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So, do you want to buy some cryptocurrency?
Ah, romance in the cyber age.
Approximately 30% of Americans say so they tried a dating app and one in 10 said they met their significant other online. There are pitfalls to online dating, of course (how old is that profile photo?), but one you might not think about is that you could be involved in an investment scam.
It happens more than you think.
Colleen Tressler, of the Federal Trade Commission’s Division of Consumer and Business Educationhe wrote in a blog post that scammers exploit the emotional connection that forms on dating and social media sites to exploit their victims. Some of the most common scams are fake investments, especially when someone tries to pass themselves off as a cryptocurrency expert, for example.
The cost of romance scams continues to grow each year, topping $547 million in 2021, according to the most recent data available. Most of the scams involved gift cards as a payment method, but the FTC said those involving cryptocurrency payments were the most expensive.
“No one thinks their online love interest will scam them, but scammers are good at what they do,” Tressler wrote. “People have lost tens of thousands – sometimes millions – of dollars to romance scammers.”
How does it work?
Typically, all romance scams start with someone contacting you, seemingly at random, on a dating app or social media site. They’ve done their homework and know what to say to help them build a relationship. The talk soon turns to money and they claim to be able to help you make tons in the cryptocurrency markets or they say they can teach you to do it yourself.
No matter what they say, if you meet someone online and they want to help you invest in cryptocurrency, it’s a scam, the FTC warns.
Here’s what you should look for:
- Promised Big Profits – No one can guarantee profits in any investment. If they do, it’s a scam.
- “Risk-Free” Investing: No investment is risk-free and a legitimate financial advisor will disclose this information.
- ‘Help you learn’ – You won’t learn anything from a scammer other than how quickly your money and your “love interest” will disappear.
- Send me money: Scammers want their money fast, so they will direct you to send it via gift cards, payment apps like Apple Pay, CashApp, PayPal, and Zelle, bank transfer, or even cryptocurrency. You know it’s a scam if the person is directing you to send money this way.
If you are faced with any of these situations, the best thing you can do is to cut off contact with them immediately. Refer them to the dating app or social media site and then to ReportFraud.ftc.gov.