Territorians could be fleeced through online ‘sextortion’, with nude photos being used against them, and forcing them into money laundering, the NT Police Cybercrime Unit has warned.

Cybercrime Unit Senior Constable Joel Smith said since COVID-19 began there has been one Territorian per week on average reporting being a victim of a so-called romance scam. But police have not released detailed figures on these scams.

“Some victims of this scam have lost large amounts of money while some have become further victims of ‘sextortion’ from intimate photographs shared and others have become unwilling participants in the dealing of proceeds of crime,” he said.

Constable Smith warned scammers typically create fake online profiles designed to lure targeted victims then take advantage of a person’s trust and loneliness to progress the relationship at an accelerated rate.

“Scammers try to make their target fall in love with the persona they have created and quickly profess their love for the victim,” Constable Smith said.

“As a result of the relationships, some victims have been asked to provide the offenders with their bank account details or even give them access to their online banking,” he said.

“From here the offenders come up with an elaborate hoax as to why they are putting money into their account.

“They will then ask the victim to transfer the money to them usually using an international money transfer service; as a result of this the victim becomes an unwilling participants in dealing with proceeds of crime as the money placed into their account is obtained fraudulently.”

He urged people not to share nude photos or banking details with people they had not met.

Territorians who think they may have provided their banking details to a scammer should contact their bank or financial institution as soon as possible.

ACCC warns against online dating and romance

The Australian Competition and Consumer Commission has warned that these online romance scam can put you in scenarios where it is likely to be forms of money laundering which is a criminal offence.

The ACCC has reiterated never agree to transfer money for someone else.

“Cease contact with an online admirer if they ask you for financial help, no matter how genuine they sound,” ACCC said.

The ACCC has listed some sample scenarios of the scamming that can lead you to money laundering charges.

“Often the scammer will pretend to need the money for some sort of personal emergency. For example, they may claim to have a severely ill family member who requires immediate medical attention or they may also claim they want to travel to visit you but cannot afford it unless you are able to lend them money to cover flights or other travel expenses.”

“Sometimes the scammer will send you valuable items such as laptop computers and mobile phones and ask you to resend them somewhere. They will invent some reason why they need you to send the goods, but this is just a way for them to cover up their criminal activity.”

“Alternatively, they may ask you to buy the goods yourself and send them somewhere. You might even be asked to accept money into your bank account and then transfer it to someone else.

Romance scams: Fifth of losses across all scams – Scamwatch

According to Scamwatch, Australians reported almost 4,000 dating and romance scams in 2019, with losses of more than $28.6 million, and these numbers will be just the tip of the iceberg.

Around 37.5 per cent of reports resulted in a loss, with an average loss of more than $19,000.

“We’ve seen an increase in reports from people who did not originally seek an online relationship but have been caught up in a dating and romance scam,” ACCC Deputy Chair Delia Rickard said.

“Romance scams are particularly devastating because not only are there financial losses, but there is also an emotional toll for the victim, which can have lasting psychological impacts on people.

“Don’t give out personal information, including your financial details, to anybody you haven’t met in person, no matter who they say they are, and don’t share intimate photos or use webcams in an intimate setting.”

“Don’t agree to carry packages internationally or agree to transfer money for someone else as you may be inadvertently committing a crime.”

According to Scamwatch’s facts and figures, 31.4 per cent of dating and romance scams occurred via social media and online forums. The highest losses (over 33 per cent or $9.1 million) occurred via social media.

Instagram was the most common social media website totalling 8.8 per cent of dating and romance scam reports. Facebook was the social media website that incurred the highest losses totalling 7.3 per cent of all losses. People aged 45–64 were most affected with 1,470 reports and over $18 million in losses.

Women reported 54.9 per cent (2,165 reports) of all dating and romance scam reports, with the remainder 43.3 per cent (1707 reports) made by men, and 1.8 per cent (74 reports) did not specify gender. Women reported the highest total losses of $21.5 million (75.3 per cent of all losses). Men reported $7 million or 24.6 per cent of the total losses.

The majority of losses occurred via bank transfer, totalling 33.8 per cent or almost $9.7 million. This was followed by ‘other payment’ method such as iTunes, Steam and Google Play gift cards, which totalled $8.8 million or 30.8 per cent of all losses.