In 2023, people have lost $1.14 billion over romance scams, according to report! Find out how to stay alert!
Cybercriminals are increasingly targeting wealth accounts by preying on victims’ emotions through romance scams. These scams involve building a relationship and gaining the victim’s trust, making them more likely to willingly provide access to their accounts or transfer money.
According to Tracy Kitten, director of fraud and security at Javelin Strategy & Research, these scams “tend to be some of the more insidious because they prey on emotions”, making them particularly effective and damaging. “These things happen in real life, these aren’t just shows that we see on Netflix”, she added. In 2023, consumers lost $1.14 billion to romance scams, with median losses per person reaching $2,000, the highest among all types of imposter scams, according to the Federal Trade Commission (FTC).
“What people need to realize is that people behind these types of scams could teach a master class in human behavior. They know the different emotional trigger points that we all have, and that’s when they strike”, said Theresa Payton, a former White House chief information officer who is now the CEO of cybersecurity firm Fortalice Solutions.
Payton explains that they pretend to be someone they are not to build relationships with victims online, often through social media, and gradually develop trust. Once trust is established, scammers convince victims to send money, provide bank account access, or even launder money for them.
“It’s a really easy way for them to fool their victims because there’s no face-to-face contact. At this point, we’re all exposed. Even if you don’t have a big social media footprint, your data points are out there”, she said.
A Javelin survey of 1,500 financial advisors, done in July 2023, found that 22% had clients who were victims of romance scams. Additionally, the FTC found that 40% of people who lost money to this type of scam in 2022 said the initial contact occurred on social media.
How to Spot a Romance Scam
According to Payton, “the biggest red flag” is when the new contact starts asking for money. Here are other warning signs to watch out for:
- Unsolicited Messages: scammers use bots to send messages to many people, hoping someone will respond;
- Too Good to Be True: if the person shares too many common interests and wants to move the conversation to a different platform quickly;
- Not Wanting to Meet in Person: scammers often avoid meeting in real life, or they may ask for money to cover travel expenses;
- Isolation Attempts: if the scammer discourages you from talking to friends or family about the new relationship;
- Pressure Tactics: if the scammer pressures you to keep up the relationship or asks for financial information or money.
How to Protect Yourself
Here are five steps you can take to prevent becoming a victim of this scam, according to Payton:
- Reverse Search the Image: use online tools to verify the images the person is using;
- Check Privacy Settings: be mindful of the information you share on social media;
- Take Your Time: ask questions about their background and look for inconsistencies in their stories;
- Avoid Financial Transactions: do not send money or financial information to the person. Discuss the situation with trusted friends, family, or advisors;
- Meet in Public: arrange to meet in a public place or near a police station. If the person acts suspiciously, it’s a red flag.
If you encounter suspicious profiles or messages, report them to the online platform you’re using and to the FTC at ReportFraud.ftc.gov. If the situation escalates, report it to the FBI. Victims can also seek free support and counseling through The Cybercrime Support Network, which offers a free 10-week virtual romance scam recovery group led by licensed counselors.