The Oregon Division of Financial Regulation (DFR) warns about texts or messages from strangers, which can indicate a “relationship investment scam.”
Department officials said scammers typically reach out on social media, build trust through fake romantic or friendly relationships, and then persuade victims to invest in fraudulent schemes, often involving cryptocurrencies.
They might falsely claim that investments have significantly grown and request more money for fees or taxes when victims attempt to withdraw money, ultimately disappearing without refunds.
Warning signs include:
• Unexpected contact Do not respond to unsolicited messages from unknown sources, especially on encrypted apps like WhatsApp or Telegram.
• Refusal to participate in video chats: A refusal could indicate the person is not who they claim to be.
• Request for financial information: Never share personal financial details with online acquaintances. If a virtual friend asks about finances, slow down the relationship.
• Invitation to invest: Be cautious of unsolicited investment advice from online-only contacts and assess their motives.
• Unknown investment opportunities: Research investment offers thoroughly using terms like “scam” and consulting unbiased professionals. Check promoter registrations using FINRA BrokerCheck.
• Unfamiliar trading platforms: Investigate before investing, especially in cryptocurrency, and understand how to withdraw funds.
• Exaggerated claims**: Be wary of promises of high returns. Fraudsters often manipulate emotions.
• Sense of urgency: Avoid trading based on nonpublic, material information.
In 2023, investment fraud resulted in $4.57 billion in reported losses to the FBI’s IC3, a 38% increase from 2022. Cryptocurrency frauds, including relationship investment scams, surged from $2.57 million in 2022 to $3.96 billion in 2023, a 53% rise. DFR’s consumer advocates: 1-888-877-4894 and [email protected].
