Romance Scam | New Zealand’s Crypto Scam Guide (2024)

If you've just joined an online dating site in search of your perfect match, you might want to read this first! Like many Kiwis, millions are searching for love online, but instead of finding romance, some end up heartbroken and out of pocket due to online romance scams.

Nic Turnbull
September 16, 2024

Warning! If you suspect you've been scammed or fallen victim to a cryptocurrency fraud, don't wait! Contact Crypto Consulting NZ immediately. Our team is here to help guide you through the next steps.

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What to do if you’ve been Scammed

If you’ve fallen victim to a cryptocurrency scam it’s critical to take immediate action. At Crypto Consulting NZ, we specialize in scam support services tailored to your specific needs. We’ll help you confirm if you’ve been scammed, guide you through documenting your case, and provide expert advice on what to do.

Whether it’s a Romance Scam or Rug Pulls our consultants assist with every step of the process to ensure you’re informed and protected moving forward.

What Is a Romance Scam?

Romance scams work by gaining your trust over time, often leading to the scammer convincing you to send them cryptocurrency. While many cases involve the scammer pretending to build a romantic relationship, these scams can also appear as online friendships, making them even harder to spot.

How Romance Scams work

How to Spot a Romance Scammer

Romance scammers in NZ use emotional manipulation to exploit your need for human connection, often targeting victims through dating sites or social media. They create fake profiles showcasing a life of luxury, and then reach out with affectionate messages, telling you exactly what you want to hear.

These crypto scammers may check in several times a day via chat, voice notes, or phone calls, calling you ‘baby’ to build the illusion of a relationship. To appear genuine, they might even send pictures of their meals or daily activities.

Often, they’ll present themselves as wealthy individuals living overseas, claiming to have made their fortune through cryptocurrency. They appear to live lavish lifestyles, making it seem like money is no issue for them.

Once trust is established, they gradually introduce crypto trading into the conversation, enticing you to invest or send money for supposed expenses.

Red Flags to Watch For

The relationship progresses quickly.
They urge you to move off the dating site to instant messaging early on.
They prefer texting over video calls.
They claim their camera is broken, avoiding face-to-face chats.
They promise to visit but cancel last minute due to emergencies.
They ask for money, assuring you their investments will pay off soon.
They push for specific payment methods like wire transfers or cryptocurrency.
They offer to help you trade crypto persistently.
They request personal details.
They encourage you to commit financial fraud on their behalf.

Be cautious if you encounter any of these signs and avoid sharing personal or financial information.

What Is an Example of a Romance Scam?

In a romance scam scenario, Adam meets a woman named Sarah on a dating app. She presents herself as a successful crypto investor living overseas. Over time, Sarah wins Adam’s trust by showering him with affection, sweet messages, and promises of a future together. Eventually, Sarah convinces Adam to send her $1,000, claiming she needs it to cover an urgent financial situation.

Meanwhile, Sarah also connects with another man, convincing him to invest $2,000 in a fake crypto scheme. Using the money from the second man, Sarah sends a small amount back to Adam to keep him invested emotionally and financially, all while planning to continue the scam with other victims.

Are Romance Scams always scams?

A romance scam is inherently deceptive, built on false promises of love and trust that never materialize. These scams can be hard to spot until it’s too late, often leaving victims emotionally devastated and unable to recover the money they’ve sent to the scammer.

Notable Examples of Romance Scams In NZ

An Auckland man fell victim to a Bitcoin romance scam, losing $570,000 after meeting a woman on Tinder who convinced him to invest in crypto. Believing he was entering a genuine relationship, the man transferred the money to a Hong Kong bank account, only to later realise he had been scammed.

Despite his efforts to recover the funds, local police could not act due to the international nature of the crime, and the Banking Ombudsman refused to get involved due to the amount exceeding their $350,000 NZD threshold.

This case highlights the growing threat of crypto-related romance scams in New Zealand, where scammers prey on vulnerable individuals by building emotional trust before convincing them to invest in cryptocurrency. Netsafe reports that romance scams have cost Kiwis $4.5 million over the last two years, with victims often left devastated both emotionally and financially.

It’s crucial to stay vigilant against red flags in online relationships, especially when cryptocurrency investments are involved. Crypto Consulting NZ offers scam support services to help victims navigate these situations.

https://www.nzherald.co.nz/nz/auckland-man-loses-570k-in-bitcoin-romance

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Disclaimer: All content in this guide is intended for educational purposes only and should not be interpreted as financial advice. As an individual, you are entirely responsible for how you conduct your investments and manage your cryptocurrency interests. It is exclusively your own responsibility to perform due diligence and Cryptocurrency NZ recommends taking extreme care and caution with crypto and are not responsible for the outcomes, management, or oversight of your activities.