Your money and online romance should never meet

‘And they lived happily ever after’ is a phrase that is often used at the end of a romantic movie or a novel. Humans are social beings and often prefer to have a companion with who to do life. The quest to meet the person of your dreams is no longer limited to meeting someone by chance at the gym, an introduction by a mutual friend, or even on Facebook. Online dating apps, such as Tinder, Bumble and many others have become the new norm and are the reason why many couples are now living happily ever after.

The success of these apps is based on an algorithm that uses the personal information that the user provides to match their profile with like-minded individuals. What the algorithm doesn’t consider, is if the perfect match’s only objective is to swindle non-suspecting romance seekers out of their money. The hugely popular Netflix documentary, The Tinder Swindler is about a so-called high-flying diamond dealer who uses charm and sympathy to persuade his victims to transfer money into his account. Shortly after the movie was released, the US Federal Bureau of Investigations (FBI) reported that online romantic scamming reached a record high in 2021, with people reporting more than $547 million in losses. Individuals lost more than $1.3bn over the prior five years to romance scams and the worst part is that it is very difficult to prosecute these cases as the victims often transfer the money voluntarily.

Online dating scams and Ponzi investment schemes have a common theme: acting and exploiting the personal information provided to them and urging victims to act fast or else the exclusive opportunity will be missed.

Protect yourself and others by following these guidelines:

• Never disclose your finances to anyone you do not trust
• Do not send money, or invest money on the advice of someone you have met online
• If it sounds too good to be true, it probably is

The golden rule is that your money and your online romance should never meet. If you are in doubt, consult with a skilled financial adviser who can provide you with objective advice.