Washington, D.C. — The Commodity Futures Trading Commission today issued a Customer Advisory warning users of online dating and social media platforms about a recent increase in scams that lure victims into sending their money to fraudulent websites that claim to trade foreign currency exchange (forex) contracts, precious metals contracts, or digital assets. This advisory is part of Dating or Defrauding?, a national effort to raise awareness about romance scams. [See CFTC Press Release No. 8491-22]
While romance scams are not new, they can defraud people of any age, including individuals who are more comfortable with online dating and buying digital assets. Fraudsters may use comprehensive social media profiles and well-practiced scripts to convince their victims that they want to start a romantic relationship. Within a few weeks, or even less, the fraudsters may coax their victims into believing they are in a caring relationship.
Eventually, conversations turn to money, salaries, and the markets. The fraudsters then pose as successful traders, or have a friend or relative that is supposedly a successful trader, and offer to help the victims trade forex, precious metals, or digital assets. However, the trading platforms the fraudsters recommend are fraudulent.
Due to the nature of these scams, the victims rarely recover their funds.
The advisory, which describes the fraud more fully, includes 10 tips to help dating app and social media users protect…
