$450,000 cryptocurrency scam unfolds from a meeting on a dating app
Shreya Datta, a technology professional from Philadelphia, fell victim to a cryptocurrency romance scam called “pig butchering” and lost nearly $450,000. This type of scam, where fraudsters pretend to be romantically interested in their victims to get them to invest in non-existent cryptocurrencies, is becoming increasingly popular.
Datta’s case involved a man named “Ancel” whom she met on the dating app Hinge. Ancel claimed to be a French wine trader and convinced Datta to invest in a fake crypto trading app. Believing that her investment had doubled, Datta ended up depleting her savings, taking out loans, and liquidating her retirement fund. However, when she tried to withdraw her funds, she was asked to pay personal taxes, which made her suspicious. After a further investigation by Datta’s brother, it was discovered that Ancel’s photos were actually of a German fitness influencer, exposing the scam.
This incident left Datta emotionally devastated, suffering from symptoms of post-traumatic stress disorder (PTSD), and facing financial insecurity. Cryptocurrency romance scams like Datta’s have seen a significant increase, with the FBI’s Internet Crime Complaint Center reporting over 40,000 cases and losses exceeding $3.5 billion in 2023. These scams often employ sophisticated tactics, such as deepfake videos and AI-generated profiles, making it difficult for victims to detect and for authorities to combat.
Law enforcement agencies and dating platforms are struggling to address the rise in these scams, as victims often feel ashamed and do not report their experiences. These scams are linked to transnational criminal organizations that exploit trafficked individuals to carry out their schemes and transfer stolen funds overseas.
Another incident reported by Crypto.news involved a man from Minnesota who was deceived through a scam that started on LinkedIn. He was led to believe that he was making a profitable crypto investment due to a fake romantic interest.
Statistics reveal a concerning trend in the prevalence of romance scams. The Federal Trade Commission (FTC) reports that tens of thousands of people are affected, with losses amounting to billions of dollars each year. Senior citizens are particularly vulnerable and tend to suffer larger losses. The FTC notes that the median loss for older individuals significantly surpasses that of other age groups, indicating that these scams not only occur frequently but also have a particularly devastating impact on older people.
