Cryptocurrency Romance Scams: Investing Money With Someone You Met Online

Romance scammers love cryptocurrency, as it is very easy to hide crypto transactions and the scammers’ real identity.

An initially thrilling virtual love story can quickly transform into a disastrous financial venture for those ensnared in romance scams. These scams commence when skilled criminals cultivate relationships with susceptible individuals on dating platforms and social networking sites claiming financial freedom and dreams of being able to travel with their new love.

Once they have gained their victim’s trust, the perpetrators manipulate them into providing funds for fictitious reasons such as medical emergencies, travel expenses, or legal fees. According to a preliminary report from the FBI’s Internet Crime Complaint Center (IC3), a total of 19,050 victims reported losing $739,030,292 to romance scammers in 2022, and in 2021 alone, the FTC received 56,000 reports of romance scams and losses totaling $547 million. Compared to just four years earlier, total losses increased by 500%.

The FBI foresees an upsurge in reported financial losses in 2023 owing to a prevalent form of romance scams known as International Crypto Investment Fraud. These scams bear a resemblance to online relationships, but instead of soliciting cash, scammers persuade victims to invest in cryptocurrencies. To showcase enticing returns on investment, victims are directed towards seemingly legitimate websites that, unbeknownst to them, are under the scammer’s control. However, once the victim makes a purchase, they are denied the opportunity to withdraw their investments, and the scammer abruptly severs all contact.

Romance scammers employ a repertoire of deceitful tactics to deceive and defraud unsuspecting individuals. These scammers meticulously study the information you share and seamlessly mold themselves into your ideal match. They adeptly mirror your preferences and aspirations, adapting themselves to your desires.

However, there is one crucial exception—they always find a reason to avoid meeting in person. Reports indicate that their excuse is often intertwined with their fabricated identity. The most prevalent alibi they employ is claiming to be stationed on a remote military base, while others frequently pose as “offshore oil rig workers,” which is yet another fictional occupation. In essence, romance scammers are relentless in their fabrication of falsehoods, all with the ultimate aim of extracting your hard-earned money.

Research reveals that romance scammers frequently target individuals seeking love through dating apps. However, even more prevalent are reports of romance scams initiated by unsolicited private messages on social media platforms. Astonishingly, last year, 40% of individuals who fell victim to a romance scam stated that the initial contact occurred on social media, while 19% reported it originated from a website or app. Furthermore, many victims disclosed that the scammer swiftly transitioned the conversation to messaging platforms like WhatsApp, Google Chat, or Telegram.

You may be familiar with romance scammers who employ fabricated stories of illness, injury, or imprisonment as a means to coax money from their victims. However, it’s important to note that many romance scammers operate by appearing helpful and offering favors. They might pose as successful cryptocurrency investors, promising to educate you in the ways of profitable investments. Yet, any funds you “invest” will simply line their own pockets.

Divya Gadasalli, a 25-year-old woman living outside of Dallas, Texas, lost more than $8 million to a crypto romance scammer she met on Tinder last year. She told Bloomberg she felt confident she wasn’t being scammed because she was able to take money out of her crypto wallet — at first. But eventually, the scammer’s crypto platform made it more and more difficult to withdraw funds and she lost access to her money after several months.

Essential indicators that suggest you are engaging with a deceitful individual involved in a crypto scam:

Should you come across any of these situations, it is advisable to start posing deeper inquiries. If you find the answers unsatisfactory or notice the person, you’re interacting with becoming defensive (a person who has nothing to hide, does not become defensive), it might be prudent to contemplate blocking them on your device and severing ties with them completely.

Fast-moving relationship

Upon initiating contact, individuals orchestrating romance scams will inundate you with an abundance of flattering remarks. It is crucial to exercise caution when encountering excessive compliments from someone you have never met face-to-face, particularly if they express their affection after just a few conversations. It is important to remain vigilant and skeptical of these compliments, as the notion of love-at-first-direct-message is far from genuine.

Refusing to meet in person or over video

Displaying reluctance or consistently postponing face-to-face meetings should raise significant concerns. Individuals engaging in catfishing, where they deceive others online by using fake photos and backstories, often employ various excuses to avoid revealing their true identity. These excuses can range from claims of illness or familial and work obligations to citing the financial burden of travel. When two individuals share a genuine, deep connection rooted in love, they are willing to make necessary compromises to meet in person.

Furthermore, some scammers refuse to engage in phone conversations or video chats, offering excuses such as shyness or camera malfunctions. It is important to note that they may be hiding a Chinese accent, as this scam originated in China and many scammers targeting individuals outside the country are of Chinese origin.

Obsession over financial freedom and investments

Throughout the course of the scam, individuals orchestrating crypto romance scams will consistently discuss investments and boast about their financial prosperity. This is a deliberate strategy employed to lure victims into the cryptocurrency aspect of the scam. They may even provide screenshots of their bank or investment accounts as supposed evidence.

“On day two, he sent me a screenshot of his crypto portfolio “out of the blue” with a $5.5 million chest, and $150,000 in gains for the day”

Additionally, these scammers may attempt to impress victims by flaunting an extravagant lifestyle by sending photos of different luxurious vacations. The scammers work very hard to position themselves as financially successful. In crypto romance plots specifically, the criminal will ask for payment in cryptocurrency, such as Bitcoin or Ethereum. In general, you should be skeptical of any person or organization that asks for payment in crypto.

Crypto romance scams are relatively new and proved to be highly effective due to several factors. Firstly, the majority of individuals possess limited knowledge about cryptocurrency. Secondly, these scams exploit people’s genuine longing for love and romance. However, the most severe aspect of this type of scam is the difficulty to recover stolen cryptocurrency. Unlike a bank account that a real person with a valid Social Security Number must open, crypto does not have such requirements. The anonymity is what makes crypto the preferred payment type for scammers.

Recovering stolen crypto assets

If you think you are being scammed review the crypto companies scam tracker list which keeps track of many fraudulent websites including the ones commonly used in crypto romance scams.

With the ongoing evolution of laws and technology, the prospects of recovering stolen cryptocurrency funds are becoming more favorable. It is highly feasible to trace the stolen funds effectively and bring the perpetrators to justice through the utilization of asset tracing and asset recovery.