Nebraska sees $6M crypto scam losses from romance fraud

Nebraska’s Attorney General Mike Hilgers issued a warning last week about a rise in cryptocurrency scams linked to online romance fraud that have cost residents millions of dollars.

The alert follows multiple reports of victims losing six-figure sums after being targeted by schemes involving fake crypto investment platforms and manipulative online relationships.

According to the Nebraska Attorney General’s Office, scammers encourage small initial investments through fraudulent trading apps and platforms.

They then provide fake bank statements and documents to convince victims their investments are growing.

After gaining trust, scammers pressure victims to increase their investments to chase higher returns.

Many scams begin with the formation of fake romantic relationships online, particularly targeting seniors.

Once trust is established, conversations shift toward investment opportunities promising high returns with little risk.

“These scammers are devastating Nebraskans and, at times, stealing someone’s entire retirement or life savings,” Hilgers stated.

He urged residents to exercise caution with crypto investments that promise high returns with little risk.

The alert advises against sending money to anyone met only online.

It warns that requests to discuss investments on encrypted apps like Telegram or WhatsApp, or unfamiliar websites, are likely scams.

“Crypto scammers will likely promise rewards that sound too good to be true with little risk,” the alert notes.

Victims are encouraged to contact their financial institution or cryptocurrency exchange immediately to attempt fund recovery.

Incidents should also be reported to the FBI’s Internet Crime Complaint Center.