As millions
of consumers prepare for Valentine’s Day celebrations, regulators are sounding
the alarm on a sophisticated wave of romance-related investment frauds that
cost victims nearly $4 billion last year.
The $4 Billion Dating Scam
Targeting Your Heart
The
Commodity Futures Trading Commission (CFTC) has partnered with multiple
federal, state, and nonprofit organizations to launch the
“Dating or Defrauding?” campaign, targeting the growing threat of
relationship investment scams, commonly known as “pig butchering”
schemes.
“Today,
criminals are better able to hide their identities, create more fake profiles,
phishing emails, and more convincing scam websites than ever before,” said CFTC’s OCEO
Director Melanie Devoe.
“Valentine’s
Day and the following weeks provide an excellent opportunity to remind people
that criminals are using social media, dating, and messaging apps to scam
Americans. We ask you to be alert, and to help stop scams by warning your
friends and family.”
The
multi-agency initiative comes as romance scammers increasingly shift their
tactics from traditional dating sites to cryptocurrency investments and social
media platforms. Perpetrators often initiate contact through seemingly innocent
“wrong number” text messages or dating apps before gradually steering
victims toward fraudulent investment schemes.
Recently,
the Securities and Exchange Commission (SEC ) took its first enforcement action
against crimes of this type, targeting five entities and three individuals. The
case involves two so-called “relationship investment scams” linked to
fraudulent cryptocurrency trading platforms known as NanoBit and CoinW6.
‘Dating or Defrauding?’ a Joint Effort to Alert Online Daters, Social Media Users of Relationship Investment Scams: https://t.co/n7uIO6n5wC pic.twitter.com/avtZ1WoJyp
— CFTC (@CFTC) February 10, 2025
Pig Butchering
This is not
the first time the CFTC has warned about romance scams, which cost consumers
billions of dollars each year. Last year, during a similar campaign, the agency
highlighted so-called “pig butchering” scams.
Though the
name may seem somewhat vulgar, it effectively describes how these fraudsters
operate. They spend weeks or even months building a victim’s trust—“fattening
the pig”—and then execute the scam by asking for money or proposing a lucrative
investment—“butchering.”
Foreign
regulatory agencies have issued similar warnings in past years. In 2020, for
instance, Belgium’s FSMA noted an increase in scammers using Tinder.
“Dating
sites and apps such as Tinder are venues conducive to emotional scam attempts,”
the FSMA warned. “These sites and apps have lately also been used to prospect
for potential preys to investment fraud. Victims are mostly men. While looking
for a date, they get in touch with women of allegedly Asian descent.”
The
cryptocurrency exchange Coinbase has also raised concerns about such scams.
Fraudsters form an emotional bond with their targets and, once the victims are
vulnerable, exploit their loneliness and desire for a romantic connection.
Modern Love’s Dark Side
The
campaign highlights several red flags for potential victims, including requests
for cryptocurrency transfers, persistent inability to meet in person, and
pressure to move conversations to encrypted messaging apps. Law enforcement
officials note that scammers are particularly active during the Valentine’s
season, when emotional vulnerability may be heightened.
The
campaign emphasizes that romance investment scams affect victims across all age
groups and demographics. Fraudsters typically allow victims to withdraw small
amounts initially to build confidence before encouraging larger investments
through fake trading platforms.
As
Valentine’s Day approaches, authorities are urging Americans to share fraud
prevention information with friends and family, particularly those who spend
significant time on social media or live alone.
Participating
agencies, including the FBI, Federal Trade Commission, and Financial Crimes
Enforcement Network, will share resources and warnings through the
#DatingOrDefrauding hashtag. The initiative also involves state regulators and
organizations like FINRA and NFA.
Moreover, CFTC this week also informed that federal courts ordered two cryptocurrency scammers to pay $9.1M combined in restitution for separate digital asset fraud schemes.
As millions
of consumers prepare for Valentine’s Day celebrations, regulators are sounding
the alarm on a sophisticated wave of romance-related investment frauds that
cost victims nearly $4 billion last year.
The $4 Billion Dating Scam
Targeting Your Heart
The
Commodity Futures Trading Commission (CFTC) has partnered with multiple
federal, state, and nonprofit organizations to launch the
“Dating or Defrauding?” campaign, targeting the growing threat of
relationship investment scams, commonly known as “pig butchering”
schemes.
“Today,
criminals are better able to hide their identities, create more fake profiles,
phishing emails, and more convincing scam websites than ever before,” said CFTC’s OCEO
Director Melanie Devoe.
“Valentine’s
Day and the following weeks provide an excellent opportunity to remind people
that criminals are using social media, dating, and messaging apps to scam
Americans. We ask you to be alert, and to help stop scams by warning your
friends and family.”
The
multi-agency initiative comes as romance scammers increasingly shift their
tactics from traditional dating sites to cryptocurrency investments and social
media platforms. Perpetrators often initiate contact through seemingly innocent
“wrong number” text messages or dating apps before gradually steering
victims toward fraudulent investment schemes.
Recently,
the Securities and Exchange Commission (SEC ) took its first enforcement action
against crimes of this type, targeting five entities and three individuals. The
case involves two so-called “relationship investment scams” linked to
fraudulent cryptocurrency trading platforms known as NanoBit and CoinW6.
‘Dating or Defrauding?’ a Joint Effort to Alert Online Daters, Social Media Users of Relationship Investment Scams: https://t.co/n7uIO6n5wC pic.twitter.com/avtZ1WoJyp
— CFTC (@CFTC) February 10, 2025
Pig Butchering
This is not
the first time the CFTC has warned about romance scams, which cost consumers
billions of dollars each year. Last year, during a similar campaign, the agency
highlighted so-called “pig butchering” scams.
Though the
name may seem somewhat vulgar, it effectively describes how these fraudsters
operate. They spend weeks or even months building a victim’s trust—“fattening
the pig”—and then execute the scam by asking for money or proposing a lucrative
investment—“butchering.”
Foreign
regulatory agencies have issued similar warnings in past years. In 2020, for
instance, Belgium’s FSMA noted an increase in scammers using Tinder.
“Dating
sites and apps such as Tinder are venues conducive to emotional scam attempts,”
the FSMA warned. “These sites and apps have lately also been used to prospect
for potential preys to investment fraud. Victims are mostly men. While looking
for a date, they get in touch with women of allegedly Asian descent.”
The
cryptocurrency exchange Coinbase has also raised concerns about such scams.
Fraudsters form an emotional bond with their targets and, once the victims are
vulnerable, exploit their loneliness and desire for a romantic connection.
Modern Love’s Dark Side
The
campaign highlights several red flags for potential victims, including requests
for cryptocurrency transfers, persistent inability to meet in person, and
pressure to move conversations to encrypted messaging apps. Law enforcement
officials note that scammers are particularly active during the Valentine’s
season, when emotional vulnerability may be heightened.
The
campaign emphasizes that romance investment scams affect victims across all age
groups and demographics. Fraudsters typically allow victims to withdraw small
amounts initially to build confidence before encouraging larger investments
through fake trading platforms.
As
Valentine’s Day approaches, authorities are urging Americans to share fraud
prevention information with friends and family, particularly those who spend
significant time on social media or live alone.
Participating
agencies, including the FBI, Federal Trade Commission, and Financial Crimes
Enforcement Network, will share resources and warnings through the
#DatingOrDefrauding hashtag. The initiative also involves state regulators and
organizations like FINRA and NFA.
Moreover, CFTC this week also informed that federal courts ordered two cryptocurrency scammers to pay $9.1M combined in restitution for separate digital asset fraud schemes.
This post is originally published on FINANCEMAGNATES.
