The Hidden Victims of Crypto Scams: How a Young Portuguese Mother Was Driven to Borrow Money to Feed Her Child

The FCA estimates that over 20% of cryptocurrency scam victims in the UK are single parents

In recent years, cryptocurrency has been hailed as the future of finance—an innovative, decentralised system offering financial freedom to anyone with an internet connection.

However, beneath this promising veneer lies a darker reality: a surge in crypto-related scams that disproportionately target vulnerable individuals, leaving them financially devastated and emotionally scarred. One such case involves a young Portuguese single mother who, after falling prey to an elaborate crypto scam, was forced to borrow money just to feed her child.

This heartbreaking story isn't an isolated incident. According to a report by the Federal Trade Commission (FTC), crypto scams cost victims over $1 billion globally in 2022 alone, with many scams specifically targeting financially desperate individuals. The complexity and relative anonymity of cryptocurrency make it an ideal breeding ground for fraudsters, particularly for scammers often referred to as "Yahoo boys," who manipulate victims online using emotional and financial bait.

How the Scam Unfolded

The Portuguese mother, whom we’ll call Maria for privacy reasons, was looking for ways to improve her financial situation. As a single mother in her late twenties, Maria was juggling the overwhelming responsibilities of parenthood while managing tight finances. When she came across what seemed like a legitimate opportunity to invest in cryptocurrency, her interest was piqued.

"It seemed too good to be true, but I was desperate," Maria recalls. "The person I was communicating with sounded so convincing—he even sent me links to news articles and forums discussing how crypto could change lives. I believed him."

Unfortunately, Maria had fallen into a well-orchestrated trap. Scammers, posing as professional traders, had set up a fake trading platform that mimicked the look and feel of legitimate exchanges.

After convincing her to invest a small sum to see instant returns, they pushed her to invest more. By the time Maria realised something was wrong, her savings were gone. Worse still, the scammers convinced her to borrow money to continue investing, claiming it was the only way to recover her initial funds.

Exploiting Vulnerability: Single Mothers at Higher Risk

Maria’s case is tragically common.

A study from the UK’s Financial Conduct Authority (FCA) found that people facing financial pressure are more likely to be lured into crypto scams, with single mothers being particularly vulnerable. The FCA estimates that over 20% of cryptocurrency scam victims in the UK are single parents—most of whom were approached through online dating or social media platforms, where scammers exploit both financial and emotional vulnerabilities.

These criminals know exactly how to manipulate emotions. They target people who are already struggling, offering hope in the form of easy money and quick profits. For single mothers like Maria, who are already stretched thin, the promise of financial stability is incredibly alluring.

In Maria's case, after exhausting her savings, she had to borrow money from friends and family to cover basic needs, including food for her child. "It was humiliating," she confesses. "I felt like a failure, not just for falling for the scam but for putting my child in a position where I couldn’t provide for him."

The Human Cost: More Than Just Financial Ruin

While financial loss is the most obvious impact, the emotional and psychological toll of these scams is equally damaging. Victims often suffer from anxiety, depression, and in some cases, trauma. For Maria, the stress of being defrauded compounded the already immense pressures of single parenthood.

"I couldn’t sleep. I kept replaying the conversations, wondering how I could have been so naive," she says. "The guilt was unbearable. I wasn’t just scammed—I felt like I had failed as a mother."

Maria's story underscores how these scams don’t just target bank accounts—they destroy lives. A survey conducted by the European Consumer Centre (ECC) revealed that 58% of crypto scam victims report long-term emotional and psychological effects, including feelings of shame and worthlessness.

The Scope of the Problem: A Global Crisis

Crypto scams have become a global epidemic.

The FTC reported that in the United States alone, over $575 million in losses were linked to cryptocurrency scams in the first half of 2022, a figure that continues to grow. Europe has not been spared either, with fraud complaints involving cryptocurrencies soaring by over 70% between 2020 and 2022, according to Europol.

What makes these scams so insidious is the difficulty in tracking and recovering lost funds. Cryptocurrencies, by design, offer a level of anonymity that makes it challenging for authorities to trace illicit transactions. As a result, many victims like Maria never recover their money.

According to a report from Chainalysis, only 10% of victims ever see restitution.

Solutions: Regulation, Education, and Accountability

The rise in crypto scams highlights an urgent need for better regulation and consumer education. The importance of educating the public about the risks associated with cryptocurrencies is critcal here. The first line of defense is awareness! Governments and financial institutions must do more to ensure people understand the risks of investing in unregulated assets like cryptocurrencies.

On a regulatory level, many consumer advocates are calling for stricter oversight of crypto platforms. In Portugal, the government is considering new legislation aimed at combating online financial fraud. This includes the potential for better monitoring of financial transactions on crypto exchanges and stricter penalties for fraudulent activities.

Yet, regulation alone is not enough. Victims need support systems in place, not just to recover financially, but to deal with the emotional aftermath. Psychological counselling and legal aid for scam victims are essential, as the long-term effects of being defrauded can be as damaging as the initial loss.

A Warning to Others

Maria hopes that by sharing her story, she can prevent others from falling into similar traps. "If I can stop just one person from going through what I went through, then at least something good can come from this," she says.

Crypto scams are evolving, and the emotional manipulation behind them is becoming more sophisticated. As long as there are gaps in regulation, a lack of public awareness, and financially vulnerable individuals, these crimes will continue to thrive. Maria's story is a stark reminder that behind every statistic is a real person whose life has been turned upside down.

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Key Statistics:

- Over $1 billion lost globally to crypto scams in 2022 (FTC)

- 20% of scam victims in the UK are single parents (FCA)

- 58% of victims report long-term psychological effects (ECC)

- Only 10% of victims recover their funds (Chainalysis)

This epidemic of financial crime is not just a legal or regulatory challenge—it’s a humanitarian one. Stronger protections are necessary to prevent more victims like Maria from being exploited, and the time to act is now.