Modus Operandi and Blockchain Analysis of Romance Scams: Cryptocurrency-Driven Victimization

Romance scams are financially driven crimes that exploit emotional manipulation to deceive victims.Scammers gain trust, then request funds under false pretenses, frequently laundering the proceeds through cryptocurrency.Using self-reported data from Chainabuse.com (May 2022 to October 2024), 107 verified cases were analyzed using descriptive statistics, ordinary least squares (OLS) regression, and blockchain forensic analysis to examine three components: (1) the modus operandi of romance scams, (2) the financial deception strategies used to defraud victims, and (3) cryptocurrency laundering patterns.Findings reveal that Bitcoin and Ethereum are the most frequently used cryptocurrencies and are strongly associated with to monetary losses.Tinder emerged as the most common platform for initiating contact, with WhatsApp used for continued communication.Most cases involved fake investments schemes and emergency scenarios.Laundering techniques included mixers, self-funding, swapping, and peel chains.Use of mixers was linked to higher individual losses, while frequent swaps were negatively correlated with losses at the cluster level.Tools like MetaMask and exchanges such as OKX showed varying financial impacts, and direct deposits were associated with lower losses.These findings underscore the evolving sophistication of crypto-involved scams and highlight the need for advanced blockchain investigation tools, riskbased case prioritization, and public education to enhance prevention and enforcement.