Campaign targets sophisticated online relationship fraud

The Cyprus Securities and Exchange Commission (CySEC) on Friday announced that it is joining the International Organisation of Securities Commissions in a pre-Valentine’s Day global awareness campaign to combat relationship investment scams.

The regulator said the initiative is intended to highlight the growing sophistication of such schemes and the severe consequences they can have for investors’ financial security.

These schemes, which are also referred to as romance scams, crypto investment scams, financial grooming scams or “pig butchering” scams, are described as a calculated “long con.”

Fraudsters commonly make first contact through wrong-number text messages, dating applications or social media platforms.

They then gradually cultivate trust by presenting themselves as friends, romantic partners or financial mentors offering support in achieving investment goals.

After establishing a relationship, scammers introduce what they claim are lucrative investment opportunities and direct victims to convincing but fraudulent websites or mobile applications designed to mimic legitimate platforms.

Once substantial amounts of money have been transferred, in many cases representing victims’ life savings, the fraudsters vanish and the funds cannot be recovered.

IOSCO estimates that these scams have led to losses of tens of billions of dollars worldwide, ranking them among the fastest-growing forms of financial fraud globally.

As part of its commitment to investor protection and financial education, CySEC said it is using the campaign to strengthen public awareness and resilience.

The authority stated that it aims to draw attention to the warning signs associated with relationship investment scams, urge caution when individuals are approached with unsolicited investment proposals, and equip the public with the tools needed to safeguard themselves and their loved ones.

With Valentine’s Day approaching, CySEC called on the public to stay alert, familiarise themselves with common red flags linked to online relationship fraud, and share relevant information to help prevent further victims.

“Protect your heart, and your money,” the commission said.

Further information about romance and relationship scams is available here.