There’s no doubt that the COVID-19 pandemic has taken a toll on our society. Not only has there been a financial cost, but it has also taken a toll on people’s health. There have also been many industries and businesses that have done very well during the pandemic.
Not surprisingly, scam artists have done particularly well, especially those that perpetuate lonely-heart scams. In fact, according to the Federal Trade Commission, last year lonely-heart scams surged by 80 percent and financial losses to Americans were over one billion dollars. Unfortunately, it appears that this year we will set another record.
Typically, scam artists use dating apps to perpetuate their fraud. Although lonely-heart scams can target anyone, it appears that scam artists disproportionately seek out seniors. They identify widows who are seeking companionship through one of these websites. Not only are scam artists good at identifying their targets, they are also very patient in reeling them in. Because so many of these crooks live abroad, it is often difficult to catch and penalize them.
Typically, the goal of these scams is to convince you to send them money. Money can be in the form of a check, refunding a debit card, a gift card, or even crypto currency. The bottom line is that these scam artists are trying to steal from you.
Although scams are all a little different, there are some consistent signs that should raise a red flag. One of these signs is the picture someone uses on their profile. Scam artists typically use pictures of incredibly attractive people. When meeting someone online, it is recommended to do a Google search of the picture to make sure it is legitimate and not a stock photo. Google Image search will allow you to see if the same picture exists on another website. If it does and has a different name or profile, you know you have a problem.
These crooks often profess that they have fallen in love with their victim, despite never having met them in person. In fact, many times these scam artists will set up an in-person meeting but cancel at the last minute. In addition, many of these crooks will try to alienate you from your family and friends, and convince you not to talk about your relationship with them. These signs should raise a red flag.
Ultimately, the purpose of these scams is to get you to send them money. After they profess their love for you, they’ll claim they have some sort of financial or family emergency, and they need you to come to the rescue. Don’t fall for it. You should never send money to anyone you meet online, particularly, someone you have not met personally.
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Due to the pandemic, there are many people who are very lonely and are seeking companionship. These people are prime targets for scammers. Therefore, if you have a loved one who falls into this category, it is important that you work with them to prevent them from being a victim.
We all are potential victims, and thus, need to be cautious. Be smart with what you post online. Never give your sensitive financial information to anyone, particularly to someone you’ve only met online, and always be leery of anyone who asks you for money.
Remember that scam artists are good at what they do, and can be very convincing. If you fall victim to a scam artist, don’t be embarrassed; rather, contact the Federal Trade Commission and the police. You never know, there is an outside chance that they will catch the crooks and you may get some of your money back. However, even if you don’t get your money back, the information you provide can help law enforcement protect others from these scam artists.
Good luck.
Rick Bloom is a fee-only financial advisor. His website is www.bloomadvisors.com. If you would like him to respond to your questions, please email rick@bloomadvisors.com.
