The scam operation relied on typical tactics such as allowing initial small profit withdrawals to build trust, claiming "taxation" and "credit score" fees as pretexts for requesting more money, and then resorting to threats and intimidation once victims ran out of money. The worst-case individual loss described in the complaint was that of a victim from Mentor, Ohio, who lost approximately $663,352 in total ($250,000 in initial investment, $174,400 in "release fees," $238,946 in "handling fees"). 'Romance baiting' scams can be devastating for victims, so looking for red flags and taking your time to confirm investment platform legitimacy is crucial. Convinced they're making a profit, the victims invest increasing amounts, but when they attempt to make any significant withdrawals, they hit various problems that prevent them from completing the action. The complaint names five victims from Ohio, Michigan, California, Utah, and North Carolina, who collectively lost over $1.6 million. Bill Toulas Bill Toulas is a tech writer and infosec news reporter with over a decade of experience working on various online publications, covering open-source, Linux, malware, data breach incidents, and hacks. The U.S. Department of Justice (DOJ) has seized over $8.2 million worth of USDT (Tether) cryptocurrency that was stolen via 'romance baiting' scams. Previously referred to as 'pig butchering,' in this type of financial fraud victims are manipulated into making investments on fraudulent websites/apps that showcase massive returns. As explained in the complaint, Tether Limited froze the funds in June 2024, burned the original USDT tokens, and reissued them into law enforcement-controlled wallets in November 2024. The seizure opens the pathway for restitution to known victims, as well as others whom the FBI is attempting to locate by backward tracing the seized wallets.
This Cyber News was published on www.bleepingcomputer.com. Publication date: Sat, 29 Mar 2025 17:55:15 +0000