The United States Federal Trade Commission (FTC) has alerted the public about the increasing prevalence of romance scams that often involve cryptocurrencies.

In a recent notice, the FTC advised Americans on how to handle situations where their online romantic interest offers investment advice. “No one thinks their online love interest is going to scam them, but scammers are good at what they do,” the FTC stated.

Romance scams, often referred to as pig butchering scams, involve attackers befriending victims under the guise of a potential love interest. Ultimately, victims are tricked into making fraudulent cryptocurrency investments, and the scammers disappear.

These scams have become common in the cryptocurrency sector. A study by the University of Texas revealed that over $75 billion was lost to these schemes between January 2020 and February 2024.

The advisory, authored by Colleen Tressler of the Division of Consumer and Business Education, detailed the tactics employed by scammers to execute these frauds. According to the FTC, attackers “establish an emotional connection” to convince victims that they are “experts in cryptocurrency.”

The commission noted that scammers often promise high returns that are supposedly risk-free. However, it emphasized that all investments carry risks and guarantees on profits are false.

Moreover, the FTC stressed that scammers usually conduct a background check on their victims. This helps them say the right things to gain the victim’s trust, and “before you know it, your new friend is talking money,” the FTC added.

The regulator advised against transferring any funds, whether fiat or crypto, if requested by such parties. “If you think someone you met on social media is a scammer, cut off contact,” the notice urged.

It also encouraged users to file a report with the FTC if affected by such a scam.

Romance scams have made headlines on several occasions. In February 2024, a Philadelphia woman lost $450,000 in cryptocurrency to scammers who befriended her and pitched a fraudulent crypto trading app, convincing her to drain her savings.

The prominence of these attacks has prompted regulatory intervention from agencies like the Federal Bureau of Investigation (FBI) and the Commodity Futures Trading Commission (CFTC). The CFTC charged a crypto exchange on Jan. 20, alleging the firm’s insiders duped customers by establishing amicable and “intimate” relationships, tricking them into opening trading accounts.

The FBI also issued a warning before Valentine’s Day 2023 about the surge in romance scams. In April 2024, the Brooklyn District Attorney’s Office successfully cracked down on a similar scam that duped several individuals across the United States.

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