Asian lonely hearts are reportedly being scammed out of their hard-earned money by crypto con artists who target them on dating apps. They lure victims with promises of large returns on cryptocurrency investments before draining their accounts, reports The Boston Globe.

According to blockchain data firm Chainalysis, fraudsters stole more than $1 billion from cryptocurrencies in 2021. These scams often involve phishing pages that appear legitimate but steal private keys from digital wallets.
1. Pig Butchering Scam

A scam that is growing in popularity and is stealing victims’ money has been given the name “pig butchering.” The FBI says this fraud involves a combination of a romantic relationship and a fraudulent cryptocurrency-investment scheme.

Pig butchering is a crypto scam that uses fake apps to get victims to put their money into bogus trading platforms. These apps are manipulated to make it appear that their users are making profits, which encourages more investment. The scam often targets single women over the age of 25 and those who have large savings.

Scammers will contact potential victims using a dating app or chat application. They may claim that they have a friend or family member who has asked them to help. They will also say that they have a job, or are studying a certain subject, or are looking for a new job.

They will then try to build rapport by sharing their hobbies and interests. They will often share photos of themselves to pique the victim’s interest and ask them to join their social media pages or chat groups.

Once they have a potential victim’s trust, they will start contacting them by phone, email or on social media to discuss their phony investment opportunities. They will promise high returns and ask the victim to deposit money into a crypto exchange or app.

The scammers will then convince the victim that their investment is growing significantly, and they will ask for more money to continue the investment. They will even demand different types of fees to withdraw the money, which can be a lot.

Ultimately, the victim will lose their entire savings to this scam. The FBI reports that victims lose a average of $180,000 to this type of scam.

This is a blatant scam, so don’t send money or trade with someone you haven’t met. You should report the person to the social media platform or to the authorities if you believe they are a scammer.

This kind of scam can be difficult to detect, so it’s important to monitor your finances regularly. You can do this with an identity theft protection service like Aura. Aura will let you know if there is suspicious activity in your bank or credit accounts. You can also use the service to monitor your social media and email accounts.
2. Ponzi Scheme

Asian cryptocurrency scams are taking advantage of a lack of knowledge and interest in this new digital asset. The Globe reported that victims are often persuaded to invest by people they met on social media or a dating app, who use a bogus investment platform to steal their money. They often start with small amounts of money, allowing their victims to withdraw a few times to convince them that the scheme is legitimate. Once the victim is convinced, they invest more money in the fake investment platform, resulting in significant losses for them.

The FBI defines a Ponzi scheme as an investment fraud where a con artist pays "returns" to investors from the investments of subsequent investors rather than from earned profits. This is because the operator must continually bring in new funds to continue paying the promised returns to current investors.

When the investor's money is used to pay off earlier investors, it creates a cycle of losses and payments that ultimately leads to a Ponzi collapse. A typical scheme involves a promoter who promises high returns for a low or no-risk investment. This type of promise is a red flag, because any legitimate investment has risk.

Another warning sign is a promise of overly consistent returns regardless of market conditions. This type of promise is a common tactic in Ponzi schemes, where the operator promises to return their investors' money in a specific amount of time.

As the economy continues to become increasingly volatile, a lot of people are looking for ways to make money. Cryptocurrency is a trend that has grown in popularity over the last few years. The cryptocurrency industry is expected to be worth $70 billion in 2021.

However, the number of scams has grown over the past few years, and a growing number of people are falling prey to these scams. Many of the scams are run by Chinese nationals. The International Organization for Migration (IOM) reports that a large number of Filipinos are trafficked into these operations.

According to the Globe, victims are often recruited by a friend or colleague who is familiar with the technology and shares the same cultural background as the victim. The victim is then persuaded to invest in a fake crypto platform, which is typically controlled by the scammer. The scammer encourages their victims to withdraw small amounts of their money at first, so they can see a modest profit. Once the victims have deposited larger amounts into the fake platform, the scammer disappears, stealing their entire investment.
3. MLM Scam

Multi-level marketing (MLM) is a business model that allows people to earn money by selling products and recruiting others to do the same. Participants in MLM programs typically receive commissions on the sales of their own products and those of their recruits, as well as bonuses for meeting sales goals.

In recent years, MLM scams have been on the rise worldwide. They target vulnerable groups, including immigrants, the homeless, and the poor. They also target young adults, who often feel depressed and unsupported.

Scammers use the Internet to lure victims with enticing promises of financial success. They may claim to have made significant profits in cryptocurrency, or suggest that the victim should “invest” their money.

They often build a relationship with the victim over social media, dating sites or even WhatsApp, attempting to lure them into transferring large sums of money. The scammer will then provide fictitious financial statements to make it appear their investments are making large returns, according to the Globe.

The victims are then coaxed into sending more and more money, sometimes even claiming to have a friend who will help them invest. They are also manipulated into using their own money to transfer cryptocurrencies to the scammer’s account, where they are promised growth and profit.

These shady transactions can cost victims substantial amounts of money, especially for those who are not familiar with investing or trading. The victims’ savings can then be wiped out by the scammers, and they will have no alternative but to seek financial assistance from family members or friends.

In addition to the financial costs, MLM scams have a physical and social impact on victims. They can leave people feeling depressed and isolated, and they can even lead to suicide attempts.

Fortunately, there are several ways to avoid MLM scams and pyramid schemes. One is to carefully research the business and check for complaints. Another is to check with your state attorney general’s office to see if the business has been regulated.

Despite their reputation as legitimate businesses, MLMs and pyramid schemes are scams that can be devastating to your finances. The best way to protect yourself is to research the company before you join and to check with your state attorney general for any complaints filed against it.
4. Romance Scam

Romance scams are a type of advance fee fraud that is conducted by international criminal groups via online dating sites and social networking platforms. Victims of romance scams often lose large sums of money.

Criminals create fake profiles on these websites to feign romantic interest in another person, using stolen photos and a made-up identity. These criminals then attempt to build an emotional attachment with the victim before scamming them out of money.

Scammers will then string the victim along with requests for money over time, sometimes for years. These requests may be highly emotive and might include the need for emergency medical care or transport costs to visit the victim overseas.

Some of these scams are very well crafted and are even designed to look legitimate. The criminals often target older people who have suffered a breakup or divorce and are vulnerable to being manipulated emotionally.

Other times, these criminals will target affluent and well-educated individuals. These victims have more disposable income and can afford to be deceived into sending the criminals money.

The scammers are skilled at making the victim believe they have a genuine emotional connection, and this usually works. The victim is then tempted to send them money as a gesture of love and kindness. How can i get my stolen funds

Eventually, the romance scammer will tell you that they need your help and will begin to ask for large amounts of money. They will also ask you to wire money, put it on a gift card, or transfer it through a money transfer app.

This is to pressure you into giving them money and to make it hard for you to recover the money later on. You should always meet someone in person before you decide to send them money.

Romance scams are becoming more common, and they are affecting many people in the world. In 2019, they caused over $493 million in losses to victims across the United States and the UK, according to the FBI.