FTC Warns of Romance Scams Luring Folks Into Bogus Cryptocurrency Investments

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FTC Warns of Romance Scams Luring People Into Bogus Cryptocurrency Investments

The U.S. Federal Trade Commission (FTC) has warned about romance scams the expend of cryptocurrency. Scammers expend romance as a hook to trap people into bogus investments, especially crypto, the federal company explained. “2021 numbers are with regards to 5 instances these reported in 2020, and greater than 25 instances these reported in 2019,” said the FTC.


FTC Warns About Crypto Romance Scams

The U.S. Federal Trade Commission (FTC) issued a warning Thursday about crypto-connected romance scams. The FTC is an impartial company of the U.S. authorities whose most principal mission is the enforcement of civil U.S. antitrust law and the promotion of particular person protection.

“New facts from the Federal Trade Commission show mask that extra consumers than ever story falling prey to romance scammers. Customers reported shedding $547 million in 2021 by myself,” the FTC wrote, adding:

A rising model in 2021 change into once scammers the expend of romance as a hook to trap people into bogus investments, especially cryptocurrency.

“Customers who paid romance scammers with cryptocurrency reported shedding $139 million in total in 2021, greater than any assorted payment quantity,” the federal company detailed. “2021 numbers are with regards to 5 instances these reported in 2020, and greater than 25 instances these reported in 2019.”

Besides, the FTC principal that the median loss for consumers who reported paying a romance scammer with cryptocurrency in 2021 change into once with regards to $9,770.

The Federal Trade Commission explained that in romance scams:

Folks are resulted in take into consideration their original online accomplice is a a hit investor who, old to long, casually affords investment recommendation.

Besides cryptocurrency, one other accepted investment means promoted by these romance scammers involves foreign replace (forex) trading.

Nonetheless, essentially the most typical job of payment to romance scammers will not be any longer cryptocurrency. “About 28% of people that reported shedding money on a romance rip-off in 2021 said they paid with a gift card or reload card, followed by cryptocurrency (18%),” the FTC clarified.

The federal company has issued plenty of warnings about scams interesting cryptocurrency this year. In January, it warned about crypto scams the expend of social media and ATMs.

What end you take into consideration about crypto romance scams? Let us know in the comments portion under.

Kevin Helms

A student of Austrian Economics, Kevin stumbled on Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, originate-provide techniques, community outcomes and the intersection between economics and cryptography.

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