According to a 2022 report by the Federal Trade Commission (FTC) Crypto romance scammers conned victims out of $139 million last year, But that’s just one type of scam of many. The FTC also found that more than 46,000 consumers reported losing more than $1 billion in crypto between Jan. 1, 2021, and March 31, 2022. And that might be just the tip of the iceberg—there are likely more victims out there who didn’t report their incidents.
The scammers begin by starting a romantic relationship with a target. Eventually, they convince their mark to make investments in cryptocurrency, touting crypto as a safe way to earn money. The scammers then gain access to the accounts and steal all the assets before ghosting their target.
40% of people who said they lost money to a romance scam last year said the contact started on social media; 19% said it started on a website or app.
“Cryptocurrencies have the potential to be a safe and valuable alternative to traditional banking and credit cards,” says Monica Eaton, founder of the world’s first chargeback remediation company, Chargebacks911. “But the lack of regulation leaves consumers with nowhere to turn when they’re scammed. A credit card holder can report misuse and initiate chargebacks on fraudulent purchases. A crypto account holder doesn’t have those protections.”
Eaton advocates strongly for crypto firms to adopt a chargeback mechanism to protect consumers. Consumer protections and dispute management capabilities must be the next step in the crypto industry, whether companies voluntarily create them, or regulators demand them.
Monica Eaton, Founder of Chargebacks911, can speak on the following:
- What risks do crypto investors have in the event of a crypto romance scam?
- What should be the proposed changes to crypto oversight and regulation?
- What security measures should consumers look for before using a crypto trading platform?
To speak with Monica Eaton, contact me via khelms@jotopr.com or call 727-777-4619
