As millions of consumers prepare for Valentine's Day celebrations, regulators are sounding the alarm on a sophisticated wave of romance-related investment frauds that cost victims nearly $4 billion last year.

The $4 Billion Dating Scam Targeting Your Heart

The Commodity Futures Trading Commission (CFTC) has partnered with multiple federal, state, and nonprofit organizations to launch the “Dating or Defrauding?” campaign, targeting the growing threat of relationship investment scams, commonly known as “pig butchering” schemes.

“Today, criminals are better able to hide their identities, create more fake profiles, phishing emails, and more convincing scam websites than ever before,” said CFTC's OCEO Director Melanie Devoe.

“Valentine’s Day and the following weeks provide an excellent opportunity to remind people that criminals are using social media, dating, and messaging apps to scam Americans,” she stressed. “We ask you to be alert and to help stop scams by warning your friends and family.”

The multi-agency initiative comes as romance scammers increasingly shift their tactics from traditional dating sites to cryptocurrency investments and social media platforms. Perpetrators often initiate contact through seemingly innocent “wrong number” text messages or dating apps before gradually steering victims toward fraudulent investment schemes.

Recently, the Securities and Exchange Commission (SEC) Securities and Exchange Commission (SEC) The Securities and Exchange Commission (SEC) is one of the most widely known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and curbing against abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges.As one of the paramount regulatory authorities in the US, the SEC is responsible for the oversight of public companies in the aforementioned segments.Wha The Securities and Exchange Commission (SEC) is one of the most widely known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and curbing against abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges.As one of the paramount regulatory authorities in the US, the SEC is responsible for the oversight of public companies in the aforementioned segments.Wha Read this Term took its first enforcement action against crimes of this type, targeting five entities and three individuals. The case involves two so-called “relationship investment scams” linked to fraudulent cryptocurrency trading platforms known as NanoBit and CoinW6.

‘Dating or Defrauding?’ a Joint Effort to Alert Online Daters, Social Media Users of Relationship Investment Scams: https://t.co/n7uIO6n5wC pic.twitter.com/avtZ1WoJyp

— CFTC (@CFTC) February 10, 2025

"Romance scams are among the most insidious forms of fraud, preying on emotions and trust built over months," commented Jonathan Frost, Director, Global Advisory at BioCatch. "Unlike traditional scams, fraudsters rarely ask for money outright; instead, they manipulate victims into offering financial help through fabricated medical emergencies, legal crises, or investment opportunities."

Pig Butchering

This is not the first time the CFTC has warned about romance scams, which cost consumers billions of dollars each year. Last year, during a similar campaign, the agency highlighted so-called “pig butchering” scams.

Though the name may seem somewhat vulgar, it effectively describes how these fraudsters operate. They spend weeks or even months building a victim’s trust—“fattening the pig”—and then execute the scam by asking for money or proposing a lucrative investment—“butchering.”

“Anyone can get scammed, it’s only a matter of scammers using the right script," added Silvija Krupena, Director of the Financial Intelligence Unit at RedCompass Labs. "Banks need to move away from the typical 'box-ticking compliance' culture. Instead, they should look more closely at their data and take a more proactive approach to preventing these types of crimes."

Foreign regulatory agencies have issued similar warnings in past years. In 2020, for instance, Belgium’s FSMA noted an increase in scammers using Tinder.

“Dating sites and apps such as Tinder are venues conducive to emotional scam attempts,” the FSMA warned. “These sites and apps have lately also been used to prospect for potential preys to investment fraud. Victims are mostly men. While looking for a date, they get in touch with women of allegedly Asian descent.”

The cryptocurrency exchange Cryptocurrency Exchange A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f Read this Term Coinbase has also raised concerns about such scams. Fraudsters form an emotional bond with their targets and, once the victims are vulnerable, exploit their loneliness and desire for a romantic connection.

Modern Love's Dark Side

The campaign highlights several red flags for potential victims, including requests for cryptocurrency transfers, persistent inability to meet in person, and pressure to move conversations to encrypted messaging apps. Law enforcement officials note that scammers are particularly active during the Valentine's season, when emotional vulnerability may be heightened.

The campaign emphasizes that romance investment scams affect victims across all age groups and demographics. Fraudsters typically allow victims to withdraw small amounts initially to build confidence before encouraging larger investments through fake trading platforms.

As Valentine's Day approaches, authorities are urging Americans to share fraud prevention information with friends and family, particularly those who spend significant time on social media or live alone.

Participating agencies, including the FBI, Federal Trade Commission, and Financial Crimes Enforcement Network, will share resources and warnings through the #DatingOrDefrauding hashtag. The initiative also involves state regulators and organizations like FINRA and NFA.

Moreover, the CFTC also informed this week that federal courts had ordered two cryptocurrency scammers to pay $9.1M combined in restitution for separate digital asset fraud schemes.