by Jade Saavedra, Correspondent
Over a month ago, a joint operation by the Australian Federal Police (AFP), the Presidential Anti-Organized Crime Commission (PAOCC), and the National Bureau of Investigation (NBI) led to a dramatic raid on a scam center in Pasay City, Philippines.
This action was part of a wider effort to dismantle a sophisticated cryptocurrency romance scam scheme targeting Australian citizens.
The scam, which had been operating since August of last year, affected over 5,000 Australian men, aged between 35 and 80. After uncovering the scheme, the AFP worked closely with Philippine authorities to execute a search warrant and apprehend the perpetrators.
Crypto-romance scam targeting vulnerable Australians
The raid, dubbed “Operation Firestorm,” aimed to disrupt Manila-based organized crime syndicates exploiting vulnerable Australians through fraudulent crypto-romance scams.
In the course of the operation, more than 190 foreign nationals and 68 Filipinos were arrested on alleged immigration violations. Authorities also seized over 300 computers, 1,000 mobile phones, and countless SIM cards, further highlighting the scale of the operation.
Crypto-romance scams are an increasingly prevalent form of cybercrime, typically involving a gradual and manipulative process of emotional manipulation between the victim and the scammer. Once a victim’s trust is gained, the perpetrator introduces cryptocurrency as an investment opportunity, often claiming they’ve struck it rich through online crypto trading.
Victims are then encouraged to invest, but ultimately, the scammer pockets their money.
AFP Assistant Commissioner David McLean emphasized the global nature of this crime: “A large portion of cybercrime affecting Australians originates offshore. This action shows how the AFP, along with our international partners, is proactively targeting these syndicates where they operate.”
Script includes building fake romantic relationships
The raid exposed a detailed script used by scammers to build fake romantic relationships with their targets, who were primarily contacted via online dating platforms and social media.
The script included a fabricated backstory, manipulative language designed to evoke emotion, and a daily timeline to ensure ongoing communication for up to a week. This systematic approach allowed scammers to build trust, creating a sense of connection before presenting the cryptocurrency “investment” opportunity.
Kathleen Dehlers of the AFP revealed that almost AUD 24 million was lost to the scammers, with some victims losing their entire life savings. “This was a very structured seven-day scheme designed to win people’s trust and confidence,” said Dehlers. “International partnership is crucial in addressing this problem. This isn’t just one country’s issue — it’s a global problem.”
To combat these mounting threats, the Philippine government has taken significant steps to strengthen its cybersecurity framework.
The Department of Information and Communications Technology (DICT) has recently launched the National Cybersecurity Plan 2023-2028 (NCSP), a comprehensive strategy aimed at improving the country’s cybersecurity infrastructure.
Scammers using a fabricated backstory
The fabricated backstory used by the scammers often involved a Filipino woman, either based in the Philippines or Australia, who claimed to have been heartbroken by an ex-fiancé who only wanted her money.
In this narrative, the scammer would offer to teach the victim how to invest in cryptocurrency, typically between AUD 300 to 800. Victims would then be encouraged to transfer their funds from legitimate cryptocurrency exchange platforms into the scammer’s account, believing they were participating in a lucrative investment with a trusted partner.
In reality, however, their money was siphoned directly into the scammer’s pockets, leaving victims financially devastated. The evolution of these scams is part of a larger trend of illicit operations shifting from online gambling to fraud centers.
Last year, the Philippine government banned Chinese-run online gaming operations, which had been linked to a variety of criminal activities, including money laundering, human trafficking, kidnappings, and even murder. While these operations have declined, many have shifted focus to running scam centers, often with a focus on romance fraud, according to the PAOCC.
As online scams become increasingly sophisticated, it’s more important than ever for individuals to remain cautious when engaging in online relationships or financial transactions.
Cybercriminals exploit emotions and trust, so it’s essential to verify identities, be wary of unsolicited investment opportunities, and avoid sharing personal or financial information with unverified contacts. By staying vigilant online and recognizing common red flags, individuals can protect themselves from financial ruin and help combat the growing threat of digital fraud.