Dating or Defrauding?

Love is in the air, but that optimistic mood can take a terrible turn for people that fall victim to dating scams. Five federal agencies are joining forces to generate more awareness! 

by Amy Kleinschmit, Chief Compliance Officer

Romance Scams
It’s Valentine's Day, love is in the air, but that optimistic mood can take a terrible turn for people that fall victim to dating scams. According to the FBI’s Internet Crime Complaint Center (IC3), in 2020 alone, people who experienced romance scams lost over $600M. Romance scammers target people looking for love on dating apps and social media.

Recently, five federal agencies announced they have joined forces to remind the public about the ongoing dangers of romance scams. Together they launched Dating or Defrauding?, a national awareness effort to alert the public to romance scams that target victims largely through dating apps or social media.

According to the Federal Trade Commission (FTC), 2020 was a record year for romance scams. Consumer reports to the FTC indicate that the number of romance scam complaints continued to increase through 2021. A year-over-year comparison through the third quarter showed a 48 percent increase in reported romance frauds.

Take this opportunity to educate your members on how to recognize these types of scams before they become victimized. A number of resources are already available and more will be posted by the various regulatory agencies; the schedule can be found here.

The Consumer Financial Protection Bureau has a handout and placemat that can be shared with your community to raise awareness of these scams.

Some of the tips from the CFPB on how members can protect themselves from romance scams:

• Don’t share personal information – like bank account or credit card numbers, or your Social Security number – with a new love connection.
• If you ask a new love interest questions and they don’t give you straight answers or question why you’re asking, that could be a red flag.
• Never send money, gift cards, or wire transfers to a sweetheart you haven’t met in person.
• Limit what personal information you share online and on dating apps.
• Consider making your social media profiles private.

The Federal Trade Commission (FTC) has a number of resources that can be found here, including graphics, video, blog posts. Some tips the FTC provides if an individual suspects a romance scam:

• Stop communicating with the person immediately.
• Talk to someone you trust and pay attention if your friends or family say they’re concerned about your new love interest.
• Do a search for the type of job the person has to see if other people have heard similar stories. For example, you could do a search for “oil rig scammer” or “US Army scammer.” You can also browse the comments on past FTC blog posts about romance scams to hear other people’s stories:
  • Faking it – scammers’ tricks to steal your heart and money
  • Has an online love interest asked you for money?
  • Romance scams will cost you
• Do a reverse image search of the person’ profile picture to see if it’s associated with another name or with details that don’t match up – those are signs of a scam.

The US Postal Inspection Office also has some great resources that can be shared to help members protect themselves and family and friends, including PSA videos and tips. One particular impactful video is an individual sharing the story of how his father fell victim to this scam and lost his life savings, or this video of a victim sharing her story. Here is another poster/handout that might be useful.