|
Getting your Trinity Audio player ready...
|
By: Benyamin Davidsons
Attorney General Letitia James has issued a warning about an increase in online romance scams in New York. As reported by the NY Post, fraudsters are increasingly using dating apps, social media and unsolicited text messages to lure New Yorkers into making phony investments, many times in crypto currency.
The scam is called “pig butchering,” and it entails befriending the victims — or fattening them up with beguiling stories — and then butchering them financially. “New Yorkers hoping to find romance and personal connections online are instead being taken advantage of and victimized by heartless scammers,” said Attorney General James on Thursday. “Sophisticated fraudsters are increasingly using dating apps and social media to trick users into bogus investment schemes. The personal and sometimes romantic nature of these scams can often leave their victims feeling ashamed and isolated. New Yorkers who fall victim to these frauds should know they are not alone. I encourage anyone who believes they may have been a victim of an online romance scam to contact my office.”
A whopping two-thirds of the cryptocurrency-related complaints fielded by James’ office are related to these online crimes, a spokesman said. The scammers typically spend a good amount of time just giving victims the impression that they are in a romantic or otherwise close personal relationship. After trust is gained, then they move the discussion towards trading or investment opportunities. Scammers send screenshots of their own purported high balances on trading platforms or share photos of their supposed lavish lifestyles, to drive in the idea that they are successful investors. As the tide shifts, the platform used for touching base is also moved over to an encrypted chat platform, like WhatsApp or WeChat, where it is easier for perpetrators to shield their true identities.
The perpetrators ultimately pitch a bogus investment, convincing the victim to deposit the funds into the scammer’s platform. Victims are tricked out of large sums of money, with individual scams ranging from tens of thousands to over $1 million, often in cryptocurrency or foreign currencies, James said. In some cases, victims are referred to what appears to be a legitimate website, but it’s actually spelled slightly different than the name of the actual familiar institution. Victims are led to believe that they are making fantastic returns thanks to their friendship with an investment expert.
Per the AG’s website, the scam often starts with more modest investments, in which the victims see their account balances increase on the purported online statements or platform. These returns lead the victims to typically place more trust in the scammers and pour additional funds in. After the victims have deposited a good amount of money into the scammer’s platform, then they will be unable to withdraw the funds or sometimes will be asked to prepay fake withdrawal fees or taxes with the promise that their investment gains will thereby be released. Eventually, the scammers cut off all contact, leaving a substantial hole in the victim’s digital wallet.
Per the Post, fraudulent crypto investment schemes have turned into a billion-dollar industry globally. In all, scammers have duped individuals out of a shocking $75 billion worldwide, The Post reported in March. Many times, the perpetrators are not themselves actually in NY, but rather in other countries.
In May, in a recent bust, US authorities arrested two Chinese nationals in a cryptocurrency scam that laundered over $73 million.
