CBA and ABA: Beware romance scams on V-Day

The Commonwealth Bank (CBA) and the Australian Banking Association (ABA) have both issued warnings about the increased risk of romance scams this Valentine's Day.

With scammers particularly active during the season of love, both organisations are urging Australians to exercise caution in their online interactions.

Aussies losing millions to heartless scams

According to CBA, romance scams are among the top three types of digital fraud affecting their customers, with significant financial losses reported annually.

Scamwatch data showed that in 2022, Australians reported losses exceeding $40 million to romance scams. Men were defrauded of $13.5m, whereas women suffered losses amounting to twice that figure, totalling $27m. Figures from the National Anti-Scam Centre, meanwhile, revealed that Australians were swindled out of more than $30m through dating and romance scams in 2023.

Heartbreak hack: Identifying romance scams

James Roberts (pictured above left), general manager of fraud and scams strategy and governance at CBA, said that scammers, being highly opportunistic, prey on individuals searching for romantic connections, especially around Valentine’s Day.

Typically targeting those in search of companionship, scammers build trust before spinning complex tales that necessitate financial “assistance” or propose investment schemes, ultimately siphoning off their victims' savings. Frequently, these fraudsters fabricate reasons to avoid face-to-face conversations, masking their true identities with counterfeit profiles.

Roberts noted that romance scams frequently begin with a friend request on Facebook, a message from an unfamiliar number on WhatsApp, or a communication on a dating app.

“Scammers usually create fake online and social media identities designed to lure you in,” he said in a media release. “Once they’ve gained your trust, often investing several months of frequent online conversations, they use your newfound relationship to request that you send them money or gifts.”

ABA CEO Anna Bligh (pictured above right) added that these “digital Romeos and Juliets” are supported by highly sophisticated teams dedicated to creating alluring online profiles and lavishing potential victims with compliments and eternal promises.

Listen to a customer's call to CommBank's fraud team.

Here are some romance scam red flags:

• Scammers often say they have strong feelings quickly, using "love bombing" to trick people
• They gain your trust and then ask for money, gifts, or personal info with urgent stories
• If you don't send money, they'll keep asking more aggressively
• Even if you do send money, they'll ask for more, trying to take all you have
• They make excuses for not meeting in person and always need more money
• Watch out for profiles that seem too perfect or lack detail
• Be cautious if someone says they love you soon after meeting
• They might avoid video calls or meeting up
• Scammers ask for money urgently, with stories of big returns or deadlines
• They prefer payment methods that can't be traced, like gift cards or cryptocurrency

“In the digital age, romance scams have become increasingly sophisticated, and individuals must be proactive in safeguarding themselves from potential threats,” Bligh said.  

“Trust your instincts. If something feels off or too good to be true, it probably is. Never share financial information or send money to someone you haven't met in person and report suspicious activity if you think you have been targeted. Stay safe this Valentine’s Day.”  

For comprehensive information and resources on scam and fraud protection, visit the Commonwealth Bank and the Australian Banking Association websites.

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