“My goal was to make money,” said Edkunle Ededji, a former Nigerian romance scammer who goes by the name Chris.
While 23-year-old Addeji did not pose as “”.nigerian prince“They tapped into another long-running internet fraud: the romance scam.
Using photos of someone else he found on Instagram and pretending to be an American employed by the US military, Adedezi lured women on a dating site and convinced them to send them money. “I stole $20,000 from a woman,” he said.
More from Personal Finance:
When it comes to love, so much debt is a deal breaker
How These Couples Overcome Financial Infidelity
Nev Schulman of MTV’s ‘Catfish’ explains how to stay safe
He said that his trick was revealed when he came to know that his pictures were fake. But his guilty conscience also played a part. Adedeji now works with online dating investigation site SocialCatfish.com To educate others on such scams.
Why romance scams are on the rise
Despite increased awareness from TV series such as MTV’s “Catfish: The TV Show” and Netflix’s “The Tinder Swindler”,, Romance Scams Reported According to the Federal Trade Commission, the record high is reached in 2021.
The FTC said the losses totaled $547 million for the year, up about 80% from 2020.
“It really escalated with the pandemic because people were stuck at home and had to go online,” said David McClellan, president of Social Catfish.
Since 2017, victims have reported losses of $1.3 billion—more than any other type of fraud tracked by the FTC.
The report finds that in a common version of a romance scam, people agree to transfer money in favor of their alleged girlfriend, who is suddenly in financial bind. A new twist often involves the sharing of bogus investment advice, particularly involving cryptocurrencies, which are difficult to track.
“Yes, there are red flags, but the most successful scammers are the best at manipulation,” McClellan said. “These guys are groomed.”
How to Detect a Romance Scam
The FTC offers these four tips for detecting romance scams:
- No legal person will ever ask you to help them by sending cryptocurrency, giving a number on a gift card, or giving money. Anyone who does is a scammer.
- Do not send or forward money to anyone you have not met in person, and do not act on their investment advice.
- Talk to friends or family about your new love and take note if they are concerned. Someone who is not emotionally involved may be in a better position to raise red flags.
- Try a reverse-image search of profile pictures. If the details do not match, it is a scam.
“You also want to watch for people whose lives seem mysterious,” said Nev Schulman, host and executive producer of “Catfish: The TV Show.” recently told CNBC,
“As charming and exciting as it can be, if you’re going to talk to someone and potentially date them, you want to know what they do and where they are.”
Use ‘That 10 But’ to Review Relationship Red Flags
According to Shelley-Ann Iveka, a senior director of financial strategy at TIAA, with any potential mate, there are certain dating standards to be followed—as well as financial red flags to watch out for, including the similarly popular “she’s a 10 but” meme potential. The deal breaker calls out the symptoms.
“Money habits can really make or break a relationship,” she said.
In the beginning, look for possible warning signs, she advised, such as living above your means, borrowing money from friends and family, or having burdened with debt,
“It’s important to make sure your partner’s financial habits and values align with yours,” Iveka said. “If they don’t follow through on the budget or take advantage of their employer-provided retirement plan, you can tell that person isn’t making sound financial decisions.”
As you’re considering whether this is someone you’d like to build a relationship with, ask questions such as, “What are your plans for the future? And how do you plan on funding for him or her?”
“How do you find your real 10 if you don’t know?” He added. “You want to have those difficult conversations to save yourself heartache later.”
If you decide to take the next step, Iveka suggests sharing a credit report and meeting with a financial advisor to put together one. a plan for the future,