FBI warns against rising crypto romance scams during Valentine’s week

For the uninitiated, a romance scam typically involves creating fake accounts and convincing a potential victim to invest or transfer cryptocurrency funds under the pretext of getting romantic.

Here’s how this scam typically works. The scammer creates a fake identity and tries to gain trust and confidence of the victim, usually talking about relatable topics. This is called social engineering. Once the trust is gained, the scammer then directs the victim to a fraudulent website or application for an investment opportunity, in this case a cryptocurrency investment opportunity.

The scamster then, asks the victim to register on a malicious cryptocurrency exchange. After the victim has invested an initial amount on the platform and sees an alleged profit, the scammers allow the victim to withdraw a small amount of money. Eventually, the scammer instructs the victim to invest a more considerable amount.

When the victim is ready to withdraw funds again, the scammers create reasons why this cannot happen. The victim is informed additional taxes or fees need to be paid, or the minimum account balance has not been met to allow a withdrawal.

Sometimes, a “customer service group” gets involved, which is also part of the scam. Ultimately, victims cannot withdraw any money, and the scammers most often stop communicating with the victim after they cease to send additional fund.

Tips to protect yourself

#Do not invest as per the advice of someone you have only met online.
#Do not disclose your financial status to any unknown and untrusted individuals.
#Do not provide your banking information, copies of your identification or passport, or any other sensitive information to anyone online or to a site you do not know is legitimate.
#If an online investment or trading site is promoting unbelievable profits, it is most likely that—unbelievable.
#Be cautious of individuals who claim to have exclusive investment opportunities and urge you to act fast.