Crypto relationship scams pose 'catastrophic harm,' SEC official says. Here's how to avoid them

Published On Oct 7, 2024, 3:24 PM

The SEC warns that relationship scams involving cryptocurrencies like Bitcoin and Ethereum are on the rise, leading to significant financial losses for investors. Scammers typically build trust through social media or dating apps, eventually persuading victims to invest in fake crypto opportunities. In 2023, fraud losses related to cryptocurrency scams reached an estimated $5.6 billion, predominantly from investment frauds. The rise of AI could further complicate detection efforts against these scams. To protect against such frauds, the SEC and FBI recommend being skeptical of online investment advice and verifying the legitimacy of investment offers and firms.