Romance-related scams surge
Is it love? Maybe not. The FTC announced this week that romance-related scams have surged recently and generated more losses than any other consumer fraud reported to the agency last year. The number of these romance scams reported to the agency jumped from 8,500 in 2015 to more than 21,000 in 2018. And the amount lost by victims has quadrupled over that period — reaching $143 million last year. The median reported loss for victims was $2,600, about seven times more than other fraud tracked by the FTC.
Romance scams vary but criminals typically find their victims online, through a dating site or social media. Scammers create a phony profile, often building a believable persona with the help of a photo of someone else and direct communication. They woo the victim, building affection and trust until they see an opportunity to ask for money.
The reason for the request can run the gamut but money to pay for a medical emergency or travel costs for a long-awaited visit are common. Some victims report sending money for one false crisis after another, according to the FTC. The money is often wired or given as gift cards, which allow the criminals quick and anonymous access to cash that cannot be easily tracked.
Anyone can be a victim, experts warn. But FTC data found reported romance scams happened most often to those in the 40 to 69 age group. Those 70 and older paid out the most to scammers, with median losses per person of $10,000.
“It can happen to you. Whatever you think, whatever you believe, you could be a victim,” said Alan Brill, senior managing director of the cyber risk practice at Kroll, a risk management company.
While romance-related scams have been around for ages, they’ve become more common and successful as people spend more time socializing and finding dates online.
It’s become so common the AARP launched an educational campaign that urges consumers to recognize the warning signs of a fraudster. These include: professing love too quickly, reluctance to meet in person, requests for money and photos that look more professional than an ordinary snapshot. Other warning signs include your suitor pressing you to leave the dating website or other forum to communicate via email or instant messaging.