The U.S. Federal Commerce Fee (FTC) has warned about romance scams utilizing cryptocurrency. Scammers use romance as a hook to lure folks into bogus investments, particularly crypto, the federal company defined. “2021 numbers are practically 5 occasions these reported in 2020, and greater than 25 occasions these reported in 2019,” mentioned the FTC.
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FTC Warns About Crypto Romance Scams
The U.S. Federal Commerce Fee (FTC) issued a warning Thursday about crypto-related romance scams. The FTC is an impartial company of the U.S. authorities whose principal mission is the enforcement of civil U.S. antitrust regulation and the promotion of shopper safety.
“New information from the Federal Commerce Fee present that extra shoppers than ever report falling prey to romance scammers. Customers reported dropping $547 million in 2021 alone,” the FTC wrote, including:
A rising development in 2021 was scammers utilizing romance as a hook to lure folks into bogus investments, particularly cryptocurrency.
“Customers who paid romance scammers with cryptocurrency reported dropping $139 million in complete in 2021, greater than some other cost quantity,” the federal company detailed. “2021 numbers are practically 5 occasions these reported in 2020, and greater than 25 occasions these reported in 2019.”
As well as, the FTC famous that the median loss for shoppers who reported paying a romance scammer with cryptocurrency in 2021 was practically $9,770.
The Federal Commerce Fee defined that in romance scams:
Persons are led to consider their new on-line companion is a profitable investor who, earlier than lengthy, casually provides funding recommendation.
Apart from cryptocurrency, one other fashionable funding methodology promoted by these romance scammers includes overseas alternate (foreign exchange) buying and selling.
Nonetheless, the most typical methodology of cost to romance scammers is just not cryptocurrency. “About 28% of people that reported dropping cash on a romance rip-off in 2021 mentioned they paid with a present card or reload card, adopted by cryptocurrency (18%),” the FTC clarified.
The federal company has issued a number of warnings about scams involving cryptocurrency this yr. In January, it warned about crypto scams utilizing social media and ATMs.
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