A record number of consumers have reported being victims of romance scams. According to the Federal Trade Commission (FTC), consumers lost a whopping $1.14 billion to romance scams in 2023.

With the increase in romance scams nationwide, Cadence Bank wants to help our customers and teammates protect their money and their hearts.

What is a Romance Scam?

Romance scammers create fake profiles on dating sites and apps or contact you through popular social media sites. The scammers strike up a relationship with you to build up trust, sometimes talking or chatting several times a day. Then, they make up a story and ask for money.

How a Romance Scam Works

Five Red Flags of Potential Scammers

• Unsolicited text messages - Scammers can use automated software to reach hundreds of people at a time through cell phone numbers, email addresses and social media accounts. Some messages are as simple as “hi.” Scammers only need one person to take the bait.
• Too good to be true - If the person is suddenly very interested in the same things as you and wants to carry the conversation in a different direct messaging platform, that can be another red flag.
• Refusal to meet in person - The scammer will make up excuses for not wanting to meet in real life. Yet, sometimes the alternative can occur: The scammer might ask for money for travel expenses to come out and meet you.
• Isolation attempts - If the scammer discourages you from talking to family or friends about your new romantic interest, it’s a red flag.
• Pressure tactics - If the new contact keeps badgering you to keep up the relationship or keeps asking for money or financial information, they may not be on the up and up.

Scammers’ Favorite Lies

Once a scammer gains the victim’s confidence, they may make up a story to explain why they have a sudden need for a financial favor. According to the FTC, these were the most common stories made up by scammers:

Reporting a Romance Scam As a Victim

• If you paid a romance scammer with a gift card, contact the company that issued the card right away. Explain the gift card you paid for was given to a scammer and ask if the money can be refunded.
• Notify your bank if your personal information was compromised.
• Change passwords on all your email, social and financial accounts.
• Report romance scams to dating or social networking sites.
• File a complaint with the FBI’s Internet Crime Complaint Center (IC3).
• Report the scam to the FTC.

Romance scam victims may be reluctant to report the crime because they are embarrassed and humiliated that they were fooled. If you have been the victim of a romance scam, it’s important to take action. The intimate and personal information victims often provide can be used for identity fraud and financial account takeover schemes. Taking action and reporting the scam can help prevent further financial damage and risk.

The best defense is to be proactive and avoid falling for scams in the first place. To help you stay vigilant against romance scams and other risks, please visit the Cadence Bank Fraud and Security Center for resources and tips.

Sources:

https://www.cnbc.com/2024/07/03/heres-how-to-avoid-romance-scams-which-cost-consumers-1point14-billion-last-year.html

https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2023/02/romance-scammers-favorite-lies-exposed

https://www.fbi.gov/contact-us/field-offices/baltimore/news/as-valentines-day-nears-be-aware-of-the-dangers-of-romance-scams

https://www.ftc.gov/news-events/news/press-releases/2023/02/new-ftc-data-reveals-top-lies-told-romance-scammers

This article is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes.