Romance Scams
What is it?
A criminal adopts a fake persona to gain a victim’s trust and uses the illusion of a romantic relationship to manipulate the victim into sending them funds or account information or making transactions on the criminal’s behalf. Who are the victims? All demographics can fall victim to romance scams. While seniors are often victimized, predators are also using these scams to target youth and teens.
How does it work?
In 2023, romance scams caused $3.8 billion in global losses with other confidence schemes.1 In these scams, the fraudster will contact the victim through social media networks, online forums, or dating sites, often taking several months to build trust. While typically located overseas, the fraudster may portray themselves as an American (military, business professional, etc.).
At some point the fraudster will initiate and escalate requests for money, claiming they need the funds for travel expenses to see the victim, emergency medical expenses, a business opportunity, or another fictitious purpose. The fraudster may also request online login details with a plan to gain access to the victim’s accounts.
Victims may be used as an unwitting money mule, moving funds for the fraudsters — without realizing they are laundering the profits of other crime
Sources:
- 2024 Nasdaq Global Financial Crime Report 4. Romance Scams, FBI, 2022 5. Money Mules: A Financial Crisis, IC3, 2021
- Internet Crime Report, FBI, 2021
- Scams are targeting teenagers. Here’s how to keep your kids safe., Washington Post, 2023
- Cyber Actors use Online Dating Sites to Conduct Confidence/Romance Fraud and Recruit Money Mules, IC3, 2019