American romantics lose nearly $ 200 million to crypto scammers
Crypto scammers have Americans in the crosshairs as they continue to experiment with different types of scams. And a new report shows that those looking for love have become the last to fall victim.
An analysis of Bankless times revealed that US citizens are increasingly falling victim to romance crypto fraud, with losses reaching peaks of $ 185 million.
The report noted that victims lose an average of $ 10,000 to romance scammers. And romance scams are now the second most common type of crypto scam.
The romance scammers operate by pretending to be a romantic interest in the unsuspecting victim and spend time gaining their trust over the internet. After gaining the trust of the victim, the next phase of the scheme involves advising the victim on how to invest money in cryptocurrencies.
Scammers often direct victims to deposit money on fake crypto-trading platforms as the final stage in their elaborate plot.
“Victims of romance scams learn that the heart is not so smart the hard way,” said Jonathan Merry, CEO of Bankless Times. “Their search for love makes them easy to choose to find individuals who are cheating them out of their money.”
Not just the old ones who fall for scams
The popular misconception is that older people are the most vulnerable demographics to these crypto-romantic scams. A closer look at the figures, however, shows that the majority of the victims are between 20 and 40 years old.
According to Elizabeth Kerr, a financial content expert, individuals in their 30s are the “worst affected” as they suffer a large share of the losses. Kerr notes that in the extreme, individuals in their 70s can lose up to $ 12,000 to scammers.
Other forms of crypto fraud that wreak havoc on individuals in the United States are imitations of businesses and government agencies. The Federal Trade Commission (FTC) reports that a total of nearly 50,000 Americans have lost $ 1 billion from fraudulent activities.
Stay alert at all times
Last year, the Federal Bureau of Investigation (FBI) issued a warning to US households about the risk of crypto-fraudsters. The warning includes tips for identifying fraudsters with crypto-romance, such as proposing marriage and being involved in the construction industry outside the United States to avoid meeting in person.
Tips offered by the FBI include never sending money to someone you have only communicated online or by phone, and stopping all contact immediately if there is a suspicion that an online relationship is a scam.
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