Here’s a lesson in trusting too much, too soon. Max Greenhalgh, a 19-year-old from Chorley, was mourning the recent loss of his father when a scammer preyed on his vulnerability. Claiming to be a mentor, this fraudster promised to help Max make his father proud through a “can’t-miss” investment opportunity. What Max thought was a way forward turned into financial devastation, leaving him with an empty bank account and shattered trust.
In January, Max fell victim to a fake crypto trading scam, losing £4,750 he had invested into what he thought was a growing account. The scammer posed as a mentor, enticing Max by building trust and using emotional manipulation during a difficult time.
How It Works
This scam used trust and deception as the main hooks:
- Building Trust: The scammer approached Max online, showing empathy and a willingness to help him honor his father’s memory. This tactic helped establish a bond that made Max feel secure.
- Fake Investment Platform: Max was encouraged to fund a trading account with Bitcoin, which the scammer claimed would be used for high-yield investments. The fraudster created a fake trading account that showed increasing gains, tricking Max into investing more.
- The Final Take: As Max saw his “profits” grow to £15,000, he was encouraged to buy a new car. But to access his funds, the scammer asked for two “tax” payments totaling £1,600. After paying, Max learned the entire account was fake, and the scammer vanished with his money.
Who’s Targeted?
Young, aspiring entrepreneurs or individuals dealing with grief or life changes are especially vulnerable to these scams. Fraudsters exploit their emotions, aiming to gain their trust quickly by offering guidance, mentorship, or friendship.
Real-Life Example
In Max’s words, “I trusted him so much—more than a mentor, he posed as my friend.” After investing his savings and borrowing from a friend, Max was left with zero in his account and the added pain of selling his late father’s cherished BMW to cover expenses.
Martin Richardson, Max’s attorney, described it as a “sick and cruel scam,” explaining that scammers have no remorse for exploiting their victims’ vulnerability. Max’s experience shows the heavy emotional toll these scams can take, especially when they come at someone’s weakest moments.
Why You Should Care
Romance and mentor scams play on the victim’s emotions and trust. Financial loss aside, they lead to significant emotional distress and a lingering fear of trusting others. In Max’s case, he’s now unable to continue his business or cover basic expenses, and the lasting effects on his confidence and peace of mind are profound.
How to Protect Yourself
If you or someone you know is venturing into new investment areas, take these steps to avoid falling into a similar trap:
- Verify Mentors: Research anyone offering investment advice or mentorship. Look for verified credentials and references outside of social media.
- Use Reputable Platforms: Only invest through licensed and reputable platforms, ideally ones you set up yourself, to avoid transferring funds to unknown accounts.
- Stay Cautious with Online Friendships: Be wary of individuals pushing for personal details or financial moves, especially if you’ve only met them online.
- Keep Your Finances Private: Avoid sharing sensitive information like financial goals, inheritance, or recent losses with people you’ve just met.
- Consult Trusted Advisors: Before making financial moves, consult trusted friends or family members who can give an objective perspective.
Quick Tip #1: "Did you know? Scammers often use ‘love-bombing’ tactics in which they shower you with compliments and attention to gain your trust quickly."
Quick Tip #2: "Pro Tip: A legitimate mentor will never push you to make an investment decision quickly. Always take your time to research and verify."
Have you or someone you know encountered a similar scam? Share your story to help others recognize and avoid these emotionally manipulative tactics.
Stay safe, stay informed,
Key Terms Explained
- Crypto Wallet: A digital wallet used to store, send, and receive cryptocurrency, which can sometimes be targeted in scams.
- Love-Bombing: A manipulation tactic where someone uses excessive flattery or attention to establish control quickly.
- Fake Trading Account: A simulated account created by scammers that falsely displays profits to lure victims into investing more.
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