Modus operandi and blockchain analysis of romance scams: cryptocurrency-driven victimization
OA Version
Citation
Abstract
Crime happens in relationships, including romantic ones. A significant portion of intimate crimes are financially motivated, frequently leveraging emotional manipulation as a core tactic. In the digital realm, romance scammers often initiate contact with individuals through dating applications, gradually build trust, and ultimately exploit emotional bonds to extort money under various pretenses. Increasingly, the proceeds of these scams are laundered through cryptocurrency, further complicating efforts to trace and disrupt illicit financial flows. This study examines three key components of cryptocurrency-driven romance scams: (1) the modus operandi employed by scammers, (2) the financial deception strategies used to defraud victims, and (3) the patterns of cryptocurrency laundering techniques. Using self-reported data from Chainabuse.com from May 2022 to October 2024, 107 verified cases were analyzed through descriptive statistics, ordinary least squares (OLS) regression, and blockchain forensic mapping analysis. Findings reveal that Bitcoin and Ethereum are the most frequently used cryptocurrencies in romance scams and are significantly associated with monetary losses. In terms of modus operandi, Tinder emerged as the most common platform for initiating contact, with WhatsApp used for continued communication. Regarding financial deception, 54.2% of cases involved fraudulent investment schemes, while 43.0% featured fabricated emergency scenarios. With respect to cryptocurrency laundering techniques, scammers frequently used mixers (78.5%), self-funding (45.8%), and swapping (43.0%) to obscure transaction trails. Notably, the use of mixers was positively associated with monetary losses at the individual level monetary losses, while the number of swaps was negatively correlated with losses at cluster level. Interestingly, the use of swap tools such as MetaMask was linked to greater financial losses in cluster level analysis. Preferred exchanges used for laundering were also identified, with platforms such as OKXs being associated with financial losses negatively. Furthermore, direct deposits to scammer wallets were negatively correlated with monetary losses at both individual and cluster levels. This study contributes to the understanding of romance scams involving cryptocurrency by analyzing scammers’ tactics, preferred cryptocurrencies, platforms, laundering techniques, and exchanges, as well as their relationship with monetary losses. It highlights the complexity of tracing illicit digital transactions and emphasizes the need for advanced investigative tools, risk-based investigative prioritization, and broader public awareness campaigns to strengthen prevention efforts, law enforcement responses, and victim protection.
Description
2025