26: Seduced and Swindled

Spies, Lies and Cybercrime by Eric O’Neill

Seduced and Swindled: Romance Fraud in the Digital Age

The Dark Game of Aurora Phelps

The bartender at the quiet casino lounge had seen her before. A beautiful woman, always alone, sipping a martini, watching the room. It wasn’t the usual kind of looking—this wasn’t a woman searching for a date. It was a predator scanning for prey.

Her name was Aurora Phelps, though that was just one of many names she used. To the outside world, she was a 43-year-old Las Vegas socialite, well-dressed, charming, and wealthy. To the men she targeted, she was a dream come true—a woman who listened, who understood, who made them feel young again. And then, she drained them dry.

It started with flirtation, a shared drink, the touch of a hand. By the time her victims realized what was happening, it was too late. Aurora didn’t just scam men—she drugged them. Her favorite method? A little something slipped into a cocktail, just enough to knock them out. When they woke up, they were alone, confused, and missing more than just their dignity. Their bank accounts had been cleaned out, their credit cards maxed, and their identities stolen.

Aurora Phelps

For years, she moved like a ghost through the neon glow of Vegas, always a step ahead of the law. The police received complaints, of course, but con men and women thrive on their victims’ shame. Who wants to admit they got played? Some were too embarrassed to go to the cops. Others never had the chance—at least two men died after being drugged by Aurora, their bodies discovered in their homes, their savings vanished.

And then, there was the man who disappeared.

Investigators later pieced together what happened. Aurora smuggled a wheelchair-bound victim across the U.S.-Mexico border while he was heavily sedated. His body was found in a cheap hotel in Mexico City, his accounts wiped clean. When authorities finally caught up with Aurora, she was hiding out in Mexico, using another false name, charming another wealthy man. This time, though, there was no escape. She was arrested and extradited back to the U.S., charged with wire fraud, identity theft, and murder.

But Aurora Phelps was just one woman. Her story was shocking, but it was not unique. Across the world, romance scams have exploded, costing victims billions and leaving heartbreak—and financial ruin—in their wake.

The Billion-Dollar Scam

Romance fraud is no longer the work of a single con artist in a smoky casino lounge. It is now a global, multi-billion-dollar industry, run like a business by organized cybercrime networks.

In 2022 alone, romance scams cost victims $1.3 billion in the U.S., the highest losses ever recorded. By 2023 the scam had swindled $1.14 billion from loveless victims. The average victim lost $2,000, but for many, the damage was far worse—entire life savings gone in a matter of weeks.

What’s more alarming is how fast the crime is growing. Reported cases have doubled in just two years, and experts say the real numbers are far higher because most victims never report their losses out of embarrassment.

The fraud often starts with innocent conversations on dating apps, social media, or even LinkedIn. A scammer builds trust, often over weeks or months, convincing the victim they’ve found a deep, genuine connection. Then comes the ask.

Sometimes, it’s a sob story—a medical emergency, a stranded trip, a desperate need for short-term cash. Other times, the scammer pitches an investment, often in cryptocurrency, promising huge returns. Once the victim sends money, the scammer vanishes.

Worse still, some victims are manipulated into illegal activity, unknowingly acting as money mules to launder stolen funds. Many don’t realize they’re participating in a crime until the FBI knocks on their door.

And now, thanks to artificial intelligence, these scams are becoming virtually impossible to spot.

The Rise of AI-Driven Love Scams

It used to be that if you were scammed online, there were clues—broken English, stock photos, inconsistencies in their story. Those days are over. AI has taken romance fraud to a terrifying new level.

Scammers now use deepfake videos to create convincing live video calls. Victims think they’re talking to a real person, but it’s nothing more than a digital puppet controlled by a criminal. AI-generated fake profile photos are now so advanced that a reverse image search won’t reveal anything—because the person in the picture doesn’t actually exist. Synthetic voice technology allows scammers to clone real voices, making it seem like you’re speaking to a loved one. Some victims have received phone calls from what sounded like their own relatives, begging for money.

With these tools, a single scammer can run dozens of romance scams at once, around the clock, with AI chatbots carrying on perfect, personalized conversations. They never need to sleep, never get sloppy, and never break character.

In one chilling case, a seventy-seven-year-old woman in the UK fell for a scammer using AI-generated videos. When she became suspicious, the fraudster sent a selfie video to prove he was real. It looked authentic. It sounded authentic. It wasn’t. She lost seventeen thousand pounds before she finally realized she’d been played.

This is the future of fraud. And if you think it won’t happen to you, remember: scammers don’t just target the gullible. They target the lonely.

How to Protect Yourself

There are warning signs. They avoid in-person meetings or video calls, or their camera always has issues. They confess love shockingly fast, often within days or weeks. They ask for money—for medical emergencies, travel costs, or investments. Their stories sound scripted, or they dodge specific personal questions.

If you suspect a scam, cut off contact immediately. Block them. Don’t engage. Run a reverse image search on their profile pictures if possible. Ask for a real-time video call and request something specific, like holding up today’s newspaper. Deepfakes struggle with spontaneity. Never send money or share financial information, no matter how convincing they sound.

What to Do If You’ve Been Scammed

  • Cut off contact immediately.

  • Block them on all platforms.

  • Do not respond to further messages.

  • Report the scam.

In the U.S., file a report with the FBI’s Internet Crime Complaint Center or the Federal Trade Commission. In the UK, contact Action Fraud. Try to recover funds by reaching out to your bank, wire service, or crypto exchange. If the transaction hasn’t cleared, there may be a chance to reverse it. Secure your identity by changing passwords and considering a credit freeze. Seek support from organizations like the Cybercrime Support Network or the AARP Fraud Watch Network.

The Future of Fraud—and How We Fight Back

Romance scammers aren’t going anywhere. AI is making their job easier than ever. But technology is also fighting back. New tools like AI-powered deepfake detection, scam filters, and digital watermarks will soon help verify real versus fake content. Banks are developing AI-driven fraud alerts to flag suspicious money transfers before they happen. Social media platforms are under growing pressure to crack down on fake profiles and bot accounts.

Until then, the best defense is awareness. If something feels off, trust your instincts. Love is patient—but scammers are not.

Stay sharp, stay skeptical, and don’t let the fraudsters win.

Join Me and the Spy Museum for Operation Cherry Blossom – A Real-World Spy Mission

Ever wondered what it’s like to track a target through a crowd without being spotted? Or how spies blend into the background while gathering intelligence? Now’s your chance to find out.

On April 7, I’ll be leading Operation Cherry Blossom—a hands-on surveillance workshop at the International Spy Museum in Washington, DC. This isn’t a lecture. It’s a real-world mission where you’ll learn the art of covert tracking, counter-surveillance, and the subtle tricks operatives use to stay invisible—all while navigating the bustling streets of DC under the cover of the city’s iconic cherry blossoms.

Think you can move through the city unnoticed? Join me, and let’s find out. But be warned—once you see the world through a spy’s eyes, you’ll never look at crowds the same way again. Spots are limited, so secure yours now.

Now on to the news!

News Roundup

AI Deepfake Scam Targets YouTube Creators

Scammers just took phishing to the next level. They’re using AI-generated videos of YouTube CEO Neal Mohan to trick creators into thinking major policy changes are happening. The fake video, shared privately, convinces users to hand over login credentials—because, hey, if the “CEO” says it, it must be true, right? YouTube is urging creators to stay sharp and remember: real executives don’t send out secret videos asking for your password.

AI Can Crack Your Password Before You Finish This Sentence

Think your password is safe? Think again. AI-powered password crackers can now brute-force an eight-character password in minutes—or seconds if you’re still rocking “Password123.” Thanks to AI-driven computing power, cybercriminals don’t need months to break into accounts anymore. The fix? Use long, complex passphrases, enable multi-factor authentication, and ditch anything a hacker (or their AI) could guess before you’ve had your morning coffee.

U.S. Broadband Policy Shift: Fiber Optics Take a Backseat

In a move that's sure to raise eyebrows, the U.S. Commerce Department plans to revamp the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) Program, shifting focus from fiber-optic networks to a more "technology-neutral" stance. This pivot could channel substantial funds toward satellite providers like Elon Musk's Starlink, potentially boosting their share from $4.1 billion to between $10 billion and $20 billion. While proponents argue this approach could expedite rural broadband deployment and cut taxpayer costs, critics contend it might compromise the reliability and long-term benefits that fiber networks offer. States and Congress are gearing up for a showdown, especially since many have already laid the groundwork for fiber-centric projects.

AI: Bridging the Gap Between Humans and Animal Communication

Artificial intelligence is no longer just about smart gadgets; it's now venturing into the realm of animal communication.Researchers are deploying AI to decode the languages of various species, from the complex clicks of sperm whales to the chirps of birds. By analyzing vast datasets of animal sounds, AI can identify patterns and potentially translate these into human-understandable language. This breakthrough not only deepens our understanding of the animal kingdom but also paves the way for enhanced conservation efforts and a renewed connection with nature.

Become a Spy Hunter - Check out my LinkedIn Learning!

Ever wonder how spies really think? In my LinkedIn Learning course, I’ll teach you how to hunt cyber threats like a pro—because in today’s world, you’re either watching or being watched. You’ll uncover the real tactics spies and cybercriminals use, master tools like multi-factor authentication and least privilege, and learn how to spot and stop cyberattacks before they strike. If you love my newsletter Spies, Lies, and Cybercrime, this course is your next mission—because staying ahead of hackers isn’t a game, it’s a skill. Ready to level up? Let’s go.

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Eric

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