Key Takeaways
- Crypto romance scams involve fraudsters using deceptive schemes, such as forming an online relationship and quickly proclaiming love, to defraud individuals of money or sensitive information.
- Once an emotional connection has occurred with the victim, the scammer tries to make the victim invest in a non-existent cryptocurrency project or platform.
- A rapid progression of an online relationship coupled with video calls and the impossibility of meeting in person should be considered a red flag. Investors must remain vigilant and use common sense to avoid the scammers’ manipulative tactics.
Romance scams have been around for some time, especially for anyone who has tried online dating. And as cryptocurrency investment becomes a hot topic, crypto romance scams are becoming more common as scammers become more creative in integrating the two. This article describes crypto romance scams, or “pig butchering,” and how to avoid being a victim.
Crypto Romance Scams 101
On January 5, 2025, Hong Kong Police dismantled a crypto romance syndicate and arrested 31 suspects who had used fake romance and investment scams to defraud individuals in Malaysia, Singapore, and Taiwan of at least $4.37 million. According to the police report, the fraudsters approached victims online using A-generated images of good-looking women, and once trust was established, they persuaded their victims to invest in fake crypto platforms.
The victims, who believed they had hit a jackpot from their crypto investments, were shocked when they attempted to withdraw as they were asked to pay taxes or penalty fees first. According to research by TRM Labs, crypto romance scammers siphoned over $4.4 billion from investors in 2024. Further research from Blockchain Intelligence showed that 75% of crypto wallets linked to pig butchering displayed all the telltale signs of money laundering.
What are Crypto Romance Scams?
Crypto romance scams involve a con artist forming a fake relationship with someone they meet online. The relationships typically develop fast, with the scammer professing deep love. Once they tighten their emotional grip on their victim, they will begin employing smooth tactics to extort money from them. They pretend to be successful crypto investors and gain the victim’s interest by talking about how they enjoy financial freedom and are on the track to retire early and travel the world.
The fraudsters use tactics like love bombing to romance their victims quickly. Once someone has been baited, they try to interest them in the scam. They will mostly tell the victim how much money they make through crypto investment and entice them to start investing. They create a sense of urgency so victims can “avoid missing out.” Once a victim sends money, they will be shown how their investment is making huge returns quickly.
When they try to retrieve their earnings, the victims demand more money for taxes or other fees. That’s when most victims realize they have been scammed. In the term “pig butchering,” the gruesome metaphor used to describe this scam, the victims are the pigs that fraudsters fatten up with the promise of quick returns. Once the pigs have been fattened, the scammers lead them to slaughter, drain them of their savings, and walk away with their loot.
Red Flags of Crypto Romance Scams
An extended slow process of seduction mainly characterizes crypto romance scams as the con artists, who are usually a part of a larger group, tactfully and methodically manipulate and prime their victim for financial exploitation. Here are several telltale signs you could be dealing with a con artist:
Super Successful, Super Attractive
Most crypto romance scammers’ profile pictures are highly photo-shopped images representing good-looking strangers. Sometimes, they steal other people’s pictures or create fake AI-generated profiles. They describe themselves as hardworking business people with difficult-to-verify job descriptions. However, a reverse image search on their profiles will almost always return no results.
Everything is Generic
The job titles they list on dating sites are primarily generic, and their answers will be similar to those on sites that let you answer questions. The topic of financial freedom is a staple in the profiles, and they mainly list a job title and a location, such as “CEO in NYC” or “Entrepreneur in Los Angeles.”
Casual Introduction
The first contact with scammers will mostly come through social media platforms or dating sites. They always begin with innocent-looking texts that may appear from a “wrong number” but are quickly followed by a chatty introduction as they try to get in with themselves as a new friendly acquaintance. The first encounters are primarily casual, fun, and flirty at the beginning.
Daily Check-Ins and Frequent Pictures
After initiating contact, they quickly try to build a relationship with a false sense of trust and intimacy. They greet their victims warmly daily and carefully solicit information about their personal lives. In the meantime, they share pictures showing domestic scenes and everyday events, which are mostly staged or stolen from social media profiles. They are always overly complimentary, praising the intelligence of their victims and pretending to want to learn from them.
Always Available
The scammers work in teams, and as a result, they are always available online day and night across multiple shifts, meaning they will always be available and responsive. While the fraudsters are interchangeable, the important victim details are noted down, and they will always seem like the same person since they work as a team with a similar target.
Daring You to Dream Big
They make aspirations and declarations on their desire to help people achieve their dreams and start by encouraging victims to embrace bigger ambitions and aim higher. Once they weaken their victim’s conventional habit of prudence and restraint through a portrayal of a lifestyle of wealth and luxury, they introduce the subject of their success and passion for crypto investment, which they claim to have learned from a close friend or family member. Finally, they propose to teach their victim their secret investment technique, making their romantic connection seem more plausible and attainable.
How to Avoid Falling for a Crypto Romance Scam
Investors who become victims of crypto romance scams will have undergone weeks or even months of psychological and emotional manipulation, “fattening,” before they eventually realize they have been defrauded. What follows is a difficult stage of recovery when they know they have silenced their inner doubts as greed or ignorance pushes them to pursue a fantasy. Since it can be challenging for most people to distinguish between fact and fiction, it is essential to stay informed and avoid falling victim. Taking the following precautions could help you remain safe:
- Think rationally and not emotionally when you meet a person online who volunteers to show you how to make money through crypto investment without invitation. It is safer to doubt anyone whose behavior fits the description we have given above or demonstrates reasons to make you suspicious until they prove otherwise.
- Relating with someone you’ve never seen physically, even though a video call throughout your engagement should be a red flag for a scammer. Moreover, any relationship that develops too quickly and soon gets combined with investment issues should be a cause for concern and a signal of a potential scam.
- Use reverse image search to verify your contacts’ profile pictures to see if they use AI-generated images or another person’s picture.
- Most scammers try to hide their location and identity by insisting on transferring investment funds as gift cards, prepaid cards, or cryptocurrency.
Conclusion
As crypto romance scams become the order of the day, investors must exercise caution whenever they engage in an online relationship that promises excellent opportunities. You must be skeptical of a stranger who asks you to invest in cryptocurrency, especially when it is tied to an online romantic relationship. In addition to using common sense before you make a crypto investment, always verify the legitimacy of crypto platforms to avoid falling for scammers’ tricks. By implementing the strategies mentioned here, remain vigilant online to create a safer digital space for everyone.
