Accounted for $ 185 million in losses to Americans

According to an analysis conducted by the Bankless Times, cryptocurrencies have caught the attention of a significant portion of the US population. However, scammers have used this growing popularity to deceive people in various ways. Romance scams are among the most widely used techniques since US citizens have divorced $ 185 million due to such schemes between January 2021 and March 2022.

“The heart is not so smart”

Fraudulent schemes involving digital assets have emerged as a concern in a number of countries around the world. A recent report by the Federal Trade Commission (FTC) estimated that such fraud attempts had affected 46,000 Americans between January 2021 and March 2022, while these victims parted with crypto for over $ 1 billion.

The Bankless Times further observed that $ 185 million was lost due to romantic schemes. Criminals often target lonely individuals by pretending to be interested in a love affair with them. They develop intimate online contacts with the victims and build trust before stealing some of their money. Jonathan Merry – Bankless Times CEO – explained in detail how the scheme works:

“Victims of romance scams learn that the heart is not so smart the hard way. Their search for love makes it easy for them to find individuals who cheat them out of their money. They take on an elaborate scam that makes their victims to faint over them, and when the victim gets hold of it, they will be several thousand dollars poor. “

The Bankless Times estimated that younger people are more likely to be fooled by such scammers. According to statistics, most victims are 20 to 40 years old, while individuals in their thirties suffer the most (35% of all losses).

Earlier this year, Kryptopotet reported the story of a British man who lost bitcoin worth $ 200,000 in a romantic scam. The man started chatting with a woman named Jia from Hong Kong. The latter introduced itself as a successful cryptocurrency investor with “insider knowledge.” When she gained his trust, she encouraged him to invest some of his savings in a questionable app, to ensure that the profits would be large.

The British handed out around 200,000 dollars when he found out that his balance “had been cleared”. The man admitted that right after he realized the scam, he wanted to commit suicide. Fortunately, his mother was there for him, and thanks to her support, he is still alive.

What other scams do Americans fall victim to?

The aforementioned report revealed that investment-related fraud is still the largest fraud involving digital assets. Here, criminal victims are portrayed in an image where their investment in specific projects can lead to huge profits in a short time. They even allow “testing” so that people can believe that the scheme is legal and risk-free.

Needless to say, when the real “investment” begins, the victims are unable to withdraw their money and lose everything they have allocated. As a result of such schemes, US residents have lost nearly $ 600 million between early 2021 and March 2022.

Business Imposters and Government Imposters are also common since they have accounted for over $ 130 million of total losses.