It may be the meanest scam going these days, and it's brought in millions for the scammers.
If you're looking for romance online, the ACCC's National Anti-Scam Centre has a warning – be very concerned if your new friend starts talking about investments, especially cryptocurrency investments.
Scamwatch received 484 reports of romance baiting scams in 2023, and the people caught up in them lost a collective $40 million.
"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," says ACCC Deputy Chair Catriona Lowe.
"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."
People over 55 lost the most money to romance scams last year, usually after connecting with a scammer on an online dating site or through social media.
These scammers will spend weeks, even months, messaging their victim, making them feel like they've formed a genuine connection
ACCC deputy chair Catriona Lowe
How scammers lead victims along
There's a pattern to the way these scams unfold.
After making contact on a dating site or through social media, the scammer will aim to move the conversation to platforms such as Google Hangouts, WeChat, Line or WhatsApp. The platforms are free and encrypted, which allows the scammer to work the con in a controlled environment.
A couple of weeks of grooming will pass, during which the scammer may contact the victim several times a day and express their growing affection – sometimes called "love bombing".
After the back and forth is flowing, the scammer will start to talk about making extra money through different types of investments, especially cryptocurrency.
Luring you in with a few small wins
As with many investment scams, romance scammers tend to bring their victims over the line bit by bit.
They'll convince their target to transfer over a small amount of money at first, and the investment will appear to show a profit.
Eventually the scammer will insist that the victim's account must be regularly topped up for the investment to keep making a return, or that a certain balance must be maintained to prevent the account from being frozen.
We are urging people to not take financial or investment advice from someone you have only met online
ACCC deputy chair Catriona Lowe
The end of a romance scam comes when the victim refuses to invest more money, at which point the money invested so far – along with the would-be romantic interest – disappear in a flash.
"We are urging people to not take financial or investment advice from someone you 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," Lowe says.
The ACCC's National Anti-Scams Centre has outlined the advice it would like all of us to take to heart:
STOP – Don't give personal information or act on investment advice from someone you have only met online.
THINK – Ask yourself if you really know who you are communicating with. Scammers can use different profile pictures and lie about who they really are, especially online. Do an internet search of the person's name or photo to see if it's a scam.
PROTECT – Act quickly if something feels wrong. Contact your bank immediately if you have invested money. Help others by reporting scams to Scamwatch.
Stock images: Getty, unless otherwise stated.
