Lonely hearts ripped out and ripped off this Valentine’s Day by scams.
7 February 2013
A warning this Valentine’s Day for those who use internet dating: be on the lookout for scammers. A consumer advocate
for accurate credit reporting warns that getting sucked in by a scammer may not only leave you broken hearted, but can
also leave you broke.
CEO of MyCRA Credit Rating Repair, Graham Doessel warns that because of the personal nature of dating scams, many
intimate personal details may be shared, and scammers could not only extract money, but can also garner enough
information to steal your identity and take credit out in your name.
“The costs of identity theft can be significant long term and are magnified by the fact that identity fraud is often not
detected until you attempt to take out credit in your own name and are refused due to credit rating defaults from unpaid
credit you didn’t initiate,” Mr Doessel says.
The NSW Fair Trading Commission has issued fresh warnings recently in regards to romance scams, saying consumers are at
risk of high debt and dissatisfaction.
Commissioner Rod Stowe warns if you are looking for love -get introduction agency agreements in writing and beware of
predators online and elsewhere.
“Repeated requests for more money are standard practice for traditional and online romance scammers, whether the
requests come from an agency or prospective partners,” he said in a recent media release.[i]
“Once you’re on the hook, a scammer will reel you in as long as you take the bait. The internet presents a whole range
of risks for consumers looking for love. The ACCC [Australian Competition and Consumer Commission] reported Australians
lost $21 million to dating and romance scams in 2011. The average loss for a victim reporting a scam to the ACCC was
more than $20,000.”
Romance scams are so rampant in Australia, that the ACCC now requires online dating sites to display scam warnings and
will threaten action against companies that fail to comply.
Scammers target victims by creating fake profiles on legitimate internet dating services.
The ACCC warns once you are in contact with a scammer, they will express strong emotions in a relatively short period of
time and will suggest you move the relationship away from the website, to phone, email and/or instant messaging.
Scammers often claim to be from Australia, but travelling or working o/s.
“They will go to great lengths to gain your interest and trust, such as sharing personal information and even sending
you gifts. Scammers may take months, to build what seems like the romance of a lifetime. They will then ask you for
money, gifts or your banking/credit card details.” the ACCC warns on their website.[ii]
The ACCC says scammers can site various reasons for needing money, including to cover the costs associated with
non-existent accidents and illnesses, various fees and charges associated with precious goods such as diamonds, gold
bullion and gemstones, or to arrange a meeting which never occurs.
Mr Doessel says it is not always easy to forget a romance scam if the fraud has impacted your credit file.
“If you fall victim to identity theft, you are hit three times – you may have lost a large sum of money, secondly you
may be emotionally heartbroken, then thirdly you are locked out of credit for 5 years because of defaults on your credit
file.”
“You may not even get a mobile phone plan if you can’t prove you didn’t initiate the credit in your name,” he says.
The ACCC’s SCAMwatch outlines some ways people can protect themselves when dating online:
- ALWAYS consider the possibility that the approach may be a scam…Try to remove the emotion from your decision making no
matter how caring or persistent they seem.
- Talk to an independent friend, relative or fair trading before you send any money. THINK TWICE before sending money to
someone you have only recently met online or haven’t met in person.
- NEVER give credit card or online account details to anyone by email.
- Be very careful about how much personal information you share on social network sites. Scammers can use your
information and pictures to create a fake identity or to target you with a scam.
- If you agree to meet in person, tell family and friends where you are going...
- Where possible, avoid any arrangement with a stranger that asks for up-front payment via money order, wire transfer or
international funds transfer. It is rare to recover money sent this way.
-If you think you have provided your account details to a scammer, contact your bank or financial institution
immediately.
- Money laundering is a criminal offence: do not agree to transfer money for someone else.
If you think you may be ‘dating’ a scammer, contact the ACCC on 1300 795 995 and if you have given over money, contact
Police immediately.
MyCRA Credit Rating Repair’s website also contains information on identity theft and your credit rating
www.mycra.com.au.
ENDS.