Romance Scams
Criminals LOVE it: Romance Scams
Romance scams (also known as pig butchering) are rampant, especially in an era dominated by dating apps and online connections. The more technical name for this type of scam is the “virtual currency investment scam,” but is referred to as a romance scam because the scammer takes the time to build a relationship and get the victims full trust and partnership only to steal most, if not all, of the victim’s assets, relying on the victims desire for meaningful and romantic connections.
Sorry! Wrong Number, But While You’re Here
Romance scams often start out with the scammer making contact through text messages, social media, and other similar platforms. They tend to state they got the wrong number, are trying to reach an old friend, or are looking for a romantic relationship. Once they get a response, they begin to take the time to build trust and establish a solid relationship with the victim. From there, they use a variety of methods to gain access to the victim’s funds or directs the victim to invest their funds in sham currencies and websites. Once that happens, it’s too late for the victim and the scammer leaves with the now stolen money causing financial harm and emotional turmoil from the feeling of betrayal.
Red Flags to Look For
Whether you’re a financial professional or just worried about your friend, there’s a few red flags to look for when someone ends up involved in a romance scam. For a more complete list, visit the Financial Crimes Enforcement Network’s (FinCEN) website.
- Mentioning an investment opportunity with significant gains that they learned about from someone who reached out to them, unsolicited.
- Taking out a new loan or second mortgage to purchase virtual currency.
- Mentioning they are using a service to transact and invest in virtual currency that has a website with poor grammar, spelling, and design.
- Refusing to meet up in person, especially if the scammer is using the guise of a romantic relationship as a cover.
The Bottom Line
Romance scams have that name for a reason, they rely on someone’s innate desire for love and are devastating, emotionally and economically, to the victims who can lose everything to the hands of scammers. Stay vigilant and don’t respond to texts, direct messages, and other communications from people you don’t know, especially if they want to form a trusting relationship within minutes. With a watchful eye and caution, you can readily avoid falling victim to one of the most intense scams on the rise.
