CFTC Warns That Online Relationship Scams Can Lead to Crypto Trading
The warning lists six signs, including requests to move chats to private apps or send money to crypto wallets and trading platforms.
The Commodity Futures Trading Commission warned that people who start online friendships or romantic relationships may steer conversations toward crypto or foreign-exchange trading, listing six signs that could help users spot scams.
Scammers may begin with a wrong-number text or by liking someone’s social media posts. They may then use false names and photos to build trust before bringing up trading.
The warning cited data showing that romance and “pig-butchering” groups defrauded victims of more than $3.5 billion in 2023. Pig-butchering scams typically involve building a relationship or trust before urging someone to put money into a fraudulent trading scheme.
The six warning signs include requests to move a conversation to a private messaging app; frequent contact without ever meeting; claims of getting rich through crypto or foreign-exchange trading; and a recommended trading site that accepts only cryptocurrency. Other signs are requests to send funds to someone’s wallet or a specified platform, and an account showing easy profits after a short time.
The warning describes how scammers build relationships and use them to direct victims toward trading.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.