On Wednesday, the Commodity Futures Trading Commission’s Office of Customer Education and Outreach (OCEO) put out a customer advisory about romance investment scams.
The office said that in advance of Valentine’s Day, it was reminding consumers about scams on dating/messaging apps and social media when users ask for financial support or give investment advice on the platforms. Users should be wary of texts and messages from strangers promoting cryptocurrency investments, the office said. Those texts could come from international criminal organizations that trick victims into investing in cryptocurrency or foreign currency as a way to defraud them.
The scam can take advantage of even the most savvy investor, the office said, because the fraudsters often develop relationship with victims over the course of weeks through seemingly authentic text message conversations. Known as grooming, the scammers often refer to the text message scams as “sha zhu pan” or “pig butchering.”
“Financial grooming frauds can happen at any time, but Valentine’s Day is a perfect opportunity to remind people that dating and messaging apps and social media can be platforms for scams and fraudulent activity,” OCEO Director Melanie Devoe said. “As the old saying goes, if it sounds too good to be true, it probably is.”
Officials said consumers should be aware of strangers who try to move conversations from a dating or social media platform to a private messaging app, as well as those with claims of wealth from cryptocurrency or foreign currency due to insider information.
The CFTC recently filed a financial grooming fraud complaint alleging Debiex used romance scam tactics to misappropriate more than $2 million in customer funds intended for digital asset commodity trading.