Crypto Scams Targeting The LGBTQ+ Dating Scene

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If there’s an opportunity to make money, scammers are going to take it and the LGBTQ+ dating scene is no exception.

Crypto fraudsters and romance scams go hand in hand, but increasingly members of the LGBTQ+ community are being targeted through a variety of apps, such as Wapo and Grindr.

The scams often follow a pattern common with so-called pig butchering scams, whereby the victim is befriended by someone who purports to have a romantic interest in them.

At some point, usually when the relationship has become more established, the conversation will turn to money and then cryptocurrency investments.

The victim will be told about an amazing opportunity that’s too good to miss offering guaranteed returns over a short space of time.

They’ll often be pressured into investing with claims that the opportunity is time sensitive, and they’ll miss out of they don’t act quickly.

If they show any reluctance, the scammer will exploit the emotional element of the relationship, such as questioning the trust of the other party or even threatening to move on.

Victims are encouraged to convert cash for crypto

Once the scammer has convinced the victim to part with their cash, they’ll be directed to open an account with a legitimate cryptocurrency exchange where they can convert fiat currency for crypto.

This crypto will then be sent to the ‘investment platform’ recommended by the ‘friend’, which invariably will be a fake site designed to imitate a real trading platform. In reality though, the crypto has been sent to wallets controlled by the scammers.

The victim will see profits accumulate in their account but when they come to withdraw their funds, they’ll be blocked from doing so, with the scammers demanding further payments to release the cash.

These often take the form of fake taxes or fees which the scammers claim need to be paid to clear legal hurdles or sort issues with a government body.

Wapo App Crypto Scam Cash Study

One man who contact The Crypto Adviser had lost his life savings to someone he met on popular Spanish gay dating app Wapo.

The scammer introduced himself as ‘Jackson’ (unlikely to be his real name) who said he was aged 29 and based in London in the UK.

The victim and Jackson hit it off and soon moved the conversation to WhatsApp where Jackson claimed he was a financial manager whose day job was cryptocurrency trading.

The victim asked Jackson to teach him how to make money trading crypto markets and Jackson directed him to sign up to a platform called Nutex.

Jackson also told him to create an account on a well-known legitimate cryptocurrency exchange where he could deposit fiat money from his bank and convert it into crypto before sending it to Nutex.

After using this fake platform for a while, the victim was then directed to an app which he downloaded directly from the scammer’s website, rather than an official store.

He continued to transfer cash to the legitimate exchange before converting it to crypto and sending it on to the wallet address provided to him through the app, all of which happened under the direction of Jackson.

Investment accumulated profits then account was blocked

To start off with, the investment seemed to be working and the victim saw successful trades being made on his behalf.

The ‘profits’ started to accumulate, and he was even able to withdraw small amounts of cash – a common ploy used by scammers to build trust and encourage victims to deposit larger amounts.

However, when the account balance had increased significantly, and the victim went to withdraw all their funds they found they were blocked from doing so.

Panicked, the victim contacted the Nutex app ‘support’ and was told that he had to pay a ‘tax’ of 20% of the value of his account, with 10% going to Nutex and the rest to the Government.

He was told that he needed to make the payment rapidly as there would be legal consequences if he failed to do so.

Fortunately, he realised that something was suspicious and didn’t make the final transfer. It was then that he did some research on the internet and found details of similar scams.

However, this was not before he’d lost more than 6,000 Euros.

The Nutex scam website and app

Both the Nutex scam website and app are typical of the type of set-ups commonly used by scammers.

They’re effectively shell trading platforms that look like the real thing but don’t offer any functionality. No crypto trading takes place and the ‘profits’ aren’t real.

Dozens of similar sites are set up by scamming groups each week and they generally last for a couple of months or so before being shut down when their usefulness has expired.

There are many ways of spotting these types of scam platforms once you know what to look for. Our scam resources page as more information on this.

Issues with report scams and fraud within the LGBTQ+ community

Most people feel embarrassed once they realise, they’ve been scammed and as such are often reluctant to tell people what’s happened.

This is especially true within the LGBTQ+ community as they may not be out to family and friends, and they’re concerned their sexuality may be revealed if they explain what’s happened.

If the scam occurred through a dating app catering for the LGBTQ+ community victims may not wish to tell those close to them or the authorities for fear of further embarrassment or, in some countries, persecution by the law.

Overcoming these barriers is vitally important as reporting a crypto scam is one of the first things you should do if you’ve become a victim.

By reporting scams, you not only increase the chances of the scammer being caught and your funds returned, but you also help other who’re facing a similar situation.

If you need advice and help navigating the world of crypto and avoiding scams, then check out the services we offer.

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