Ah, romance in the cyber age.
Roughly 30% of Americans say they have tried out a dating app with one in 10 saying they met their significant other online. There are pitfalls to online dating, of course (just how old is that profile picture?) but one you may not think about is you could caught up in an investment scam.
It happens more than you think.
Colleen Tressler, with the Federal Trade Commission’s Division of Consumer and Business Education, wrote in a blog post that scammers capitalize on the emotional connection formed in dating and social media sites to exploit their victims. Some of the most common scams are phony investments, especially when someone tries to pass themselves off as an expert in cryptocurrency for example.
The cost of romance scams continues to grow each year, topping $547 million in 2021, the most recent data available. Most scams involved gift cards as the payment method but the FTC said those involving cryptocurrency payments were the costliest.
“No one thinks their online love interest is going to 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?
Generally, romance scams all start with someone contacting you – seemingly at random – on a dating app or social media site. They have 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 crypto markets or they say they can teach you to do it on your own.
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 be on the lookout for:
- Promised of large profits – No one can guarantee profits in any investment. If they do, it’s a scam.
- ‘No risk’ investment- No investment is without risk and a legitimate financial advisor will disclose that information.
- ‘Help you learn’ – You won’t learn anything from a scammer other than how quickly your money and your “love interest” will be gone.
- Send me money – Scammers want their money quickly, so they will direct you to send via gift cards, payment apps like Apple Pay, CashApp, PayPal and Zelle, wiring money or even cryptocurrency. You know it’s a scam is the person is directing you to send money this way.
If you’re confronted with one of these situations, the best thing you can do is to cut off contact with them imediately. Report them to the dating app or social media site and then to ReportFraud.ftc.gov.
