US: FTC warns on rising crypto scams

The United States Federal Trade Commission (FTC) has warned on rising scams in cryptocurrency-based use.

The commission said the scams involve fraudsters building relationships with their victims online, only to later deceive them into investing in fraudulent crypto schemes.

Scammers take a patient approach and nurture online relationships over weeks or months to gain trust.

They then introduce the idea of investing in cryptocurrency, presenting themselves as knowledgeable investors looking to help their victims make money.

The FTC warns that these scammers are adept at creating believable and emotionally compelling stories.

The FTC highlighted several red flags that might indicate a romance scam which include promises of high returns with no risk, claims of insider knowledge about crypto markets and requests for money to invest on behalf of the victim.

The agency emphasized that no legitimate investment guarantees profits and that all investments carry risk.

Consumers are urged to cut off communication with anyone who fits these patterns and to report suspected scammers to the FTC and the social media platforms where contact was made.

The FTC also advises the public to inform friends and family about these scams to prevent further victims.

Canada has also noticed increasing scams among crypto users, with both Canadian Anti-Fraud Centre (CAFC) and the Canadian Investment Regulatory Organization warning citizens about fraudsters on dating apps and social media.