Bank customer narrowly avoids $12k scam heartbreak

Valentine’s Day is a time for love and affection, but it’s also a prime opportunity for scammers to prey on the hearts and wallets of unsuspecting individuals. 

As we near the day of romance again, it’s crucial to stay vigilant and protect yourself from the emotional and financial pitfalls that can come with online relationships.

Recently, a crisis was averted at HSBC’s Parramatta branch, where branch manager Jason Wang and his team saved a customer from losing a staggering $12,000 to a romance scam. 

The customer, who believed he was helping his ‘wife’ stuck overseas, was about to make a costly mistake. 

Scammers can and will use anything to get your money, including your heart. Image Credit: Shutterstock

‘The customer visited us to advise he would be making a $12,000 transfer later in the week,’ Mr Wang said. 

The ‘wife’ was allegedly stuck overseas and needed a ‘green card’ to return to Australia.

Furthermore, he was asked to transfer the money and deposit it under ‘family’ on the online HSBC transfer request.

‘Immediately suspicious, the team escalated the matter to me… there were several factors indicating it was a scam,’ Mr Wang said.

‘We were concerned as a “green card” is not an Australian term, and the amount of money was significant.’ 

‘When we asked the customer about his connection to the person, he was honest and told us he had never met her in person and was told what to say to branch staff—scammers often coach their victims in this way in an attempt to not raise suspicions.’

In a statement, HSBC confirmed that the customer didn’t lose money to the fictitious ‘wife’.

‘The scam was averted before they lost a significant amount of money,’ they said. 

‘The scam was an example of a “romance scam”. These scams work by exploiting your emotions. Fraudsters set up fake profiles on dating websites, apps and social media. They try to appeal to your compassionate side and then ask for money.’

According to the ACCC’s Scamwatch, romance scams ranked as the second most common scam in 2024, with over $23 million reported in losses. These figures are a sobering reminder of the importance of being cautious when engaging with potential partners online.

Not all scam cases like this one are caught in time as well. 

In January 2023, Donna Nelson, a 58-year-old Perth woman, was convicted of drug smuggling in Japan after a scammer had her transport about 2 kilos of methamphetamine to the conservative country under the pretence of romance.

Another case involving romance and financial deception was that of a French woman with the pseudonym Anne who lost her life’s savings after believing she was in contact with American actor Brad Pitt. She lost €775,000, or about $1.2m AUD, in the process.

In addition, recent technological developments, such as artificial intelligence (AI), have given criminals an edge when it comes to zeroing in on unsuspecting victims.

On the other end, for scam victims, retrieval of lost funds is also a pressing matter. 

The Australian Financial Complaints Authority (AFCA) only orders banks to fully compensate their victims in a handful of cases they receive, with over half of scam cases they investigate ending up in no money returned.

In light of the incident, HSBC shared some essential tips to keep in mind:

1. Slow down emotional investment: If someone you’ve met online is declaring their love or pushing for a serious relationship too quickly, it’s a red flag. Real connections take time to develop.

2. Face-to-face matters: Be wary if your online interest constantly avoids meetings or video calls. Scammers often make excuses for not being able to meet in person.

3. Never Send Money: No matter how compelling the story, never send money to someone you’ve only met online. Scammers are adept at creating fake emergencies to tug at your heartstrings and wallet.

4. Honesty with your bank: If you’re being coached to lie to your bank about a payment, it’s a sure sign of a scam. Banks have measures in place to protect you, but they can only do so if they have the correct information.

5. Consistency is key: Look for inconsistencies in your online partner’s story. Scammers often juggle multiple personas and may slip up with their details.

6. Video chat verification: A refusal to participate in video chats is suspicious. Genuine individuals will want to see you just as much as you want to see them.

7. Resist pressure: A scammer’s go-to move is using high-pressure tactics. Take your time making decisions, especially when they involve your personal information or finances.

8. Profile picture perfection: If the photos seem too professional or too good to be true, they might be. Scammers frequently use stolen images from the internet.

9. Guard your personal info: Be cautious about sharing personal details. Scammers are after more than just your money; they want your personal information too.

Late last year, the Australian Securities and Investments Commission (ASIC) sued HSBC for its alleged failure to protect customers ‘scammed out of millions of dollars’.

Remember, if something feels off, it probably is. Trust your instincts and don’t be afraid to ask questions or seek advice from friends, family, or your bank. The best way to protect your wallet (and your heart this Valentine’s Day) is to stay informed and cautious.

We encourage you to share your experiences and tips for staying safe online. Have you or someone you know encountered a romance scam? How did you deal with it? Your stories could help others avoid the same fate. 

Jarred Santos
Jarred Santos
Jarred has a keen interest in areas such as retirement, health, budget-friendly hacks, and practical advice that enhances everyday life. He's a passionate advocate for simplifying finances and finding smart solutions for modern living.

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