Don’t You Just ‘Love’ This?
October 23, 2024
Investors are often turned on to an opportunity by someone they know. The closer the relationship, the greater the credence people give a tip.
Con artists who deal in romance scams know this all too well and are leaning in on the strategy of relationship building to optimize investment fraud schemes.
The U.S. Securities and Exchange Commission (SEC) is hip to this trend and recently issued a warning.
Loneliness epidemic creates fertile ground for romance cons
The SEC’s alert shared a common tactic deployed by romance investment scam artists—impersonation. The fraudster either creates an entirely fake identity from scratch or “spoofs” the identity of a legitimate person. In either case, the identity typically belongs to a financial professional of some sort.
Things move slow, as the scam artists are all about capturing their victims’ trust. The SEC alert puts it best: These scams sometimes are referred to as “long cons,” meaning there’s a long, slow build before the fraudster springs their trap.
Of course, slow doesn’t mean shy. Romance scammers are very quick to drop the “L word,” giving the target an often much-needed sense of belonging and acceptance. According to the Surgeon General, we’ve never been lonelier as a country, making the U.S. chock full of people vulnerable to sweet nothings digitally whispered by a skilled con.
Deepfake tech improves spoofing techniques
If you’re thinking, “I’d never fall for a romance scam,” you may be right. But what about your teen? Or your newly launched adult child? How about an elderly or isolated parent or grandparent?
Loneliness and vulnerability are not the only risk factors at play. Romance investment scam artists are using advanced technology to make their schemes highly convincing. Police recently arrested 27 alleged scammers who were caught using deepfake face-swapping technology to trick victims out of $46 million.
How to stay out of the snares of a romance scammer
Here are three quick and easy tips to avoid romance investment scams:
Talk to your loved ones. Be curious about the people your loved ones are connecting with online. Ask them often who they are chatting with and if they are feeling close with anyone. If they are, help them investigate the new friend’s legitimacy by doing things like conducting a reverse image search of their headshot, comparing social profiles across channels or asking to meet in person (with a friend in tow.)
Scrutinize testimonials. Scammers will often put victims in touch with other people who claim to have awesome stories of investment windfalls. These reviews may have been paid for; they may be entirely made up. The SEC warns people never to rely solely on testimonials when making an investment decision.
Use blocking features. If you’re getting solicited by someone you suspect is fake, block them. They may attempt to reach out again with a different name or identity… and this time, they may have better spoofing technology that ends up convincing you of their “honest” intentions.
Bank Iowa employees actively monitor for fraud trends like this and are undergoing continuous training to spot red flags. You remain the strongest line of defense, however. By working together, we can significantly strengthen our collective ability to catch romance scammers in the act, keeping you and your loved ones out of their traps and safe from financial heartbreak.