With the growing popularity of crypto assets, criminals are devising new ways to take advantage of customers. On Tuesday, the US Federal Trade Commission (FTC) issued an advisory report warning consumers about the prevalence of romance scams.
The FTC noted that as businesses invest heavily to prevent financial losses, criminals use social media platforms to scam customers.
Rise of Crypto Romance Scam
The financial regulators stated that bad actors build relationships with the victims before stealing from them.
The FTC observed that after building trust with their target customers, the criminals entice the victims to invest in fraudulent crypto investments. Unlike other scams, romance scammers are a bit patient with their victims.
The scammer establishes a solid relationship before deceiving them into their fraudulent schemes. The FTC noted that the romance scammers ensure an an emotional relationship with their victims before executing their mission.
The regulators described the romance scammers as manipulative, making it difficult for the victims to realize they were being scammed. The scammer purports to be a financial expert with vast crypto and wealth expertise.
The FTC noted that the scammers have gained proficiency in executing their tasks. With the rise of romance scams, the regulators lamented that the criminals had robbed innocent customers of millions of dollars.
US FTC Warns Public Against Romance Scams
In most cases, scammers voluntarily offer victims advice on crypto investment, while others claim to be successful traders willing to teach customers about crypto assets.
The FTC argued that the criminals mastered deceiving customers by claiming to have gained financial freedom through their dubious schemes. Unknown to many, the FTC confessed that the scammers were only interested in fulfilling their financial independence rather than assisting the customers.
In the FTC report, the regulators outline several approaches neccessary to identifying scammers. The regulators cautioned the public against individuals showing signs of love or promising quick riches.
Also, the public was warned against investing in investments promising high returns or low-risk investments. The FTC noted that most individuals claiming to offer investment secrets or lessons are not genuine.
Criminals Devise New Approach to Steal from Customers
The regulators advised the public to conduct due diligence checks before investing in any project. The commission stated that all investments have inherent risks. Having been at the forefront of campaigning for consumer protection and fair business practices the FTC understands how businesses operate.
Therefore, the FTC affirmed that no investment guarantees low risk. The commission stated that there is no chance any investment will ensure high returns.
The regulators have urged the public to report romance scams or social media platforms criminals use. Informing the regulators of suspicious activity is critical in protecting the consumer interest.
Besides reporting to the relevant authorities, the victims of romance scams were encouraged to warn their loved ones about these scams. The FTC’s early warning against romance scams replicates the advisory approach by the Canadian authority.
Earlier last month, the Canadian Anti-Fraud Centre (CAFC) claimed that criminals were targeting dating sites. The CAFC lamented that Canada’s romance, investment, and pig butchering scams were rising.
The commission stated that the criminals were using dating sites, social media platforms, and other websites to steal their hard-earned money from customers. The regulators advices Canadians to be vigilant when befriending strangers on dating sites.
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