Victim Details How Scam Unfolded
The Colorado Bureau of Investigation has opened a case involving a cryptocurrency romance scam that cost a local man his entire $1.4 million retirement savings. The victim, who spoke anonymously with his identity protected, described how what began as a dating website connection turned into a devastating financial loss.
According to the man, his troubles started when he joined a dating platform during marital difficulties. He connected with someone calling herself Erin, and their conversations gradually shifted from romance to investment opportunities. The victim explained that he trusted this person because he felt they had developed a genuine romantic connection, even though they never met in person.
The Scam’s Progression
The scheme began with the victim sending money to what appeared to be legitimate cryptocurrency applications. But eventually, he was directed to transfer funds to a fake application controlled by the scammer. Over time, the man lost his entire $1.4 million retirement nest egg.
“If it’s too good to be true, it’s not true,” the victim told reporters, speaking from behind a silhouette with a disguised voice. He mentioned that investigators have told him they’ll continue working the case, hoping for a breakthrough that could expose the entire operation.
Law Enforcement’s Approach
CBI Special Agent Zeb Semester described this as the largest crypto scam loss he’s ever encountered. “The largest amounts of losses that we see are in these crypto cases, like that, with investment scams,” Semester said. He explained that while these cases aren’t necessarily difficult to investigate, law enforcement often takes a different approach because the perpetrators are typically overseas.
Rather than trying to apprehend the scammers directly, authorities focus on recovering the stolen funds. “We’re not going after the perpetrators because most of them are going to be overseas. And it’s extremely hard to narrow down who those people are,” Semester noted.
Growing Trend of Crypto Romance Scams
According to the Better Business Bureau’s 2024 Scam Tracker report, investment scams involving digital assets are currently the riskiest type of fraud. While romance scams rank third on their list, BBB Director of Foundation Meghan Conradt pointed out that romance and crypto investment scams frequently overlap.
“Unfortunately, this is something we at the Better Business Bureau see a lot of. And it’s actually been increasing over the last couple of years,” Conradt said. She attributed the prevalence of crypto scams to the industry’s relative newness and lack of regulation compared to traditional financial institutions.
Conradt explained that cryptocurrency doesn’t offer the same consumer protections available in conventional banking. “It’s something people aren’t really educated about and don’t know a whole lot about,” she noted. “It’s a little bit like the Wild West out there. And the value of it can swing dramatically every day.”
Authorities have observed a rise in crypto romance scam cases over the past year, with many elderly individuals becoming victims. Some follow the pattern of “pig-butchering” scams where victims are gradually groomed before being financially exploited, while others are more straightforward fraudulent schemes.
Law enforcement officials are urging the public to be cautious of online relationships that quickly turn to financial discussions, particularly those involving cryptocurrency investments. They emphasize the importance of verifying investment opportunities through legitimate channels and being skeptical of promises that seem unusually profitable.
