FBI Cautions Of Increase In Cryptocurrency Romance Frauds.

FBI Cautions Of Increase In Cryptocurrency Romance Frauds.

2022-02-12 | Eddy Morgan

FBI Cautions Of Increase In Cryptocurrency Romance Frauds.

The Federal Bureau of Investigation (FBI) of the United States has released a caution about an increase in romantic frauds in the San Francisco Bay Area, with the current trend incorporating cryptocurrency.

Merely a couple of days before Valentine's Day, the FBI San Francisco field office issued an advisory to the public concerning an increase in romantic frauds depending upon accusations lodged with the FBI's Internet Crime Complaint Center (IC3). A romance scam includes the creation of bogus accounts and luring unsuspecting investors — both males and females — to send dollars under the guise of becoming romantic.

Victims in the FBI San Francisco squad's jurisdiction lost over $64 million to romance frauds in 2018, opposed to little more than $35 million in 2020.

The intelligence and security service received 742 accusations in the Northern District of California alone in 2021, outnumbering the 720 and 526 objections received in 2020 and 2019, correspondingly.

Furthermore, in 2020, the IC3 got approximately 23,000 complaints involving confidence/romance frauds, with claimed losses totaling over $600 million.

A common romantic scam begins by earning the victims' confidence, after which they are steered to fake platforms claiming to offer financial possibilities. While the fraudsters enable investors to withdraw some earnings from the initial deal as a means of establishing a reputation, victims are persuaded into investing additional money or bitcoins.

Fraudsters, on the other hand, usually cease replying when the sufferers reject to pay further cash. The FBI advises victims of romance frauds to disclose their experiences and contact their banks.

The FBI recommends avoiding romance frauds by not accepting investment guidance based solely on online communication, not divulging financial data, avoiding pledges of unachievable revenues, and also being "cautious of people who assert to have unique investment possibilities and implore you to function quickly."

Binance CEO Changpeng Zhao previously warned the cryptocurrency community of a "huge" SMS phishing scheme affecting Binance clients.

According to market experts, the fraud includes sending consumers a text message with an URL to reverse withdrawals, which leads them to a phoney website meant to steal their login information. To combat the continuous fraud, Zhao suggests manually inputting the URL of the cryptocurrency exchanges.

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