Australians urged to beware AI romance scams' deception

Experts are warning Australians to be vigilant this Valentine's Day as AI-enhanced romance scams continue to target unsuspecting consumers.

According to Tenable, the exposure management company, romance scams persist as the most significant consumer threat, resulting in reported losses of nearly AUD $35 million in Australia in 2023. However, these figures may only represent a fraction of the true scale of the issue, with the Australian Competition and Consumer Commission (ACCC) estimating that only 13% of scams are reported. The reluctance to report often stems from victims' feelings of embarrassment or shame.

Researchers have identified that scammers frequently exploit dating apps and messaging platforms, using generative AI to enhance the authenticity of their communications, thereby making fraudulent messages even more convincing to their targets.

"Many of these scammers operate from overseas and don't speak fluent English," said Satnam Narang, Senior Staff Research Engineer at Tenable. "AI helps them craft sophisticated, emotionally compelling messages that make their scams more believable and harder to detect."

Romance scams have a wide-reaching impact, affecting individuals across all demographics. However, the elderly, former military personnel, and those involved in financial arrangement seeking are considered particularly susceptible. Scammers employ various deceptive methods, including impersonating military members with stolen photos, creating fake "sugar mummy and daddy" schemes, and enticing individuals into paid adult video chat registrations for illicit profit.

The most prevalent and financially damaging iteration currently is 'romance baiting,' previously referred to as pig butchering. This technique involves scammers building long-term fake relationships with their victims, eventually persuading them to invest in fraudulent cryptocurrency or stock platforms.

"People have lost their life savings to romance scams, and it's heartbreaking," Narang stated. "Victims are often blamed for falling for these schemes, but these scams are highly manipulative and exploit vulnerabilities that anyone could have."

Recovering funds lost to these scams poses a significant challenge, especially when cryptocurrency transactions are involved. Compounding the issue, scammers frequently attempt further deception by posing as recovery agents, promising to recover lost funds for a fee.

To protect against these scams, experts advise maintaining a high degree of scepticism. Requests for money from someone not met in person, whether for emergencies, business ventures, or investment opportunities, are considered significant warning signs.

Individuals who suspect they have fallen victim to a scam should promptly report the incident to local law enforcement and cybercrime authorities.