CFTC Warns Against Online Relationship Scams Targeting Crypto Investors

The Commodity Futures Trading Commission (CFTC) has issued a warning about online relationship scams that can lead to crypto trading. According to the CFTC, scammers may start by building trust with their victims through social media or messaging apps before steering conversations toward cryptocurrency or foreign-exchange trading.

The six warning signs of a scam include requests to move conversations to private messaging apps, frequent contact without ever meeting in person, claims of getting rich through crypto or foreign-exchange trading, and recommended trading sites that only accept cryptocurrency. Other red flags are requests to send funds to someone's wallet or platform, and an account showing easy profits after a short time.

The CFTC cited data showing that romance and 'pig-butchering' groups defrauded victims of over $3.5 billion in 2023. Pig-butchering scams typically involve building trust before urging someone to invest in a fraudulent trading scheme.