Yahoo Finance Valentine's Day: Beware of romance scams
With Valentine’s Day looming, Brits are being told to keep an eye out for romance scams which could lead to them losing thousands of pounds to fraudsters who masquerade as romantic partners.
The number of people who fell victim to a romance scam in the UK increased by more 16% over the last year, according to new data from Lloyds Bank (LLOY.L).
Victims lose £8,655 on average.
But, the losses are even higher for people aged between 55 and 65, who lose £15,957 on average.
Consequently, people are being told to watch out for this type of fraud in the lead up to Valentine's Day on Monday.
What is a romance scam?
Like most fraudsters, romance scammers play on the emotional vulnerability of their victims, but these criminals use the illusion of love to trick someone into transferring them money.
Liz Ziegler, fraud prevention director at Lloyds Bank, said: “Romance scam victims don’t just lose thousands of pounds, they also have to deal with emotional betrayal, as callous scammers build relationships under a veil of apparent trust and care.
“Their convincing back stories mean that victims think they are falling in love, when they’re actually falling for a scam.There’s no genuine connection when it comes to romance scams, with fraudsters targeting multiple victims at a time, and disappearing as soon as they think they’ve got as much cash as they can.”
She added: “It’s vital that people are able to spot the warning signs. If you’ve started an online relationship and the discussion turns to money – regardless of the reason or the amounts involved – this should be a big red flag that you’re about to get scammed."
While those most at risk of romance scams tend to be over 45, younger people are also falling victim to this form of identify fraud, which is sometimes referred to as 'catfishing' when it happens on social media and dating apps.
Last year, an average of £2,128 was lost by victims aged between 18 and 24, while people aged 25 to 34 lost an average of £3,193.
How can you avoid romance scams?
1. Never send money to someone you've never met in real life
You should be concerned if someone you’ve never met is asking you to send money to them, particularly if the reason is fantastical, or for something you’ve never heard them mention before, Llloyds Bank has warned.
It's important to remember that a romance scam targets emotions, so the fraudster might lie about family or legal issues, business problems or medical bills to guilt trip you into transferring them money.
2. Consider whether you are being 'catfished'
An easy way to spot a romance scam is it the person asking for money refuses to meet you in real life as this suggests they have something to hide.
Unsurprisingly, social media has played into the hands of scammers who can easily pretend to be someone else by using fake information on their profiles and stealing other people’s photos.
More recently, the COVID-19 pandemic has been used by scammers as an excuse for not being able to travel or meet in person.
3. Do your own research
If someone is putting pressure on you to send them money quickly, you should pause and try to find out more information. You could speak to a trusted friend or family member, or do some research online on reputable dating sites, about what you’re being asked to do.
4. Keep your personal details private
Even if you think you think you're falling in love with someone online, you should never share your personal banking details, card information, or log-ins to financial websites with them.
5. Don’t move money for someone else
Scammers will often try to fool people into moving the proceeds of crime around for them, in a tactic called ‘money muling.’ But, you should never agree to moving money for someone you don't know as even if you’re not aware that you’ve moved illegal funds, you can still be prosecuted.
Watch: Minister tries to argue people don't consider fraud a crime in awkward interview
