Cryptocurrency romance scams, a distressing trend where fraudsters feign romantic interest to deceive victims into investing in digital currencies, are increasingly victimizing individuals. One such case involved Shreya Datta, a tech professional from Philadelphia, who lost nearly $450,000 to a scam known as “pig butchering.”
A Costly Encounter on a Dating App
Datta’s ordeal began with a match on Hinge with a man named “Ancel,” who posed as a French wine trader. The conversation soon moved to WhatsApp, where they shared messages and selfies. Ancel persuaded Datta to invest in a sham crypto trading app, leading her to deplete her savings, obtain loans, and cash out her retirement funds under the belief that her investment had significantly grown.
The Scam Unravels
The scam came to light when Datta attempted to withdraw her supposed earnings, only to be met with demands for a personal tax payment. This prompted further investigation by her brother, who discovered that Ancel’s photos were actually those of a German fitness influencer. The revelation left Datta not only financially ruined but also emotionally shattered, experiencing symptoms of PTSD.
A Growing Concern
The FBI’s Internet Crime Complaint Center reported over 40,000 cases of cryptocurrency romance scams in 2023, with losses surpassing $3.5 billion. These scams are becoming more sophisticated, employing tactics like deepfake videos and AI-generated profiles, complicating detection and law enforcement efforts.
Victims often remain silent due to shame, exacerbating the challenge of combating these crimes. The scams are tied to transnational criminal organizations that utilize trafficked individuals to carry out their schemes, directing stolen funds abroad.
Other Victims and Wider Trends
This phenomenon is not isolated. Another case involved a Minnesota man who fell prey to a similar scam initiated on LinkedIn. The Federal Trade Commission (FTC) highlights the alarming prevalence of romance scams, with tens of thousands affected and annual losses in the billions. Senior citizens are particularly vulnerable, suffering greater financial losses compared to other age groups, which underscores the devastating impact of these scams across different demographics.
