Fraudsters seek their targets in a number of ways. They often initiate contact through a social media platform – including dating, professional, or messaging websites, and apps. They may also text a potential victim, pretending to be a friend or to have accidentally sent the message to the wrong person. Their goal is to have their targets respond back to this initial contact.
Once a target responds, the criminal slowly works to build trust and uses friendship, romance, or the appearance of a glamorous lifestyle to keep their targets engaged. Scammers often use a fake identity and share made up stories, fake photos, and other lies to build a connection.
When the scammer has established a relationship or friendship with the victim, they then introduce an “investment opportunity" or advice on trading and work to convince their targets that they can provide the tools or strategies needed to make money. They may use fake screenshots of investment trading platforms or fake testimonials to make their targets believe the opportunity is real.
After the target agrees to invest, the fraudster often directs them to download an app or create an account on a website and wire cash, send crypto assets, or write a check to make an initial deposit. Scammers then generate fake reports to convince the victim that they are profiting. They may even allow the victim to make a small withdrawal to assure them it's not a scam.
The next step in the long con is to have the target invest more and more money. If a target ever wishes to cash out their investments, the scammer will make an excuse for why this cannot happen. Often, the scammer will claim the victim needs to pay a fee or tax to receive their money. This is another lie and an effort to get even more money from the target.
Once the scammer believes they've extracted as much money as possible, they abruptly cut off communication and disappear with the victim's money.