My Phony Valentine: Covid fuels romantic scams

Last year, nearly 32,800 romantic scams were reported, nearly 31 percent compared to 2019, according to data from the Federal Trade Commission released last week. Consumers reported a record loss of $ 304 million for the scams, an increase of nearly 51%, the FTC said.

Romantic scammers often create fake online characters to develop relationships with victims through online dating apps or social media platforms. However, they stay away, excusing why they can’t be found in person. Sometimes it’s a fake military deployment, other times, an assignment made on an offshore oil rig, said Monica Vaca, associate director of the FTC. As a virtual relationship is strengthened, scammers make requests for money, which often disappear once cash is available.

The current conditions are ripe for this fraud, Ms Cow said. Social distancing has complicated dating in person. People spend more time online. There is a general increase in the use of dating applications. And the pandemic has increased the perceived credibility of requests for money, for example, for medical bills or car repairs to reach an appointment with the vaccine.

Travel restrictions and health reasons also offer scammers seemingly legitimate excuses to avoid meeting with victims. “We’re seeing in our reports people saying things like,‘ Oh, I can’t know; I just got my Covid diagnosis, “Ms. Cow said.” So that’s part of the story. “

Consumers need to be vigilant, he said, but so do companies that are required by anti-money laundering rules to report suspicious activities. “They have a very important role to play,” Ms. Cow said.

Preventing heavy transactions has become easier in recent years as financial institutions and money transfer companies have strengthened their data analysis tools. As scammers change tactics, companies can adjust systems to adapt to new patterns, allowing them to more quickly detect suspicious activities or questionable customers.

In part, this is how Western Union is Co.

has managed to keep abreast of evolving scammers ’tactics, said Tyler Hand, the head of compliance at the money transfer company. Improvements in Denver-based control technology in recent years have led to a decrease in the number of scams related to the company’s history, including the last calendar year, he said. Some of these changes were made as part of an agreement with federal authorities, including the FTC, for alleged failures to police customers who may be committing fraud.

Something that cannot be solved with an algorithm: human credulity in the face of a possible romance. That’s why Western Union and its competitor MoneyGram International Inc. they claim that customer outreach and education is also key.

MoneyGram tightened its control in part because of complaints from the FTC that the Dallas-based company failed to take action to crack down on fraudulent money transfers, allegations that the company agreed to in 2018. technology, MoneyGram also has a process for talking to customers marked as potential victims of fraud, which has helped reduce romantic scams through the company’s services, according to Andy Villareal, MoneyGram’s chief compliance officer.

If the requested money transfer is marked as suspicious, MoneyGram may ask if the sender has known the previous recipient before completing the transfer. The company can also tell the customer that it could be the victim of a fraud, he said.

These calls usually have denial; people don’t want to believe they’ve been scammed because they’ve established a connection with the recipient, Villareal said.

“The reality is that scammers are very good at identifying the types of psychological aspects they can connect with their victims,” he said. “They exploit them and they practice a lot.”

Write to Jack Hagel to [email protected]