A Drastic Increase in Romance Scams Due to The Global Pandemic & Cryptocurrency Pandemic

Coronavirus has offered a convenient scapegoat for fraudsters to declare they are unable to meet the person, which may have fostered the continuous expansion of romantic scams, according to Ms. Fletcher. Fraudsters used relationships as bait to attract individuals into phony transactions last year, especially those involving cryptocurrencies, she added.
May 13, 2022
woman checking her phone

Romance frauds, similar to the ones documented in the Youtube Inc. film “The Bumble Fraudster,” are all on the rise even before the coronavirus outbreak, but their popularity is already at unprecedented levels. The fast rise of the scam, spurred by the explosion of online social networking sites and media platforms, as well as strategies being employed to attract younger fans, such as the increased usage of bitcoin, is getting fresh interest from police officers and regulatory agencies. As per customer complaints to the Department of Commerce, the frequency of romance-frauds accusations continued to climb throughout 2021, after reaching new highs in 2020. The frequency of romantic scams notified by the FTC increased by approximately 70% during 2020 to 56,000 in 2021. According to FTC statistics, investigations suggest spending $547 million on similar frauds, up 78 percent from the previous season. “For fraudsters, romanticism is a tremendous hook,” said Emma Fletcher, a statistics analyst with the Federal Trade Commission’s Bureau of Consumer Rights. 

The coronavirus has offered a convenient scapegoat for fraudsters to declare they are unable to meet the person, which may have fostered the continuous expansion of romantic scams, according to Ms. Fletcher. Fraudsters used relationships as bait to attract individuals into phony transactions last year, especially those involving cryptocurrencies, she added. While trying to seduce a vulnerable person, fraudsters frequently lead to the perception that they are accomplished businessmen and nonchalantly provide financial advice for fictitious prospects involving foreign currency exchange dealing or cryptocurrencies.

Statistics Regarding The Fire Set By Dating Scams

In 2021, cryptocurrencies were the most popular means for sufferers to make such repayments, with around $139 million and counting. According to the FTC, this is roughly five times the bitcoin amount recorded in 2020 and much more than 25 times the number recorded in 2019. According to FTC statistics, over $121 million were stolen via cash deposits or transactions in 2021, while another $93 million was stolen via wire transactions. In 2021, the FTC witnessed a growth in the number of reports of romantic scams throughout all age categories, but perhaps the most massive increase was among 18–29-year-olds, according to Ms. Fletcher. And over 400 of the party’s 1,200 members are in the United States, according to the Global Anti-Scam Organization, a Singapore-based NGO founded by survivors of internet frauds that frequently include bitcoin. 

As per Jan Santiago, acting head of GASO, GASO comprises several students and people in their 20s and 30s. Some of them are lawyers, computer programmers, and surgeons, who’d been expecting more to court but rather were forced into indebtedness. According to the organization, which again was created in June, the overall average for its U.S. membership in January was $83,000, with just some people losing over $3 million.

The study discovered that the scams have several similar features regardless of how the consumers encounter the scam artists via social networks or internet dating or if the connection begins emotionally. A fraudster often earns a user’s confidence before providing cash guidance and possibilities to invest in cryptocurrencies, according to GASO. The target is then persuaded to create an account on an auction site like Coinbase Global Inc., Gemini Trust Co., or Kraken. After a week or three, the con artist tries to persuade the client to move funds from the bank to a phony investing site where the fraudster promises greater profits by trading bitcoin futures. However, also after incurring hefty prices or thereabouts levies, the sufferer is unable to transfer money. Mr. Santiago described the swindle as a mix of passion and investing. Fraudsters use the combination to trap younger people, he added.


We have encountered victims who were mentally and emotionally drained when they were scammed out of their money. We can help you with your legal and technical concerns. We can help you get your money back.

Role of GASO

GASO has indeed been assisting its own membership with activity tracking and reporting to crime prevention efforts, as well as engaging with authorities to increase awareness about the issues that fraud sufferers may encounter. Mr. Santiago said the organization has also communicated with Coinbase’s worldwide intel detectives to exchange information about just the schemes. Coinbase officials did not reply to a seeking comment. Gemini and Kraken officials did not initially immediately reach for comment. Several government entities have started an education campaign to help raise awareness about romance scams that mostly target individuals via online dating or online networks. 

The Financial Stability Board of the U.S. Treasury Department, the Financial Industry Regulatory Authority, and the Federal Deposit Insurance Corporation said that they are attempting to reach out to the audience thru the media and public collaborations purpose of providing details about how to recognize frauds about what to do if you are a target, along with how to gather documentary evidence and notify the theft to the relevant people.

The CFTC contacted GASO last autumn to learn further about romance scams and advise on ways to increase awareness, according to GASO. Increased consumer and investor security, according to the organization. The CFTC contacted GASO for information in one of the bank’s romance scam alerts, according to a spokesperson. Mr. Santiago explained, “We generate sufficient development so accessible, and media manipulation has resulted in fewer points of interaction.” “[Digital financial services] must have the same level of security as going into banking and speaking with a teller.” As per Alma Angotti, a consultant at consultancy firm GuideHouse who specializes in hazard and regulatory requirements, customer education is crucial for banking firms to be smart enough to avoid and identify such scams. 

She explained, “It’s about knowledge, instruction, and understanding.” Financial firms might not have been able to perceive fraudulent activity if anyone volunteers to send money via wireless operators or checks since it appears to them to be an ordinary payment, she added. However, according to GASO, there is nothing a sufferer can do to cover money without tougher regulations, such as a stronger exact understanding of recruitment and training and enhanced identity verification at brokerage firms and institutions. 

“Because cryptocurrency has become such a fragile commodity, [transactions] must have the same type of laws as financial markets,” Mr. Santiago added. “Several of the sufferers really had no idea what unique cryptocurrencies are,” he added, noting that brokerage firms have the authority to safeguard that their customers understand crypto, or “they would not have allowed anyone in at all.”

scam on laptop

Data Researcher at The FTC’s Consumer Protection Bureau

The coronavirus has offered a convenient scapegoat for fraudsters to declare they seem unable to meet face to face, which could have fostered the continuous expansion of romantic scams, according to Ms. Fletcher. Fraudsters have been progressively using relationships as a bait to attract individuals into bogus transactions, especially those that involve cryptocurrencies, in the last year, she added. Thieves typically dupe victims into believing they are experienced traders and nonchalantly provide investing advice for phony possibilities, which frequently include forex or value in order. In 2021, the virtual currency was the most popular means for sufferers to submit such settlements, with a total value of roughly $139 million.

According to the FTC, this is approximately five times the value of bitcoin recorded in 2020 and also more than 25 times the number reported in 2019. Thus according to FTC statistics, over $121 million were stolen via cash deposits or transactions in 2021, while another $93 million was stolen through wire transactions. In 2021, the FTC discovered a growth in the number of marriage fraud claims throughout all age categories, but the largest growth had been among 18-29-year-olds, according to Fletcher. And over 400 of the firm’s 1,200 users are in the United States, according to the Global Anti-Scam Association, a Singapore-based charity founded by victims of online scams that frequently include bitcoin. The bulk of the group’s members have fallen prey to love frauds.

As per Jan Santiago, GASO’s assistant director, GASO is composed of several highly qualified individuals in their 20s and 30s, including attorneys, software engineers, and physicians, who were looking forward to more dating but instead ended themselves in debt.

FTC and The Rise of Scams

Another shift has had more youngsters become involved, with the FTC reporting that the number of incidents by Americans aged 18 to 29 more often than threefold rose from 2017 to 2021. Frauds, including phony donations, are on the rise thanks to the emergence of bitcoin, while anonymous gift vouchers and money transfers are still much more popular. Teenagers are “swindled disproportionately frequently and for lesser cash sums,” according to McGuinness, whereas older folks are “swindled for higher sums but less regularly.” Victims frequently keep their stories hidden because they are afraid of being judged. Montgomery Johnson learned of so many more individuals who had also been created in the decades after he was duped, “but no one was complaining.” “Something inside me changed, and it’s no longer just me,” she explained. “It’s about the content.” If you are a victim of these rampant scams then please contact us to assist you get your money back!

The Most Common Scams on Dating Sites

To summarize, a romantic scam goes like this: the fraudster contacts the prey, establishes a trustworthy connection, and then requests payment. Although this is a common trend, internet love frauds may take many different forms. Crisis plans. This has been the most prevalent type of fraud. Fraudsters make up a beautiful narrative on how they acquired a baby and really need money to support them—or that they’ve been held at a distant crossing point and really need funds to employ an attorney. Whereas these claims may appear unbelievable, fraudsters have been manipulating their prey for months and trying to get them to accept any falsehood.

Try to manipulate. Fraudsters might request a video call from their targets. Hackers may pressure the client to be undressed or do other private activities during the conversation. The fraudster then pretends to have recorded a film and threatens to release it even if the target gave the money. Tax evasion. This is a type of financial fraud in which thieves use the help of others to transport illegal monies. Hackers might deliver money, smartphones, or other important things to their customers and request that they resent someplace. This form of deception is extremely hazardous to the sufferers’ safety because they may become accidentally entangled in the financial activities of a transnational criminal ring.

Phishing. Fraudsters might email their customers misleading URLs in order to obtain their personally identifiable information. They may, for example, offer a link ostensibly leading to their social network profile. The URL, in fact, leads to a virus page. In other circumstances, a fraudster may email a hyperlink to a victim requesting them to “check their identity.” After clicking, the victim is asked to provide their identity, home, documentation details, and even account information. This information might be used to create a debit card or borrow money in the case file.

Scams are based on romanticism. This is a fairly recent fraud in which con artists encourage people to engage in a money-making opportunity. Scammers, for example, might pose as financially independent women and then link to a dodgy cryptocurrency investment opportunity whenever questioned where they earned their money. While normal dating scams typically favor older individuals, seduction lure scams affect roughly half of all victims underneath the threshold of 35.

surfing at night

Beware of Online Dating Scams

When you identify a fraudster, the company may blacklist them and prohibit them from doing so again. Below is a brief rundown of where to denounce fraudsters as well as do so:

  1. When should you contact a dating platform? If a user feels a profile is a fraud, all they have to do is report it to the platform, along with any facts about the allegations.
  2. When should you notify a commercial bank? In conjunction with contacting the dating service, users who have submitted banking details to each other on a dating site must notify the institution, lending business, or another appropriate commercial bank right away.
  3. So when do you report to a government body? To prevent the fraudster from misleading additional victims, this is always a smart option to denounce frauds to police departments or even other governmental agencies accountable for fraud prevention.

Kindly share this Charbacking post with other dating website users to help them be watchful of similar scams and to avoid falling victim to seduction fraudsters.


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