South Korean Crypto Exchanges Block $82 Million Worth of Romance Scam Transactions
According to Seoul Shinmun, Coinone, a South Korean crypto exchange, has reported a rise in romance scams involving cryptocurrencies. The exchange claims to have stopped over $2.6 million worth of scam-related trades by using an abnormal transaction detection system and 24-hour monitoring. This announcement comes after a warning from the Financial Supervisory Service (FSS) about the increase in crypto-related scams on social media platforms. The FSS advised the public to be cautious of romance scammers and unsolicited investment recommendations. They specifically warned against trusting strangers or individuals of the opposite sex who offer investment assistance.
‘Romance’ Used as Bait for Crypto Scam Masterminds
Coinone shared an example of a customer who fell victim to a romance scam, losing almost all of his crypto holdings. The man was deceived into sending his coins to a private wallet belonging to someone he believed to be the owner of a hair salon in Japan. Coinone’s staff detected suspicious activity when they noticed that the man had installed Japanese chat and translation apps on his phone. They also discovered discrepancies between the name on the wallet and the transaction request. After contacting the man, Coinone informed him that he had likely been targeted by a romance scam.
Rise in South Korean Crypto-powered Romance Scams
The FSS warned that scammers often pose as tax officials or securities providers and request payment in crypto, threatening frozen bank accounts and wallets if victims refuse to comply. Organized groups of East Asian scammers are now using dating apps to find targets. South Korean police have urged the public to be wary of individuals on dating sites who try to convince them to invest in online crypto mining projects. In 2022, a woman in South Korea was sentenced to five years in prison for drugging and robbing a man after discovering he was a crypto investor.
Hot Take: South Korean Crypto Exchanges Combat Romance Scam Transactions
Last year, South Korean crypto exchanges took action against romance scams, blocking transactions worth $82 million. These scams involve individuals being deceived by fraudsters who use cryptocurrencies as bait. Coinone, one of the exchanges, highlighted a case where a customer almost lost all their crypto holdings to a romance scam. The Financial Supervisory Service also issued a warning about the rise of crypto-related scams on social media platforms and advised the public to be cautious when receiving investment recommendations or assistance from strangers. It is crucial for individuals to stay vigilant and verify the authenticity of any investment opportunities they encounter.
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