The US Federal Trade Commission (FTC) has released a new report revealing that scammers managed to swindle a record €547 million from Americans looking for love online last year.
Yet over the last five years, Americans reported losing €1.3 billion to romance scams, which is more than any other category of fraud tracked by the FTC.
As with other scammers, romance scammers often create fake profiles with attractive photos stolen online that they use to trick potential victims, and sometimes even assume the identities of real people to appear even more believable.
While many victims said they were contacted on dating apps, others received unexpected private messages on social media platforms with more than a third of people who lost money in an online romance scam in 2021 saying it started on Facebook or Instagram.
In order to trick people into handing over their hard-earned money, romance scammers make up all sorts of believable stories, like cries for help, while claiming one health or financial crisis after another. These stories can also refer to a sick child or a temporary inability to get your money for various reasons.
Romance as a lure
A growing trend noted last year by the FTC involved scammers using romance as a hook to lure victims into bogus investments, and many of these involved cryptocurrencies.
After tricking victims into thinking they are a successful investor, these scammers offer those seeking loving investment opportunities that often involve trading foreign exchange (forex) or cryptocurrencies. However, following the scammer's advice often results in victims losing all the money they invested.
In 2021, the largest reported losses from romance scams were paid out in cryptocurrencies, amounting to €139 million. At the same time, however, more people reported paying romance scammers with gift cards than any other payment method. In fact, about one in four say they paid a romance scammer with a gift card and lost €36 million last year.
To avoid falling victim to online romance scams, the FTC recommends that people never send or transfer money to anyone they haven't met in person and avoid following their investment advice. However, it's also worth doing a reverse image search on their profile pictures to make sure they are who they say they are.