Protecting Seniors Against Elderly Financial Exploitation
Cryptocurrency romance scams, also known as Elderly Financial Exploitation (EFE), are a type of online fraud where the scammer typically poses as a love interest, using a fake identity and photos to gradually build a relationship and trust with a vulnerable senior through a dating site, social media platform, or other online channel. They use emotional manipulation to convince victims to send them money or gifts, using various excuses such as financial difficulties or a family emergency. They may claim to have inside information or special knowledge about the cryptocurrency market and promise high returns on investment. The scammers may even send fake crypto exchange screenshots or other documentation to create the illusion of legitimacy.
Once the victim invests in cryptocurrency, the scammer disappears, leaving the victim with no way to recover their funds. In some cases, the scammers may continue to contact their victims and ask for more money, often resulting in a loss of life savings and financial ruin.
Unfortunately, EFE remains the most common form of elder abuse. According to the Federal Trade Commission (FTC), older adults now account for 35% of victims associated with filed financial fraud reports where consumer age was provided. Yet, most incidents go unreported due to victims’ fears, embarrassment, or lack of resources. Older adults are especially vulnerable to financial exploitation due to their income and savings, declining cognitive or physical abilities, isolation, lack of familiarity with technology, and dependence on others for their wellbeing, finances, and social interaction. The COVID-19 pandemic only increased these vulnerabilities.
How to avoid cryptocurrency romance scams:
- Be wary of strangers asking for money. If someone you just met online asks you for money or asks you to invest in something, it’s likely a scam.
- Do your research. Before investing in any cryptocurrency, research the project, the team behind it, and the community’s feedback. Look for red flags such as unverifiable claims or promises of guaranteed returns.
- Verify identities. Scammers often use fake identities, so it’s important to verify the identity of anyone you meet online. Ask for a video call or a meeting in person.
- Be cautious with personal information. Scammers may use personal information to steal your identity or gain access to your financial accounts. Be cautious about sharing personal information with people you meet online.
- Don’t send cryptocurrency to anyone you don’t know. Never send cryptocurrency to someone you just met online, no matter how convincing their story may be.
At Margo, we understand the importance of protecting our users from cryptocurrency scams, especially our most vulnerable customers. We have implemented advanced security measures and utilize cutting-edge technology to detect and prevent fraud in real-time. Our team of experts are dedicated to providing a safe and secure platform for our users to invest in cryptocurrencies without fear of scams or fraudulent activities. We are committed to providing you with the tools and resources you need to make informed investment decisions.
