The SEC’s Office of Investor Education and Advocacy (OIEA), the Commodity Futures Trading Commission’s Office of Customer Education and Outreach (OCEO), the Financial Industry Regulatory Authority (FINRA), and the North American Securities Administrators Association (NASAA) have jointly issued a statement cautioning consumers on affinity or relationship investment scams. The group mentions specifically crypto scams, pig butchering and other frauds that often leverage apparent romance ploys and fake identities.
“Long cons” or extended confidence scams, see crooks build trust with their mark over time. Frequently the criminals use social media or dating platforms to find targets for their crimes. Over time, friendships or romantic relationships emerge building trust. Once the relationship is well established the hook is set. Criminals may ask for financial help on an emergency basis, point individuals to bogus websites, or share dodgy investment offerings. Crypto is frequently used as it can be quickly moved beyond the reach of the individual.
The group notes that if you wire money outside of the United States or use crypto for an investment that turns out to be a scam, you likely will never see your money again.
While fraudsters’ strategies remain the same, separating hard-earned money for malicious intent, their tools have changed. Technology has made it simpler to deceive unsuspecting individuals and steal their funds.
If it sounds too good to be true, it is. Don’t fall prey to con men and women. Ignore unknown texts, calls, emails, and social media outreach. When in doubt, report, block, or delete.
