In the age of digital dating, romantic scams have become a significant risk that has not escaped the world of cryptocurrencies. These scams, which often start with an innocent conversation on a dating platform or social media, can quickly escalate into financial losses of even tens of thousands of dollars.
According to Binance data for 2023, romance scams accounted for roughly 2% of all reported financial fraud cases. While this percentage may seem modest, the collective financial losses suffered by victims exceeded tens of millions of dollars, averaging nearly $14,000 per victim. The FTC report states that 34% of the total reported losses were specifically related to cryptocurrencies. Fraudsters are thus trying to adapt their methods to the growing popularity of digital currencies.
“Victims are lured on dating apps to invest in fake cryptocurrency opportunities with high returns. After small initial deposits that appear legitimate or even profitable, victims are tricked into making larger investments. By the time victims realise they have fallen victim to a scam, it is often too late.” illustrates Erin Fracolli, Head of Global Intelligence and Investigations at Binance.
Although romance scams and their associated financial losses remain a significant risk in the digital world, leading cryptocurrency market players like Binance are actively taking a stand against them. Binance, the largest cryptocurrency exchange, for example, is developing advanced security protocols and working with law enforcement to limit opportunities for fraudsters and increase protection for its users. These efforts are contributing to a gradual reduction of fraudulent activity in the cryptocurrency sector. Thanks in part to these activities, the share of all cryptocurrency transaction volume associated with illicit activity has decreased from 0.42% in 2022 to just 0.34%, according to Chainalysis’ latest 2024 Crypto Crime Report.
However, these scams can be prevented. It’s important to keep communications directly in verified dating apps and be wary of profiles that look too perfect. It’s common for scammers to use fake identities and photos, sometimes even using AI. It’s important to remain vigilant, pay close attention to any inconsistencies, and avoid sharing personal information or sending money quickly.
Source: Binance and CTK
