scammers.”
In March 2024, the FBI claimed that crypto investment scams rose by 53 per cent last year. Many nations around the world are now accelerating efforts to roll out regulations to supervise the crypto sector and spell punishments for criminals making the sector unsafe for naive investors. The UAE is among the first countries to establish definitive rules outlining the punishments for crypto scammers, which include jail time of up to five years along with a fine of AED 1 million (Rs. 2 crores).
Also, read| Year Ender 2023: Sharp Decline In Cryptocurrency Theft
The financial watchdog has further found that people should strictly not trust or blindly invest in cryptocurrencies proposed by strangers or online friends.
