Yahoo Finance Warning: $37 million dark side to Valentine’s Day
Single people need to be on the lookout for Valentine’s Day scams that left Aussies $37 million out of pocket last year, the consumer watchdog has warned.
Online scammers are using a technique called ‘romance baiting’ where they prey on unsuspecting victims on dating sites, according to the Australian Competition and Consumer Commission
They move the conversation to an encrypted chat site, and after a few weeks of developing a relationship, the scammer asks about the victim’s finances and encourages them to take part in an investment opportunity.
Victims are asked to transfer a small amount of money at first, and then told to top up their accounts to “increase profits.
But once they run out of money to transfer – the scammer cuts all communication.
“These scams prey on people seeking connection and can leave victims with significant financial losses and emotional distress,” said ACCC deputy chair Delia Rickard. financial losses from these scams.
Traditional dating and romance scams typically target older Australians, but half of the money lost to these scams actually come from people under 35 years old, she added.
Scammers also use another technique, called ‘love bombing’, where they profess their love for the victim several times a day in a move to manipulate their feelings and make them more likely to participate in the scam.
But the best thing to do is to keep the conversation on the app, since you have certain protections such as reporting the potential scammer.
This also protects other people that the scammer is also talking to.
“Remember that you are in control and if you start to feel pressured by someone, stop communicating with them,” Rickard said.
“You can also do an internet search with the name or photo of your love interest or some of the phrases they have used to help identify if it is a scam.”
You can report a scam at Scamwatch.
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