Threat Alert: Beware the romantic financial expert
We are seeing a large surge in criminals using dating websites to build relationships with people to convince them to make fake financial investments.
Criminals have used a technique called ‘catfishing’ for a long time to trick victims into giving them money. Catfishing is tricking people into romantic relationships using a fake identity online for financial gain. Typically, the criminal creates an intense relationship very quickly and then creates a fake incident – money to pay medical bills, a plane ticket to come and visit the victim, money to fix a car issue etc. - where they need some money. Because of the emotional connection the victim sends the money.
However, we are seeing a new technique. In the new model the criminals are posing as wealthy individuals - or financial experts – who have made a lot of money through investing – often in cryptocurrency like Bitcoin. They say they know a certain currency exchange that has given them huge returns.
Here is an example description from one of our service users:
"I have been financially scammed out of my Bitcoin. I was contacted by someone on a dating website that was actively encouraging me to use a particular exchange that now turns out to have been completely fake and for the purpose of the scam."
After building the relationship, they convince the victim to invest in some bitcoin – we have seen amounts from £100 to £30,000 - and then get them to transfer it to a fake exchange. This will be a real website. They will be able to create an account and transfer in the bitcoin. It will even have a dashboard showing their investment and how much money they have made.
At the point of transferring the Bitcoin the money is lost. However, we are seeing the criminals have good success in tricking victims into more payments or being tricked into paying ‘taxes’ to allow them to receive their returns. These returns never materialise. Even when the victim realises this is a scam and challenges the individuals the criminals are still messaging and providing ‘customer support’.
For example:
"I met a guy online. Then he offered me to join bitcoin. The platform where to buy the bitcoin seems legit (WEBSITE REMOVED). However, the trading platform seem to be fraud..<WEBSITE REMOVED>. I sent the bitcoin there and traded. When I want to withdraw my bitcoin they asked a lot of bitcoin for me to withdraw my balance from my own account. Until now, I haven’t got back my bitcoin. I have attached the QR code of their customer service. I really hope you can assist me in getting back my bitcoin."
These criminals have invested a lot in the scam. They are either creating - or renting – fake exchange websites with good functionality. There is a chance they have stolen data on Bitcoin owners that they are using to target people. They are spending significant time building the relationships and then communicating with victims after the ‘investment’ impersonating account managers or customer service representatives.
How can you avoid this scam?
Follow these basic rules to ensure you don’t fall victim to these types of scams:
Never transfer any money to someone you have only met online.
Never be rushed into making an investment.
Trust your gut. If it sounds to good to be true, it probably is.
If you suspect someone who have met online is a catfish review the common traits of a catfish on our website here.
Do your research first. Check sites like the FCA’s Scam Smart and make sure it isn’t a known scam. Also check the company out on Companies House to make sure it is a legitimate business.
If you have fallen for this scam?
If you have fallen for this scam you should report it to the police and raise a case with us here. It is unlikely you will be able to recover any funds, but it makes the scam getting closed down more likely and ensures that you have the right protection in place in future.
Remember that these are professional criminals and you should not feel stupid for falling for the scam. These are experts who focus on tricking thousands of individuals.