Love is in the air (and on your dating apps), but so are online scammers!
The National Anti-Scam Centre warns Aussies to be wary of investment scams disguised as romantic connections.
In 2023, Aussies reported 484 romance-baiting investment scams to Scamwatch, amounting to $40 million in losses.
“Online dating and social media connection is a common way to meet new people, but it also presents an opportunity for scammers to deceive people and take advantage of their trust,” ACCC Deputy Chair Catriona Lowe said.
“We are urging people to not take financial or investment advice from someone they have only met online. Even if you think you know who you are messaging, remember that it could be a scammer on the other side of the screen.”
According to Big Four bank NAB, internal data collected on love scams last year increased by 29 per cent.
In the next few weeks, NAB plans to introduce payment alerts to digital banking to help customers spot potential romance scam red flags.
“A 65-year-old customer came into a Sydney branch recently wanting to transfer more than $1 million across three accounts for his ‘fiancée’, later revealed to be a scammer,” A NAB employee said.
The National Anti-Scam Centre and Federal Police are collaborating to combat these scams.
Linguistically diverse and old age victims
Romance scams particularly affect older Australians and diverse communities, with reports to Scamwatch showing these demographics accounted for more than 30 per cent ($12 million) of total losses last year.
Australians aged over 55 years old suffered the largest heartbreak from romance scams online in 2023.
“These scammers will spend weeks, even months, messaging their victim, making them feel like they’ve formed a genuine connection before shifting the conversation to investment or cryptocurrency opportunities,” Ms Lowe said.
“Ultimately, these ‘opportunities’ turn out to be investment scams, leaving the victim not only broken-hearted but out of pocket by significant amounts of money.”
How the scam works
So, how does the love scam hustle work, you ask?
Picture this: You match, you chat, you fall in love – or so you think.
Online love scams often start on dating apps or websites, with some scammers initiating contact through social media.
That’s when the scammer drops the investment bomb, promising crypto-riches and moonlit profits.
Victims may initially see returns, but soon realise they need to keep investing to access their funds. Eventually, the scammer disappears or demands more money.
Protect yourself
Look out for pressure to move conversations to encrypted platforms like Google Hangouts or WhatsApp, as well as promises of quick wealth through investments.
Be cautious of requests for money transfers and always verify investment opportunities independently. Remember, genuine relationships shouldn’t involve financial transactions or pressure to invest.
Don’t forget to protect your heart and your wallet this Valentine’s Day, because, in the game of love and scams, it’s better to be safe than swindled!