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The new Netflix documentary “The Tinder Swindler,”
alleges Simon Leviev scammed an estimated total of $10 million by
posing as a wealthy, jet-setting diamond mogul and wooing women
online through dating apps. Sadly, this is becoming increasingly
common leading the Canadian Securities Administrators’ (CSA) to
issue a warning to the public (on Valentine’s Day) about
fraudsters luring Canadians into relationships that eventually lead
to investment scams.
The CSA reported that the latest data from the Canadian
Anti-Fraud Centre (CAFC) showed that romance scams were the second
highest reported scam in 2021 (the first being investment scams).
Furthermore, the number of reported romance scams increased 24
percent year over year (1,546 in 2020 vs 1,928 in 2021) and the
dollar loss for reported romance scams was more than $64 million in
2021.
The CSA reports that fraudsters utilize a variety of techniques
to defraud Canadians, including, but not limited to:
- Approaching people via dating apps, messaging apps, or other
social media sites. After developing an online relationship, the
fraudster brings up an “investment opportunity” and
convinces the person to make an initial payment. - Identifying a person’s friend and then taking control of
the friend’s social media accounts. The suspect, posing as the
friend, easily convinces the person to take advantage of the
supposed investment opportunity. - Researching their potential victims online, including reviewing
their social media posts, in order to come up with a tailored
strategy for each victim to maximize their chances of success. - Convincing a person to provide remote access to his or her
computer while calling with a pitch for an investment. The suspect
shows the person a fraudulent investing website that promises
substantial returns. - Claiming that they will use a person’s money to buy
investments, such as crypto assets, and then cut off all
communication once receiving the funds.
People should be wary of any proposed investment opportunities
and should always conduct their own research and contact a
registered financial adviser for investment-related advice.
Additionally, the CSA further encourages investors to:
- Be wary of unsolicited investment offers from new acquaintances
or love interests. Check the CSA’s National Registration Search to see if
the investment entity or individual that is offering the investment
opportunity is registered with securities regulators. - Never send money to or invest solely on the advice of someone
you meet through social media or a dating site. - Avoid “guarantees” of high returns with little or no
risk. All investments involve some level of risk. - Resist the pressure to invest immediately and ignore the fear
of missing out. It’s okay to say no and take the time you need
to research any investment opportunity and get independent
third-party advice. - Ask questions. If you can’t understand it nor get
satisfactory answers to your questions, walk away.
If you think you have been approached with or are a victim of a
romance scam consider contacting your local securities regulator:
British Columbia: http://www.bcsc.bc.ca/; Ontario: www.osc.gov.on.ca
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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