Valentine Special: Romance Scams Generate Huge Consumer Losses

(February 12, 2019) Just in time for Valentine’s Day, the Federal Trade Commission reports that romance scams generated more consumer losses in 2018 than any other consumer fraud.

The FTC said in 2018 it received more than 21,000 reports of romance frauds totaling $143 million in losses to consumers, up sharply from losses of $33 million in 2015.

“Romance scammers lure people with phony online profiles, often lifting photos from the web to create attractive and convincing personas,” the FTC said. “They might make up names or assume the identities of real people. Reports indicate the scammers are active on dating apps, but also on social media sites that aren’t generally used for dating. For example, many people say the scam started with a Facebook message.”

Once the scammers have the victim’s heartstring, “they say they need money, often for a medical emergency or some other misfortune,” the report found. The scammers often claim to be in the military and stationed abroad.

The median individual loss was $2,600, which the FTC noted is about seven times higher than the median loss for all other frauds. Age makes a difference. Those between 40 and 69 reported losses at the highest rates, more than twice the rate for 20-somethings. To keep from being a victim, the FTC said:

• Never send money or gifts to a sweetheart you haven’t met in person.
• Talk to someone you trust about this new love interest.
• Take it slowly. Ask questions and look for inconsistent answers. Try a reverse-image search of the profile pictures. If they’re associated with another name or with details that don’t match up, it’s probably a scam.

To learn more about the scam, the FTC has a video for consumers available for viewing.