COINOTAG News, citing Decrypt, reported that a San Jose, California resident was defrauded in a cryptocurrency ‘piggyback’ scam and lost nearly $1 million after consulting ChatGPT. The losses included retirement savings and a home equity loan, highlighting the growing crypto fraud risk for individual investors.

Victim Margaret Loke connected with a man named ‘Ed’ on Facebook in May, who portrayed himself as a wealthy businessman and gradually built emotional trust. Through this romance scam, she was steered toward crypto investments, transferring more than $490,000 from retirement funds and a further $300,000 via a home‑equity loan.

When the account froze and ‘Ed’ demanded an additional $1 million to unlock the funds, Loke consulted ChatGPT, which flagged the arrangement as a known scam pattern and advised reporting authorities. Investigators traced the transfers to a bank account in Malaysia, where the funds were withdrawn by the scammer.