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Guneet Kaur
Feb 16, 2022
by Guneet Kaur

Valentine’s Day is Gone, But Romance Scam Carries On

FBI
Between January 1st and July 31st, 2021, people in the United States lost $133,400,000 to romance scams, according to the Federal Bureau of Investigation (FBI). Per-user, the average loss was in the tens of thousands of dollars. Scammers frequently mislead victims into believing they are investing in Bitcoins.

But, what is the romance scam?

A common romantic scam begins by earning the victims' trust, after which they are steered to fake platforms claiming to offer investment opportunities. While the scammers enable investors to withdraw some earnings from the initial deal in order to establish credibility, the victims are pressured to invest additional money or cryptocurrency.

This article will explain the scam that not only break your heart but break your pockets too.

How do romance scam takes place?

The scammer usually initiates contact using social media platforms and dating apps. After gaining the victim's confidence and trust through an online relationship, the scammer claims to know about cryptocurrency investment or trading opportunities that will result in significant rewards. 

The victim is directed to a phony website or application that offers an investment opportunity. The scammers allow the victim to withdraw a small amount of money once the victim has deposited an initial amount on the platform and sees a supposed profit, further increasing the victim's trust.

According to the FBI, once a scammer has a victim, they will continually develop new justifications for the victim to give money.

Following the successful withdrawal, the scammer advises the victim to invest higher sums of money and frequently emphasizes the need to act quickly, according to the Bureau. When the victim is ready to withdraw funds again, the con artists invent why this is impossible.

The victim is told of additional taxes, fees that must be paid, or that the minimum account balance required to make a withdrawal has not been met. This entices the victim to provide more money.

A 'customer service group', which is also a scam component, is occasionally involved. Victims are unable to withdraw any payments, and scammers frequently terminate communication with victims once they stop sending further funds.

Some of the quick red flags

There are various red indicators to look out for when utilizing an online dating site, in addition to exercising extreme caution.

  • The victim and the con artist never meet in person. A con artist may justify why a face-to-face meeting is not possible.

  • A romance scammer is unlikely to agree to a video call, but if they do, they may blur the image or otherwise make it difficult to see. They may also change the audio to be difficult to hear or interrupted somehow, all while whining about inadequate technology.

  • Finally, after convincing their victim that they are trustworthy, a scammer may do something unusual, such as withdraw from the dating site for an extended period without replying to the victim's messages.

    • How you can protect yourself from swindles like Romance scams?

    You can follow the following tips to save yourself from the not-so-romantic act.

    • Never transmit money, trade, or invest money based only on the advice of someone you met online.

    • If an online investing or trading site advertises extraordinary profits, it's probably just that.

    • Don't reveal your current financial situation to strangers or people you don't know.

    • Individuals that claim to have exclusive investment opportunities and urge you to act quickly should be avoided.

    • Don't give out your financial information, such as your Social Security number in the United States, or any other sensitive information like copies of your national ID or passport to anyone online or to a site you don't trust.

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      Valentine’s Day is Gone, But Romance Scam Carries On
      Guneet Kaur
      Guneet Kaur is a certified credit and securities analyst. She is MSc Fintech graduate (with distinction) from the University of Stirling, Scotland, United Kingdom. Prior to MSC, she has also done MBA from GNDU (gold medal) and has worked as a global client and partner business manager with Singapore-based MNC. She has written various conference papers and has authored a book titled 'The Magic Of Compounding'. She was the Finalist of the Women in STEM-Lovelace Colloquium that was held in 2019 at the University of Salford, UK, and Royal Bank of Scotland's Hackathon in 2019. Her expertise includes financial modeling, Cryptocurrencies, DeFi, Blockchain, quantitative analysis, academic research, business valuation, business analysis, data visualization, financial fraud, and AML analysis.

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