EXPLAINED | Crypto-Romance Scam: What Is It? How Are Scammers Reaping Millions On Silicon Valley Dating Apps?

‘Pig slaughtering’ scams are becoming rampant in California’s Silicon Valley region.

Crypto scammers often take weeks or months to gain the trust of their targets.

Source : Getty

Crypto-romance scams are now becoming a matter of major concern for users and investigators alike, as bad actors are looting millions off unsuspecting people via dating apps and other social media platforms in California’s Silicon Valley region, as per a report by the San Francisco Examiner. The Federal Bureau of Investigation (FBI) sent out a warning to the public over crypto-romance scams and ‘pig slaughtering’ instances in April, pointing out that over 4,300 complaints were received by its Internet Crime Complaint Center last year, with total losses reported to be over $429 million.

Crypto-romance scam: What is ‘pig slaughtering’?

As strange as it sounds, ‘pig slaughtering’ is a term used to refer to scams where an individual or a group of bad actors would take time to build a relationship with a victim, often putting in weeks or months of regular engagement with the target. The fake relationship is akin to ‘fattening’ up a victim before the person is looted, just like a pig is ‘fattened up’ before it gets butchered for food.

Crypto-romance scam: How do bad actors engage with targets?

Scammers would reach out to unsuspecting users on dating apps and lure them in slowly by building a fake relationship over weeks or months — as long as it takes to gain the trust of the target. The scammers would then shift the conversation from the dating platform to encrypted messaging apps, such as WhatsApp. After building trust, the scammers would dupe the victim into investing in crypto, either via a fake version of a legitimate website or by asking the victim to transfer funds to a dubious wallet address.

Crypto-romance scam: Why are Silicon Valley workers a major target?

As per the FBI warning, crypto-romance scams first originated in China in late 2019, but have now become worryingly prevalent in the US. As per Global Anti-Scam Organization, an outfit founded in June 2021 to support victims of cybercrimes, Silicon Valley workers are increasingly targeted due to their overconfidence in tech knowledge, interest in exploring crypto, and lastly, loneliness as a result of the pandemic months which has pushed thousands to dating apps as a coping mechanism.

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Two victims of ‘pig slaughtering’ scams, anonymously called Cy and R, recounted their experiences in a report by the San Francisco Examiner. Both Cy and R are now members of an online support group hosted by the Global Anti Scam Organization, which sees “at least two or three new members” on a weekly basis.

R, an IT manager by profession, reportedly lost $1.3 million to the scam after being approached via LinkedIn. The bad actor won her trust by being listed as an alumni of the same tech university she graduated from in China. After the conversation moved to WhatsApp, R said that the scammer gained her trust for over a month before getting her to invest in crypto via a fraud website. “I never thought it could happen to me because I use tech. I’ve written software," R said.

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Cy, a real estate analyst, lost $1.2 million in a similar scam. “I lost more than just money. I lost my self-confidence,” Cy said. “I have ruined my family’s lives.” Cy had to resort to psychiatric care after experiencing suicidal thoughts.

Crypto-romance scam: How can it be avoided?

As is the case with any scam, vigilance is key in avoiding such fraudulent transactions. Since scammers take every step to gain your trust, it’s understandable that it is hard to figure out a bad actor from a regular person on social media platforms. However, when it comes to executing financial transactions, it’s highly advisable to do proper research before transferring your money to a waller or a website.

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As always, if anything feels like a red flag to you when it comes to social media interactions, it’s advised that you reach out to the cybercrime unit of your local police force with screenshots of conversations to ensure proper action.