SAN FRANCISCO: In the first quarter of this year, people in the US lost cryptocurrency valued over USD185 million due to romance scams. Fraudsters are employing new strategies to defraud their victims, with romance scams playing a significant role.
A recent Federal Trade Commission (FTC) investigation found that since early 2021, about 46,000 Americans have reported losing more than USD1 billion in cryptocurrency to scammers.
According to a BanklessTimes analysis, romance scams are the second most typical kind of cryptocurrency fraud. "Romance scam victims learn the hard way that the heart is not very intelligent.
They are easy prey for swindlers who scam them out of their money because of their yearning for love "BanklessTimes CEO Jonathan Merry remarked. Romance cryptocurrency scam victims typically lose USD10,000.
The fraudsters will "give guidance" on how to invest in cryptocurrencies once they have the victim. "At this point, the victims are so trusting that they're willing to follow their 'advice' to their detriment," the report said.
The other frauds include impersonation schemes in business and government. In Q1 2022, these were responsible for losses of USD133 million. These entail the fraudster pretending to be someone in a position of authority in order to obtain the victim's credentials. Cryptocurrency scams are more likely to target younger people. According to statistics, those between the ages of 20 and 40 are the most likely victims.