Law enforcement agencies are on the hunt for a man accused of stealing millions from property market investors as police warn Australians to be on guard against “pig butchering” scams before Valentine’s Day.
A Victorian man is alleged to have fleeced wannabe property market investors of $8.7m by claiming to be a developer who offers to help people demolish their homes and build townhouses in their place.
When they hand over the money, their developments are then bought out by other investors without any work taking place and the man flees. The sums stolen range from $20,000 to $2.1m.
Fifteen victims, mostly from Melbourne’s eastern suburbs, have come forward since the allegations were first reported in 2011.
Detectives believe the man is now targeting single women in Malvern East by trying to convince them to invest in his construction projects.
The allegations come as police urge Australians to be vigilant in the lead-up to Valentine’s Day, with some scammers seeking to exploit those who find themselves lonely or isolated.
The Australian federal police are specifically warning about a highly manipulative scam known as “pig butchering”. The scam requires a significant investment of time to gain the trust of a victim before encouraging them to invest in the share market, cryptocurrency or foreign currency exchanges.
The victims are led to believe they are trading on legitimate platforms but the money is actually siphoned into an account owned by offenders who create fake platforms that look identical to an established site.
The AFP said Australians had lost up to $4,500 every hour to romance scammers in 2022 and up to $3,800 in 2023.
The acting assistant commissioner cybercrime command, Chris Goldsmid, said the AFP had seized how-to manuals for those seeking to operate the scam and are making them available to the public to inform the community about how the schemes work.
Goldsmid said multicultural communities and women were particularly vulnerable to the scheme, which “does not target individuals with the false hope of a relationship” but cold-contacts someone, initiating “a conversation looking for friendship”.
“Scammers usually say the accidental messages are because of ‘fate’ or ‘divine will’,” he said.
“Over the course of months or years, the scammer will flaunt a lavish lifestyle and leave a trail of comments about their wealth, such as bragging about the value in their cryptocurrency wallets.
“Once victims ask how they are making their money, victims are directed to a complete replica of an investment site that shows the growth of an investment.
Goldsmid said when the victim finally tried to cash out, or had no more money left to give, the scammer would make one last effort by claiming that taxes need to be paid before the money can be released, or suggesting the victim travel to a “luxurious resort” for a meeting that can be arranged if they forward additional money.
Because these scams manipulate the victim’s trust, often those who have been caught out are too embarrassed to come forward.
“My message is don’t be embarrassed,” Goldsmid said. ‘“Alert your authorities, and think about telling your friends, family or community what happened. The more others know about these unscrupulous scammers the harder it will be for them to target others.”
