Hinge Romance Scam Niki Hutchinson

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Niki Hutchinson and Her Father

Niki Hutchinson knew nothing about cryptocurrency, and decided based on the advice of someone she met online named Hao to invest her money on a platform named "ICAC". The platform purported to be generating her profit, and so she invested more money. Finally, when she went to withdraw, she was informed of owing a very large tax bill of $380,000. She was unable to get any of her money out of the platform and has gone public on multiple news outlets about her story.

About Niki Hutchinson

Niki Hutchinson was a 24-year-old social media producer from Tennessee. As a way to make new friends before moving to California, Hutchinson began to use the online dating website "Hinge." She was visiting a friend in California when she matched on Hinge with a man named Hao, who said he lived nearby and worked in the clothing business. They soon became friends.

The two continued texting on WhatsApp for more than a month after she returned home. She told Hao that she was adopted from China; he told her that he was Chinese, too, and that he hailed from the same province as her birth family. He started calling her “sister” and joking that he was her long-lost brother. They even video-chatted once, but Hao only partly showed his face and hung up quickly.

“I thought he was shy,” she said.

Ms. Hutchinson had just inherited nearly $300,000 from the sale of her childhood home, after her mother died.

Hao suggested that she invest that money in cryptocurrency." "After losing her mom, 24-year-old Nicole Hutchinson inherited her mother's house which she sold and split the proceeds with her father. The $280,000 she inherited was supposed to go toward helping her family and building a life in California.

“I want to teach you to invest in cryptocurrency when you are free, bring some changes to your life and bring an extra income to your life,”

“You hear all these stories about people becoming millionaires,” she said. “It just felt like, oh, well, cryptocurrency’s the new trend, and I need to get in.”

"I'm like, 'I've never invested in my life.' I don't know anything about cryptocurrency either. So I was very skeptical," she said. Hutchinson said that Hao reassured her that this was an area he knew well.

"Eventually she agreed, sending a small amount of crypto to the wallet address he gave her, which he said was connected to an account on a crypto exchange named ICAC. Then — when the money appeared on ICAC’s website — she sent more."

"Hutchinson said Hao told her to create an account on a legitimate site, Crypto.com. Then she said he sent her a link and told her to transfer money to the new link, to what he said was a cryptocurrency exchange platform."

"She couldn’t believe how easy it had been to make money, just by following Hao’s advice. Eventually, when she’d invested her entire savings, she took out a loan and kept investing more."

"He just kept saying things of, like, 'Look at this money that can help support your family.' Obviously that's what I wanted to do," she said.

"When her account began showing profits, she suggested to her father that he invest too and so he did."

"By December, their accounts showed a combined balance of $1.2 million, and Hutchinson decided it was time to cash out." "Ms. Hutchinson started to get suspicious when she tried to withdraw money from her account. The transaction failed, and a customer service agent for ICAC told her that her account would be frozen unless she paid hundreds of thousands of dollars in taxes. Her chat with Hao went silent."

“I was like, oh, God, what have I done?” she said.

"I messed up my life. I messed up my dad's life," Hutchinson said.

"When she tearfully told her father about the scam, he comforted her."

"All I could do was just hug her and tell her 'It's okay. It's okay.' And it was hard. It was hard. It was, we lost everything," Melvin Hutchinson said.

"Now, Ms. Hutchinson is trying to pull her life back together. She and her father live in their R.V. — one of the few assets they have left — and she is working with the local police in Florida to try to track down her scammer."

"Ms. Hutchinson doesn’t expect to get her money back, but she hopes that other people will be more cautious about strangers who promise to help them invest in cryptocurrency."

"I just hope others don't have to fall for it. So if me sharing this story helps that, then I'm so grateful for that opportunity," she said.

"Romance scams — the term for online scams that involve feigning romantic interest to gain a victim’s trust — have increased in the pandemic. So have crypto prices. That has made crypto a useful entry point for criminals looking to part victims from their savings."

"About 56,000 romance scams, totaling $139 million in losses, were reported to the Federal Trade Commission last year, according to agency data. That is nearly twice as many reports as the agency received the previous year. In a bulletin last fall, the Federal Bureau of Investigation’s Oregon office warned that crypto dating scams were emerging as a major category of cybercrime, with more than 1,800 reported cases in the first seven months of the year."

"Experts believe this particular type of scam originated in China before spreading to the United States and Europe. Its Chinese name translates roughly as “pig butchering” — a reference to the way victims are “fattened up” with flattery and romance before being scammed."

"Jan Santiago, the deputy director of the Global Anti-Scam Organization, a nonprofit that represents victims of online cryptocurrency scams, said that unlike typical romance scams — which generally target older, less tech-savvy adults — these scammers appear to be going after younger and more educated women on dating apps like Tinder, Bumble and Hinge."

“It’s mostly millennials who are getting scammed,” Mr. Santiago said.

"Jane Lee, a researcher at the online fraud-prevention firm Sift, began looking into crypto dating scams last year. She signed up for several popular dating apps and quickly matched with men who tried to offer her investing advice."

“People are lonely from the pandemic, and crypto is super hot right now,” she said. “The combination of the two has really made this a successful scam.”

"Ms. Lee, whose company works with several dating apps to prevent fraud, said that these scammers typically tried to move the conversation off a dating app and onto WhatsApp — where messages are encrypted and harder for companies or law enforcement agencies to track."

"From there, the scammer bombards the victim with flirtatious messages until turning the conversation to cryptocurrency. The scammer, posing as a successful crypto trader, offers to show the victim how to invest his or her money for fast, low-risk gains."

"Then, Ms. Lee said, the scammer helps the victim buy cryptocurrency on a legitimate site, like Coinbase or Crypto.com, and provides instructions for transferring it to a fake cryptocurrency exchange. The victim’s money appears on the exchange’s website, and he or she starts “investing” it in various crypto assets, under the scammer’s guidance, before the scammer ultimately absconds with the money."

"What makes this particular scam so insidious is how much more elaborate it is than the Nigerian prince scams of yore. Some victims have described being directed to realistic-looking websites with charts and tickers showing the prices of various crypto assets. The names and addresses of the fake exchanges are changed frequently, and victims are often allowed to withdraw small amounts of money early on, making them more comfortable depositing larger sums later."

“This kind of scam is quite labor-intensive and time-consuming,” Mr. Santiago, of the Global Anti-Scam Organization, said. “They’re very meticulous in their social engineering.”

"Cryptocurrencies are particularly useful to scammers, experts say, because of the relative privacy they offer. Bitcoin transactions are publicly visible, but because digital wallets can be set up anonymously, technically sophisticated criminals can obscure the trail of money. And because there is no central bank or deposit insurance to make victims whole, stolen money usually can’t be recovered."

"Rich Sanders investigates cryptocurrency scams as co-founder of the company Cipherblade. When he looked at Hutchinson's transactions, he described it as a "pig-butchering scam."

"The name really comes from the fattening up before the slaughter," Sanders said.

"In Hutchinson's case, he found her money started in those legitimate cryptocurrency accounts but the links the crooks told her to transfer the money to were digital wallets belonging to the scammers."

"Cipherblade's review found additional fake accounts the company says appear to be linked to the same scammers. The company told CBS News that the scammers may have stolen more than $20 million."

"Sanders said that the money likely went to an organized ring of scammers operating out of Asia who prey on inexperienced victims."

This exchange or platform is based in United States, or the incident targeted people primarily in United States.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

• Known history of when and how the service was started.
• What problems does the company or service claim to solve?
• What marketing materials were used by the firm or business?
• Audits performed, and excerpts that may have been included.
• Business registration documents shown (fake or legitimate).
• How were people recruited to participate?
• Public warnings and announcements prior to the event.

Don't Include:

• Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
• Anything that wasn't reasonably knowable at the time of the event.

There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

• When the service was actually started (if different than the "official story").
• Who actually ran a service and their own personal history.
• How the service was structured behind the scenes. (For example, there was no "trading bot".)
• Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - Hinge Romance Scam Niki Hutchinson

Date	Event	Description
December 3rd, 2021 2:56:56 PM MST	Largest Transfer	The largest reported transfer of 73,470.507957 USDT is made from Niki's Coinbase wallet to the scammer's wallet. TBD - The CBS article reports a smaller transfer of 26,450.862441 USDT, however no address was provided and this hasn't been located on the blockchain.
December 10th, 2021 2:07:24 PM MST	Large Transfer	A transfer of 48,985.92145 USDT is made from Niki's Coinbase wallet to the scammer's wallet.
February 21st, 2022 3:00:00 AM MST	New York Times Coverage	The situation is covered in the New York Times article along with a similar situation involving Tho Vu. TBD add summary of article.
February 22nd, 2022 4:02:00 PM MST	CBS News Coverage	The situation is covered by CBS. This includes a full video where Niki and her father recount the situation, some of the transfers made, and more about her current family and living situation. The article inaccurately reports the exchange used as Crypto.com and reverses the order of two of the transactions. TBD any more information here?
February 23rd, 2022 7:43:00 AM MST	USA Today Coverage	The situation is covered by USA Today. TBD Check differences in article over time.
February 24th, 2022 7:18:00 AM MST	KFOR News Coverage	The situation is covered in a KFOR news article. TBD
December 3rd, 2022	Listed as Scam To Avoid	The incident receives specific mention in a TechResearchO blog post.

Total Amount Lost

The total amount lost has been reported as $390,000 USD.

Reported blockchain transactions add up to a total of 148,907.291848 USDT.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

Total Amount Recovered

There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

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General Prevention Policies

Always perform research on potential platforms to use.

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.