BOISE, Idaho (KIFI) – The Idaho Department of Finance is warning consumers to be on the lookout for romance scams in light of an increased number of reported complaints to various government agencies across North America.
In 2021 alone, consumers reported losing a staggering $547 million to romance scams, according to 2022 data from the Federal Trade Commission. The department recently received one such complaint from an Idaho consumer who suffered a substantial financial loss after falling prey to a catfishing scam – a form of a romance scam wherein the perpetrator creates a fictitious online profile to establish a relationship with a victim. Perpetrators of romance scams set online traps and use technology and social media platforms to target potential victims.
The online trap is often a fake user profile created by a scammer after researching their target’s interests, relationships, and established contacts, to appear credible and trustworthy. Once a relationship begins, it may grow increasingly serious and even progress over a long period of time before red flags appear. Ultimately the scammer will attempt to extract money from the victim or utilize the victim to carry out further financial harm, etc.
Romance scams can overlap with or evolve into other forms of fraud. Perpetrators may ask the victim to set up a business name and bank account leading the unwitting victim to commit money laundering by facilitating an avenue for the fraudster to obtain the proceeds of their scams. Scammers are increasingly posing as potential romantic partners to lure people into fraudulent investment schemes often directing the victim to invest or trade in cryptocurrency, a digital form of currency that can be very difficult to trace and recover. Other forms of payment that are virtually impossible to recover may include electronic payments, wire transfers, and pre-paid gift cards.
“Perpetrators of romance scams are particularly deceitful as they seek to prey on the vulnerabilities of individuals seeking genuine companionship,” said Patricia Perkins, Director of the Idaho Department of Finance. “A general awareness of the red flags associated with these scams may aid Idaho consumers in protecting themselves and their loved ones from falling victim.”
When we’re smitten with someone, we tend to lead with our hearts instead of our head. A romance scammer depends on this, encouraging you to not look too deeply into their background or the type of scheme they are promoting. Protect yourself by following these steps:
Be careful when you meet new people online, especially when you are looking for romance. Seeking a romantic partner is a complex and emotional experience at the best of times – so it’s a good idea not to mix business with romance. Don’t get swept away – make sure you are in a relationship with a real person who cares about you before even considering sharing financial information, making an investment, or loaning a person money.
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