Romance Scammers Are Wooing Victims Into Bogus Crypto Schemes

Investment scams had the highest reported losses of all categories — $5.7 billion — in 2024, up 24 percent over 2023. Fraud involving cryptocurrency was the most reported type of investment fraud, according to the FTC.

Many romance scams originate overseas in scam compounds run by international crime syndicates, as described in this episode of AARP's podcast The Perfect Scam. 

How the scam typically works

For the victims, the scam usually unfolds like this:

1. Out-of-the-blue interest in you. Criminals lurk on dating sites or may message you through social media apps such as Instagram, Facebook and LinkedIn. Some criminals pretend they are young and attractive and use fake profile photos to support that charade.
2. Errant text messages. Alternatively, scammers may attempt to start a relationship by appearing to have sent you a text meant for someone else. These texts seem mundane, asking about lunch plans or confirming an appointment. When you reply that they have the wrong number, they engage you in conversation and attempt to strike up a romance. Find out more about “oops wrong number scams.”
3. Romantic attention. Once communication has started, they soon (abnormally soon) begin love bombing, sending a steady stream of texts and emails full of flattery.
4. “Investment” talk. As the digital “relationship” deepens through a financial grooming process known as pig butchering, perpetrators persuade victims to make what is purportedly an investment in cryptocurrency. Photos of luxury cars and vacations are shared to give the illusion of new wealth and spur the victim to invest. In some cases, the scammer will feign ignorance of crypto but offer to connect them with an expert — perhaps an uncle who's a skilled investor — to help them out.  
5. Collect the money. Some instruct victims to go to a crypto kiosk (machines that look like regular ATMs) to buy digital currency and send it to them. Or they might send victims a link to purchase crypto that actually “puts [the money] in the perpetrator’s digital wallet,” AARP’s Nofziger says. If anyone ever suggests you make a payment through a crypto kiosk, they're more than likely a scammer. 
6. Demonstrate fake gains. If the victims agree to buy crypto, the still seemingly adoring criminals direct them to fabricated trading platforms that appear to show that the investment is paying off big-time.
7. Ask for more money. Sometimes victims are able to make small withdrawals from their accounts at first, but if they try to cash out, they are told they must pay a “tax.”

The apparent need to come up with the so-called tax can prompt victims to mortgage their house, deplete 401(k)s, raid their kids’ college funds or borrow from relatives, says West, who calls the crime “hideous.”

“It is a long con that’s really laser-focused on taking every penny from the victim,” she adds. “That’s why we’re literally seeing suicides. We are seeing people checking themselves into psychiatric facilities.”

How to protect yourself from this scam

• Do a reverse image search. If someone sends you photos, do a reverse image search to verify they are who they say they are. AARP suggests using these tools to search.
• Beware of people you meet online, particularly if they quickly want to leave the dating website and communicate with you through email, texts or instant messaging.  
• Keep personal information private. Banking information, Social Security numbers, copies of IDs (including passports) or other sensitive information shouldn’t be shared with anyone online.
• Talk to friends or family about new love interests. They can serve as a valuable check on your judgment when you are lost in the first flush of romantic love. Note that it’s a major red flag if your online partner insists you not tell anyone about your relationship.
• Research investment opportunities thoroughly. If you work with someone at your bank or brokerage, talk to them about any investments your new friend is touting. Get a professional's opinion. 

How to report this scam

• ​Document the crime. Keep all correspondence and a timeline of events, including when and where you transferred money to the criminals. Law enforcement will want as much detail as possible.
• Contact local law enforcement. Having all the documentation assembled may be of value if there is some means of recouping your loss. Learn more about how to report scams to the police.
• File reports with the federal government. The Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3) uses fraud reports to target their investigations; the more information they have, the better they can identify patterns, link cases and ultimately catch the criminals.  
• Find support. FINRA (Financial Industry Regulatory Authority) Foundation and Cybercrime Support Network have free 10-week counselor-led support groups for victims of romance scams. The AARP Fraud Watch Network also has free online support groups for fraud victims.
• Call The AARP Fraud Watch Network Helpline (877-908-3360). Trained fraud experts can offer guidance and support for scam victims and their families.