Fake love is in the air: NAB warns against Valentine’s Day scams
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As Valentine's Day approaches, a day of love and affection, Australians are urged to stay vigilant against a less romantic side of the holiday—romance scams.
Last year, an estimated $33 million was lost to these heartbreaking scams, and one of Australia's major banks, the National Australia Bank (NAB), is stepping up to educate its customers about the potential risks.
Romance scams are a cruel form of fraud that prey on the vulnerable, exploiting their desire for connection.
These scams are not only financially devastating but can also cause significant emotional distress.
Laura Hartley, NAB's Security Awareness Manager, said the bank wanted to reach out and educate customers about the common scams to avoid becoming victims.
‘With the increase in romance scams last year, we’re working hard to better educate our customers, colleagues and community to recognise the red flags,’ she said.
‘These scams can have a devastating impact—both financial and emotional—and we see people of all ages, genders and demographics targeted.’
According to Hartley, scammers have developed three main tactics to ensnare their victims.
Traditional Approach
The traditional approach involves gaining the victim's trust and pressuring or persuading them to send money.
Romance Baiting
Another method, romance baiting, involves initiating a friendship via text or messaging apps and encouraging the victim to ‘invest’ in cryptocurrency, shares, term deposits, or foreign currency exchanges.
AFP’s Cybercrime Command Acting Assistant Commissioner Chris Goldsmid explained how the scam works.
‘Over the course of months or years, the scammer will flaunt a lavish lifestyle and leave a trail of comments about their wealth, such as bragging about the value in their cryptocurrency wallets,' he said.
Once the victim is sufficiently enamoured and curious about the scammer's wealth, they are directed to a fraudulent investment site.
Goldsmid added: ‘When the victim sends money to invest, victims are provided weekly, monthly or yearly investment statements that show continual growth in their investment. Often, the victim provides even more money to invest.’
Sexual Extortion
A third tactic is sexual extortion, where the scammer either convinces the victim to send compromising or sexual images or claims to possess such images already, then demands payment in exchange for not sharing the photos.
In response to the rise in romance scams, NAB planned to introduce payment alerts to its digital banking platforms in the coming weeks.
These alerts will help customers identify potential red flags associated with romance scams.
Hartley mentioned that while online dating can lead to genuine and lasting relationships, it's crucial to distinguish between a potential partner and a scammer.
‘Someone you haven’t met in person asking for money – often with an emotional reason why – is the biggest red flag,’ she said.
‘Another red flag is someone instructing you to accept a money transfer and then transfer those funds to another account.’
One recent case involved a 65-year-old customer who wanted to transfer over $1 million across three accounts for his 'fiancée', who turned out to be a scammer.
‘The banker recognised the red flags, asked questions about the size and purpose of the transfer, and it stopped the scam in its tracks,’ Hartley said.
‘It turned out the customer had never met his fiancee of several months and didn’t know who he was transferring the money to.’
So, how can you protect yourself from falling victim to a romance scam? Here are some tips:
1. Be wary if the person is reluctant to video chat or consistently makes excuses about why their webcam isn't working.
Scammers often use distorted video quality or stolen images to hide their true identity. Conduct a reverse image search on any images they send you to check if others are using them or have been reported as a scam.
2. If the person asks for money for medical, travel, or business emergencies, do not send any money.
Stop all contact immediately and report the incident to your bank and the platform where you met the person.
3. Be sceptical if the person can't meet in person, often claiming to work overseas for a government, army, or aid organisation.
Look out for inconsistencies in their story, such as poor English in messages despite claiming to be born in an English-speaking country.
4. Never accept money to be transferred to your account with the intention of transferring it to them or another person.
This is known as money muling, and it is illegal. Stop communication and contact your bank right away.
5. Be cautious if the person pushes the conversation to text messages or email early on.
It's safer to keep conversations within dating apps and websites, as these companies can provide more assistance if the conversations occur on their platforms.
If you or someone else has been scammed, immediately report it to Scamwatch here.
You may also visit our Scam Watch forum to stay updated on the latest scams.
Have you or anyone you know encountered a similar situation? Let us know in the comments below!
Last year, an estimated $33 million was lost to these heartbreaking scams, and one of Australia's major banks, the National Australia Bank (NAB), is stepping up to educate its customers about the potential risks.
Romance scams are a cruel form of fraud that prey on the vulnerable, exploiting their desire for connection.
These scams are not only financially devastating but can also cause significant emotional distress.
Stay vigilant this upcoming Valentine’s Day. Credit: Unsplash
Laura Hartley, NAB's Security Awareness Manager, said the bank wanted to reach out and educate customers about the common scams to avoid becoming victims.
‘With the increase in romance scams last year, we’re working hard to better educate our customers, colleagues and community to recognise the red flags,’ she said.
‘These scams can have a devastating impact—both financial and emotional—and we see people of all ages, genders and demographics targeted.’
According to Hartley, scammers have developed three main tactics to ensnare their victims.
Traditional Approach
The traditional approach involves gaining the victim's trust and pressuring or persuading them to send money.
Romance Baiting
Another method, romance baiting, involves initiating a friendship via text or messaging apps and encouraging the victim to ‘invest’ in cryptocurrency, shares, term deposits, or foreign currency exchanges.
AFP’s Cybercrime Command Acting Assistant Commissioner Chris Goldsmid explained how the scam works.
‘Over the course of months or years, the scammer will flaunt a lavish lifestyle and leave a trail of comments about their wealth, such as bragging about the value in their cryptocurrency wallets,' he said.
Once the victim is sufficiently enamoured and curious about the scammer's wealth, they are directed to a fraudulent investment site.
Goldsmid added: ‘When the victim sends money to invest, victims are provided weekly, monthly or yearly investment statements that show continual growth in their investment. Often, the victim provides even more money to invest.’
Sexual Extortion
A third tactic is sexual extortion, where the scammer either convinces the victim to send compromising or sexual images or claims to possess such images already, then demands payment in exchange for not sharing the photos.
In response to the rise in romance scams, NAB planned to introduce payment alerts to its digital banking platforms in the coming weeks.
These alerts will help customers identify potential red flags associated with romance scams.
Hartley mentioned that while online dating can lead to genuine and lasting relationships, it's crucial to distinguish between a potential partner and a scammer.
‘Someone you haven’t met in person asking for money – often with an emotional reason why – is the biggest red flag,’ she said.
‘Another red flag is someone instructing you to accept a money transfer and then transfer those funds to another account.’
One recent case involved a 65-year-old customer who wanted to transfer over $1 million across three accounts for his 'fiancée', who turned out to be a scammer.
‘The banker recognised the red flags, asked questions about the size and purpose of the transfer, and it stopped the scam in its tracks,’ Hartley said.
‘It turned out the customer had never met his fiancee of several months and didn’t know who he was transferring the money to.’
So, how can you protect yourself from falling victim to a romance scam? Here are some tips:
1. Be wary if the person is reluctant to video chat or consistently makes excuses about why their webcam isn't working.
Scammers often use distorted video quality or stolen images to hide their true identity. Conduct a reverse image search on any images they send you to check if others are using them or have been reported as a scam.
2. If the person asks for money for medical, travel, or business emergencies, do not send any money.
Stop all contact immediately and report the incident to your bank and the platform where you met the person.
3. Be sceptical if the person can't meet in person, often claiming to work overseas for a government, army, or aid organisation.
Look out for inconsistencies in their story, such as poor English in messages despite claiming to be born in an English-speaking country.
4. Never accept money to be transferred to your account with the intention of transferring it to them or another person.
This is known as money muling, and it is illegal. Stop communication and contact your bank right away.
5. Be cautious if the person pushes the conversation to text messages or email early on.
It's safer to keep conversations within dating apps and websites, as these companies can provide more assistance if the conversations occur on their platforms.
If you or someone else has been scammed, immediately report it to Scamwatch here.
You may also visit our Scam Watch forum to stay updated on the latest scams.
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