Valentine’s Day: Be Careful of Crypto Romance Scams

The redness of roses and the good lyrics of love are some of the colors that paint February 14 as a romantic day globally.

But for some, it’s a reminder that love-searching individuals could fall prey to romance scams.

Crypto Scams on Valentine’s Day

The online dating market is predicted to bring in $3.1 billion by 2024, making it a lucrative venture. By 2027, Statista predicts that there will be about 440 million users of online dating services. This also means the possibility of falling prey to romantic scams, including crypto crimes, will increase. 

The frequency of romantic scams has been rising, according to a study released by Binance’s security. Other security and analytics firms have confirmed this trend. According to data from Norton’s 2023 Cyber Safety Insights study, 1 in 4 adults globally said they have fallen victim to an online romance or dating fraud.

Also, 11,235 complaints about dating and romance scams were filed with the US Federal Trade Commission in 2016. Since then, the number has increased dramatically, with an estimated 70,000 reports in 2022 accounting for $1.3 billion in losses for vulnerable individuals searching for love.

Crypto is Used in Romance Scams

Interestingly, 34% of losses in the romance scam industry are linked to cryptocurrency transactions. In addition, Binance claims romance scams made up 2% of all sorts of fraud reported in 2023. It adds that even with an adequate estimate, the average loss per victim remains around $14,000.

Tigran Gambaryan, Binance’s head of financial crime compliance, drew striking similarities between romance scammers and financial fraudsters. Gambaryan previously worked as a former U.S. IRS investigator. 

He said, “Reflecting on my experiences as a special agent, these manipulations are not unlike the schemes I’ve seen where fraudsters sell lies to get their hands on your money. The essence of their approach remains the same: exploit trust and fabricate connections to achieve their deceitful ends.”

Most of these scammers use platforms like Tinder to meet their potential victims. They also deploy different tactics to gain their victims’ trust before eventually demanding financial commitments or investments from them. 

Reports claim that crypto scammers leverage DeFi platforms to scam their victims after securing trust. Victims simply have to connect their wallets to a malicious contract to be exploited.

What’s the Solution?

Security agents caution individuals to stay extra careful when relating to strangers. In addition, beware once an individual demands financial information or sensitive data. Do not send money to people you meet online and have barely met in person. Finally, never fail to do your research on people you meet online. 



The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.


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