March is Fraud Prevention Month and it’s more important than ever to be weary of the ever-increasing threat of sophisticated scams, especially those involving extended online communication. These scams usually end up convincing people to invest in schemes that often involve cryptocurrencies or sending money to a romantic interest.
With crypto, these sophisticated scams exploit the public’s lack of understanding and general interest in crypto assets by using social manipulation and financial grooming techniques. The victims are enticed to transfer increasing amounts of cash. These investment frauds are common and offer investors the chance to “get rich fast” or higher returns than usual. These frauds can lead to investors losing all or most of their money.
With Romance Scams fraudsters contact victims on social media or dating apps/websites using fake profiles to build a relationship and gain their trust. Once trust is gained the scammer will begin to request money for various reasons and scam them by pulling on their heart strings and emptying their wallets at the same time.
Scams Involving Cryptocurrency
Financial scams are a constant problem for consumers. However, since cryptocurrency became mainstream, the number of scams has increased dramatically. The Federal Trade Commission (FTC) reports that from January 2023 to June 2024, more than 46,000 people lost over $1 billion in cryptocurrency to scams. Remember that this number only includes those who voluntarily shared their information with authorities. The actual numbers may be much higher. Unfortunately, most consumers are unaware of how digital currencies work or how to protect their digital assets. Scammers are attracted to cryptocurrency payments because they lack government guarantees or legal protections. There is also no centralized authority or bank to flag suspicious crypto-transactions, and all crypto transfers have an irreversible nature. These factors make the crypto industry ripe for fraud.
Crypto-Scams to Be Aware of in 2025
Crypto scammers use a variety of creative methods to lure victims into traps and obtain personal information. Most crypto scams use impersonation, and carefully tailored lies to target the victim. Crypto scams are most commonly:
Extortion and Blackmail Scams: Some fraudsters claim to possess embarrassing personal information such as photos or videos to lure victims into a trap.
Scams involving “Business Opportunities”: This scam involves someone contacting you and offering you a business that promises to make you rich.
Fake job listing scams: Cyber thieves create fake job postings or send uninvited job offers to lure victims into their scheme.
Giveaway scams: The scam offers free money or other prizes if you comply with their instructions. Scammers often impersonate celebrities and influencers in order to lure unsuspecting people.
Pump-and-Dump Schemes: A group of people will entice others to invest in a coin by creating hype on social media. Scammers will work together to raise the price of an asset, until they can all cash out at once.
How To Identify A Crypto Scam
Crypto scams have several tell-tale indicators that you are about to be cheated. Be on the lookout for these signs:
- Any offer that sounds too good to true: Your instincts will likely be right if a crypto deal seems too good-to-be true. You won’t get free crypto by doing virtually nothing. A little research will help you identify claims that lack any evidence.
- Job postings that require payment: In the crypto-industry, you should never be required to pay for a job. You should not accept a job that demands upfront payment.
- Guaranteed returns are impossible: No one can guarantee investment returns. This is true for both the crypto and traditional financial industries.
- Unexpected Communications: You should ignore any email, phone call or text that asks you to log in to a crypto account or send crypto to solve an issue or to get involved in an opportunity.
If you think you may have fallen for a cryptocurrency scam, contact our Online Investment Scam Division. Our Elite Team who handles this division of investigations has Extensive Investigative Experience with International Cyber Investment Scams and other Online related Investigations. Our team consists of Retired Police Detectives with extensive knowledge and experience assisting Municipal Law Enforcement agencies across Canada and the United States, including the RCMP, FBI, United States Secret Service, United States Postal Inspectors and the Economic and Financial Crimes Commission of Nigeria.
Online Romance Scams
In recent years, online dating has become the most popular method for singles to meet their soul mate. However, scammers are also using it to try and get into an unsuspecting victims wallet. The FBI reports that scams online have risen by nearly 25% since 2021. This has led to a loss to innocent individuals of more than $500 million.
How the Romance Scams Work
Fraudsters who commit online dating fraud will create fake profiles with false photos, false names, and false information to attract the kind of victim that they desire. Once they are in contact with their target, they use heartfelt words, gifts, and loving conversations to gain their trust and divert the attention away from their true identity.
What are the most common internet dating scams?
Internet dating scams come in many forms, but these are the most common:
- Catfishing occurs when a scammer takes advantage of someone else’s identity and photos to form a relationship.
- Blackmail occurs when a scammer tries to get close to a victim, and will most often ask for intimate pictures and start intimate conversations. They will then publish or threaten to post the information on their website and only remove it if they are paid a high fee. It is impossible to remove everything published because others have access.
- Money Laundering occurs when a scammer asks the victim to send money or goods, such as stolen laptops or cellphones. Some scammers will ask their victims to send them cash, checks and packages.
- Swindling has become the most popular online dating scam. Scammers will win the victim’s trust and affection, and then ask for money or help in what appears to be a legitimate reason such as an emergency medical situation or accident. When they have the money or when they are no longer able to help, they will cut off contact.
Avoiding Internet Dating Scams
To avoid Romance scams, it is important to pay attention to details and do your due diligence. You may not see some signs, but they are there.
- To avoid catfishing, you can request to meet up in person. Profile inconsistencies such as age and photos can be noted.
- You can do a reverse image-search on the profile photo to see if it appears anywhere else online.
- Keep a slower pace, as scammers are likely to try and fake intimacy by asking for personal information or declaring their love as early as possible.
- Use a dating site or app to communicate, or an email you don’t normally use. If you notice any grammar errors or sentences that don’t make sense, it could be a scammer. Don’t send any money, items, or personal information to anyone you haven’t met.
If you think you may be a victim of an Online Romance Scam, contact our Online Dating Investigations Division. This dividion is managed by a court recognized Expert on Internet and Social Media Investigations. A 28 year veteran of the Vancouver Police Department with 12 of those years being spent in the Technological Crimes Unit. This Team of Experts have Extensive Investigative Experience with International Cyber Scams and other Online related Investigations.
For any other information or to request a free consultation, contact us at Haywood Hunt today. We’re here to help!