February is globally regarded as the month of love. It is a time when relationships are celebrated and a connection with someone feels especially present.
Today, that connection increasingly begins online. Dating platforms, social media and messaging apps have reshaped how people meet and build relationships across the world. In South Africa, the steady growth of the online dating market reflects not only commercial expansion but a broader societal shift in how relationships form.
Alongside this opportunity lies a growing threat, relationship investment scams.
Sometimes referred to as romance scams or “pig butchering” schemes, these scams follow a deliberate pattern. The global Relationship Investment Scams Anti-Fraud Campaign coordinated by the International Organization of Securities Commissions (IOSCO) earlier this month, which the Financial Sector Conduct Authority (FSCA) participated in, explains how criminals build trust through friendship or romantic engagement online before introducing a fabricated investment opportunity.
The strategy is patient and calculated, leading to conversations that unfold over weeks or months. Once emotional trust is established, victims are encouraged to trade cryptocurrency, foreign exchange or gold on fraudulent platforms controlled by criminal networks. These platforms display manipulated returns to create the illusion of profit. In some cases, small withdrawals are allowed to reinforce credibility.
In reality, no legitimate investment exists.
IOSCO has also warned that the accompanying losses are quite staggering as the combined losses globally easily total more than 4 billion annually of which over 2 billion [1]is reported in the US alone in 2023 and 2024. However, actual figures likely higher due to underreporting. Victims often make multiple escalating deposits until they are financially drained. Some are persuaded to borrow funds, access retirement savings or take out loans. The financial impact can be life-altering. The emotional impact can be equally severe.
It is important to state clearly that falling victim to these schemes is not a sign of weakness. These operations rely on psychological manipulation, advanced technology and increasingly artificial intelligence to fabricate convincing identities and trading environments.
Consistent global trends in online investment fraud have also been identified. These include the misuse of social media and encrypted messaging platforms to promote unlicensed schemes, the rise of professional-looking but fake trading platforms, and the marketing of high-return, low-risk opportunities that lack regulatory oversight.
Crypto-assets feature prominently in these scams. Unlike bank deposits, crypto deposits are not insured, and once transferred across borders, recovery is rare. The speed and relative anonymity of certain crypto transactions make them attractive to organised criminal groups operating internationally.
While regulators continue strengthening supervisory tools and cross-border cooperation, IOSCO emphasises that providing a coordinated, global regulatory response to disrupt the scams can reduce the number of potential victims. Prevention through investor awareness and vigilant education remains the most effective line of defence of national regulators to pursue the criminals. If investors and potential investors know and understand the risks involved, and notes how fraudsters exploit the vulnerability of people during this time, they will make good fincial decisions.
From a South African perspective, the FSCA remains committed to promoting the fair treatment of financial customers and strengthening financial literacy. Investor protection does not begin at the point of transaction, it starts much earlier, with informed decision-making and a healthy scepticism in digital spaces. It also requires awareness of risks that emerge long before funds ever reach a regulated institution.
Common red flags include relationships that escalate unusually quickly, pressure to move conversations to private messaging apps, reluctance to meet in person, promises of guaranteed or unusually high returns and requests to use unfamiliar trading platforms.
Practical safeguards matter. Never send money to someone you have only met online. Verify identities independently. Research investment platforms thoroughly and confirm that any firm or adviser is properly licensed with the relevant authority. Enable multi-factor authentication on financial and social media accounts. Consult a registered financial adviser before making investment decisions.
If you suspect you have been targeted, act quickly. Stop communication immediately, contact your bank without delay, gather evidence and report the matter to law enforcement and relevant platforms. Be cautious and keep in mind that victims are often re-targeted through fraudulent recovery offers promising to retrieve lost funds for a fee.
Digital platforms have transformed the way we connect, but they have also opened new, borderless pathways for financial harm. It’s important to remember that healthy relationships are grounded in respect, clear boundaries and transparency, and legitimate investments are no different. They can withstand scrutiny and never rely on secrecy, pressure or emotional urgency.
As we reflect on connection during the month of love, it is worth remembering that financial security is an essential part of personal wellbeing. Protecting your heart should never come at the cost of your financial future.
[1] USA’s Federal Trade Commission and FBI”s Internet Crime Complaint Centre
- Alicia Moses, Manager: Consumer Education (FSCA)
