Andrew* lost $13,000 in a matter of seconds through an investment scheme that cost Australians a total of $293 million last year. South Australia Police shared Andrew’s story for Scams Awareness Week to stop others falling victim. They said he began speaking to someone calling themselves “Zoe” on Tinder who, after weeks of conversations, earned his trust and told him she’d been investing in crypto and was doing well.
Know the news with the 7NEWS app: Download today Zoe told Andrew he could also make an easy sum, and they should continue talking on another messaging app. She helped him set up an account and provided advice on how to make an investment using an online trading platform. Andrew initially transferred a small amount into the platform and received a small amount of money back.
He then took out a bank loan and invested $13,000. “When Andrew attempted to withdraw the funds, he was unable to do so and all contact from Zoe has now ceased,” police said. The Australian Competition and Consumer Commission said investment scams caused the most harm to Australians of all reported scams.
In 2023, $293 million was lost to investment scams nationally, while South Australians lost $10.2 million. South Australia Police said victims lost a median amount of $30,000 per scam.
They said people older than 65 were typically targeted. “It is likely actual losses are significantly higher because many people don’t report when they’ve been scammed,” SAPOL Cybercrime’s Senior Constable First Class Casey Morrison said. “Investment scams involve promises of big payouts, quick money, or guaranteed returns.
“In addition to the traditional way of transferring funds through bank transfer, cryptocurrency is becoming more popular because of the perceived anonymity it offers. “Crypto scams often aim to gain private information such as security codes or trick an unsuspecting person into sending cryptocurrency to a compromised digital wallet.” Police said there were numerous red flags to look out for to identify investment scams.
These include: *last names withheld.
