consumerbrief
800-242-5846
New Jersey Division of Consumer Affairs
www.NJConsumerAffairs.gov
Romance
S
cams
Is Your New Romance an Investment Scam?
New Romances can be Exciting. But, if that
person starts asking for money,
BEWARE!
WHAT IS A ROMANCE SCAM?
Romance scammers lure victims into false or misleading
relationships, often with the intention of stealing money
or committing other types of fraud. In a romance scam, a
swindler pretends to have a romantic interest in a target.
After a relationship is established, the scammer attempts
to obtain money or sensitive information from the target
under false pretenses.
Romance scams account for the highest amounts of
financial losses when compared to other internet-facilitated
crimes. Moreover, an increasing number of Americans
are becoming victims of romance scams originating from
outside the U.S.
Romance fraudsters lure people with phony online profiles,
typically creating attractive and impressive personas. Using
made-up names or falsely assuming identities of real
people, these fraudsters use many types of social media
platforms including, but not exclusively, dating apps, to
make a personal connection.
Romance scams may involve fraudsters asking that money
be sent to help with a tragedy. They may, however, also
be more subtle. To attract the attention of their victims,
scammers may claim to make huge profits from investing
on trading platforms, often by trading cryptocurrencies,
foreign currencies, binary options, or other investment
products. The fraudster will then typically encourage the
victim to do the same.
HOW DOES THE SCAM USUALLY WORK?
The fraudster begins with an attractive online profile,
typically false and usually including photos of other
people or stock photos. The scammer may begin actively
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searching for a victim or may sit back and wait for a
victim to “match” one of several false profiles they have
created. They then let the victim begin the conversation.
Scams have started with dating apps, Facebook, LinkedIn,
Instagram, and other internet social networking forums.
Once contact is made, the scammer begins to build trust,
relying on finding “common” interests, beliefs or activities.
As with most cons, the scammer is relying on the victim to
provide the right “hook” of commonality to begin building
trust. As rapidly as possible, the scammer then displays an
affectionate interest in the victim and attempts to initiate
a similar response from the victim. At or near this stage,
the scammer tries to take the relationship away from
the social media site and guides the victim into a direct
communication channel, typically a messaging platform.
Eventually and inevitably, the conversation will turn to
finances. The scammer may reveal an incredibly profitable
investment opportunity, one that they can only share with
a limited group of close friends. Or the scammer may
disclose a recent financial setback, illness or family tragedy
that requires urgent assistance. Or it can be as simple as
needing money for a plane ticket to come and meet the
‘beloved’ victim in person.
WHAT ARE SOME OF THE RED FLAGS OF A SCAM?
Typically, the scammer will quickly profess a deep affection
for and connection with, the victim. Despite this purported
bond, the scammer will never be able to meet in-person.
There will be numerous unsuccessful attempts and many
obstacles and excuses to avoid an in-person meeting. The
same is true of video chats. Despite being technologically
proficient in the use of social media and knowledgeable
in international financial money transfer methods, they
will always avoid a video chat, lacking either the time or
800-242-5846
New Jersey Division of Consumer Affairs
www.NJConsumerAffairs.gov
ability to participate. Finally, the conversation inevitably
will turn to money, somehow, in some form. This is when
the scammer will request that the victim provide some
financial benefit to them or send their money to some
other website, individual, or company.
HOW CAN YOU PROTECT YOURSELF?
Do not send money to online strangers. Never transfer
money from your bank account, buy gift cards, or wire
money to an online connection or on the advice of an
online connection. True online romantic connections will
not request that money be sent.
Do not invest based solely on the recommendation of
a new online relationship. Research the information you
are being provided and speak to a registered investment
professional.
Keep the conversation on the dating site or the social
media platform. It can be a red flag when someone
you meet on a social media platform wants to leave the
website in order to chat on a different messaging platform.
Many scammers like to use messaging platforms such as
WhatsApp, Kik or Viber.
Meet in-person in a safe, public space. If the romance
is real, meet in a safe public place. If a person keeps giving
excuses, he or she may be hiding their true motives.
Never share personal or financial information. Never
share sensitive personal and financial information with
purely online relationships.
Talk to your trusted friends or family members
about your love interest. Without the same emotional
connection, trusted friends or family members may more
easily see possible warning signs of fraud. Emotions may
cloud your judgment.
Check the photos of your connections. Google Reverse
Image Search is a free site where you can tell if photos
have appeared elsewhere online. You can see if a photo
was used by someone with a different name or has been
reported to a scam list.
Investigate what your connections tell you about
themselves. Check online to verify information about
what they may tell you. Google the person and see what
information appears online about that person. If no online
profile appears about the person, that should cause you to
ask more questions.
See if the text of their messages appears elsewhere.
Google the text message your new connection has sent
you. You may see that same message on other sites. Clearly
that is an issue.
Invite your new friend to video chat with you. Scammers
do not want to talk “live” while showing their faces. Video
chat will help you determine if the online profile is accurate
and the person is who they say they are.
Beware of members of the military asking for money.
Fraudsters will often try to impersonate U.S. Military
members. Members of the U.S. Military have no need to
ask for money for service-related transportation, medical
care or administrative fees.
Check where the emails came from. Every email has an
IP address which will reveal the IP address of the device
which sent it. There are websites online where you can
check IP addresses.
IF YOU HAVE BEEN SCAMMED, REPORT IT !
Stop communicating with the scammer immediately.
Report this scam to the online dating or social media site
and to your bank. Contact the New Jersey Bureau of
Securities at 1-866-I-INVEST (1-866-446-8378).
You can also contact the Bureau via email at njbos@
dca.njoag.gov or file a complaint through the website
NJSecurities.gov.
153 Halsey Street
P.O. Box 47029
Newark, NJ 07101
1-866-I-INVEST
(1-866-446-8378)
NJSecurities.gov
