Today is February 14th, Valentine’s Day. A day when lovers crown each other with a bouquet of roses or other gifts. However, today could be a different time frame especially for those seeking love. Scammers have chosen this day to prey on individuals without partners. Important warnings have been issued regarding this matter. Let’s look at the details.
Crypto Scams on Valentine’s Day
The online dating market is expected to reach a value of $3.1 billion by 2024, making it a lucrative venture. Statista indicates that by 2027, there will be approximately 440 million users of online dating services. Consequently, as the number increases, so does the likelihood of becoming a victim of romantic scams, including those focused on crypto.
According to research published by Binance‘s security division, the frequency of romance-focused scams is increasing. Other security and analysis firms have also confirmed this trend. According to data from Norton’s 2023 Cyber Safety Insights study, one in four adults worldwide has been a victim of online romance or dating fraud.
On the other hand, the importance of the issue is highlighted by the 11,235 complaints about dating and romance scams filed with the US Federal Trade Commission in 2016. Since then, this number has dramatically increased, pointing to an estimated 70,000 complaints in 2022. The increase in complaints means an increase in financial losses. The $1.3 billion loss suffered by vulnerable individuals seeking love is staggering.
Crypto Used in Romance Scams
We occasionally see crypto currencies being used in fraudulent activities. Interestingly, 34% of the losses in romance-focused fraud activities are in the form of crypto currency losses. Additionally, Binance claims that romance-focused scams accounted for 2% of all reported frauds in 2023. Even with a conservative estimate, it emphasizes that the average loss per victim is around $14,000.
Tigran Gambaryan, head of financial crime compliance at Binance, has drawn striking parallels between love scammers and financial fraudsters. Gambaryan had previously worked as a former US IRS inspector. Regarding the issue, Gambaryan says:
“Drawing from my experiences as a special agent, I can say that these manipulations are no different from the schemes I’ve seen where scammers sell lies to get your money. The essence of their approach is the same: to exploit trust and try to establish fake relationships to achieve their deceptive goals.”
Tinder App Being Used
Many of these scammers use platforms like Tinder to meet potential victims. They also employ different tactics to gain their victims’ trust before asking for financial commitments or investments.
Reports claim that after gaining trust, crypto scammers use DeFi platforms to defraud their victims. Connecting their wallets to a malicious contract can be enough to make the victims susceptible to a hack.
The solution to this issue is clear. Security representatives warn individuals to be extra cautious when forming relationships with strangers. Additionally, caution is advised when someone requests financial information or sensitive data. You should not send money to people you meet online and have not seen face-to-face.
