People Misplaced $1 Billion To Romance Scammers Final Yr, FBI Says

Topline

About 24,000 People misplaced a reported $1 billion to romance scammers throughout 2021, the FBI estimated Thursday, marking what the Federal Commerce Fee said was probably the most profitable yr for love scammers on report—with many rip-off artists luring their victims into sending cryptocurrency.

Key Info

The FTC—which solely counts scams reported to its Shopper Sentinel Community, a database for scams and crimes like identification theft—mentioned Thursday losses from romance scams rose to $547 million in 2021, up from $307 million in 2020 and $202 million in 2019.

About 25% of losses from scams reported to the FTC final yr have been paid in cryptocurrency, with the median particular person cryptocurrency loss at $9,770, and the company mentioned a rising variety of scammers have tricked victims with faux cryptocurrency funding recommendation.

Although stories of romance scams elevated for each age group, the rise was biggest for folks ages 18 to 29, although folks in that group reported a median lack of solely $750, in comparison with $9,000 amongst folks age 70 and up, the group for whom losses have been biggest.

Although the variety of cryptocurrency-related scams grew virtually fivefold from 2020 to 2021, reward or reload playing cards have been probably the most frequent technique of cost, utilized in about 28% of final yr’s scams, in comparison with cryptocurrency at 18%, cost apps or companies at 14%, financial institution transfers or funds at 13% and wire transfers at 12%, in line with the FTC.

Many individuals focused by romance scammers are initially contacted on courting apps, however greater than a 3rd of final yr’s victims advised the FTC they have been first contacted on Fb or Instagram.

Key Background

The precipitous improve in on-line romance scams has coincided with a pandemic-driven increase in social isolation and a reliance on know-how to fulfill social wants. Tinder customers despatched 19% extra messages per day in February 2021 in comparison with February 2020, and dialog size grew 32% over pre-pandemic ranges, the corporate said. Romance scammers create faux on-line profiles utilizing images swiped from the net, typically creating identities with built-in excuses for not being accessible to fulfill in individual, comparable to serving within the army abroad. As soon as a scammer has gained the belief of their sufferer, they might request cash to assist resolve a supposed disaster, comparable to paying for medical remedy for a sick little one or resolving “processing charges” to launch funds that will in any other case be in jeopardy. To protect in opposition to these scams, the FBI mentioned anybody seeking to begin a romantic relationship on-line ought to “go slowly and ask a number of questions,” think about researching the opposite individual’s images to see if they’ve been used elsewhere and keep away from sending cash, cryptocurrency or reward playing cards earlier than assembly in-person.

Essential Quote

“We have to be cautious about casting sure teams because the ‘pure’ victims of scams,” Sarah Rutherford, senior director of portfolio advertising and marketing, international, fraud and compliance at analytics agency FICO, told Forbes. “The thought of the lonely, outdated lady struggling to make use of a pc to attach with the world could make others really feel it will by no means occur to them and decrease their defenses.”

Tangent

In 2012, pioneering particle physicist Paul Frampton was arrested in Buenos Aires after checking a suitcase with 2 kilograms of cocaine hid within the lining. Frampton, who was convicted of drug smuggling in Argentina and sentenced to 4 years and eight months in jail, mentioned he was lured into turning into a drug mule by a romance scammer posing as an expert swimwear mannequin.

What We Don’t Know But

Although the FBI on Thursday revealed an approximate determine of $1 billion in reported losses to romance scammers in 2021, a exact determine is not going to be accessible till the Web Crime Criticism Heart’s annual report is finalized. Moreover, many victims of romance scams probably didn’t report their losses, the FBI mentioned.

Additional Studying

“How To Stay Safe From Scammers Sliding Into Your DMs” (Forbes)

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