In Australia, victims lost over $40 million to online dating and investment scams last year, exploiting trust for financial gain.
Highlights
- Australians swindled out of millions through deceptive online relationships.
- Fraudsters build trust over months, then pitch bogus investment opportunities.
- Experts emphasize caution and the importance of scam awareness.
In an alarming trend, financial criminals have targeted Australians through popular online platforms, resulting in substantial financial losses. These scammers, often posing as potential romantic interests, engage victims in long-term conversations to build trust and emotional connections. The end game? Convincing their targets to invest in non-existent opportunities, leading to significant financial loss and emotional distress.
Recognizing the Signs
The hallmark of these scams is the initial approach—typically via dating apps, websites, or social media by someone unknown. The scammer creates an illusion of intimacy and trust through continuous communication and expressions of affection. Once a bond is established, they introduce a so-called investment scheme, often involving cryptocurrency, promising easy profits.
How the Scam Operates
The scam unfolds in stages—beginning with communication on popular platforms, then moving to private messaging apps. The ‘love bombing’ technique is frequently employed, where the scammer showers the victim with affectionate messages. Investment talk follows, with the scammer showcasing how to invest small amounts, which misleadingly appear profitable. Victims are then coerced into investing more, with threats of losing everything if they don’t comply. When victims can no longer contribute financially or seek to reclaim their funds, the scammer vanishes.
Steps to Protect Yourself
- Pause and Reflect. Avoid acting on investment advice from new online acquaintances. If something feels off, it’s better to stop and think.
- Verify Identities. Utilize internet searches and reverse image searches to confirm the true identity of new contacts.
- Act Quickly if Scammed. Contact your bank immediately if you’ve made an investment and suspect a scam. Reporting the scam to authorities like Scamwatch not only helps in potentially recuperating losses but also aids in preventing others from falling victim.
If You’ve Been Affected
Victims are urged to promptly report financial losses to their banks and the platforms where the scam occurred. Sharing experiences and reporting to Scamwatch can provide a layer of support and contribute to a wider effort against these deceitful practices. Sharing with friends and family can be both cathartic and educational, helping to fortify your circle against similar scams.
