United States:
The FTC Issues Latest Report On Romance Scams Just In Time For Valentine’s Day
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In the lead up to this Valentine’s Day, it seems like
everyone is determined to kill any semblance of romance in the air.
The Tinder Swindler, a documentary about a con man who used
the dating app Tinder to defraud multiple women, is one of the most
popular shows on Netflix right now. (I highly recommend it).
Valentine’s Day flower prices are at an all-time high.
And the FTC issued its
latest report on romance scams last week, disclosing that
consumer losses to romance scammers have gone up 80 percent since
2020, reaching a record high of $547 million in 2021. (Please take
a look at previous posts from my colleagues on similar FTC and BBB
reports
here,
here, and
here).
When the call went out to my advertising colleagues to report on
this latest legal news, I jumped at the chance – still
reeling, as I was, from the aftermath of The Tinder Swindler
(spoiler alert: this guy is still out there, just living his
life!). Also, let’s be honest, nobody else in my
advertising group has personally navigated (or admitted to
navigating) the treacherous waters of dating apps like I have, so
who better to report on these disturbing trends than me.
Luckily, my dating app adventures can best be described as a
mixture of fun, awkward, and cringeworthy – but they
ultimately led me to marital bliss (#blessed). Even more
thankfully, our relationship was not formed under the guise of a
criminal enterprise, but instead was built on the type of innocent
white lies everyone has in their dating app profiles (Him: his
height; Me: despite a profile pic at Dodgers Stadium, in my LA
Dodgers gear, I have zero interest in the Dodgers – or baseball for
that matter. I mean, you can’t help where your most
flattering picture is taken, right? Although I’m sure
many would say the implied claim was blatant false
advertising:)).
Anyway, I digress.
The FTC’s recently issued report reminds consumers to be
vigilant of romance scammers, who tend to follow a predictable
pattern of using pictures stolen from the internet to build a false
persona – and ultimately asking for money from the unwitting
consumer for various reasons. While many people reported
these scams originating on dating sites or apps, social media was
also another frequent place of initial contact between scammers and
their victims, with scammers sending private messages on the social
platforms. The FTC also reported a new trend of romance scams
in 2021 involved scammers luring consumers into phony
cryptocurrency investment schemes – with reported losses in
cryptocurrency totaling $139 million in 2021, more than for any
other payment amount. Despite the increase in cryptocurrency being
used for such scams, most consumers report sending money to
scammers via old-fashioned gift cards.
The FTC provides the following tips for consumers to spot
scammers when looking for love online, and encourages individuals
to report suspicious profiles or messages to the dating app or
social media platform, and to report such activity to the FTC
at ReportFraud.ftc.gov:
- Nobody legit will ever ask you to help by sending
cryptocurrency, giving the numbers on a gift card, or by wiring
money. Anyone who does is a scammer. - Never send or forward money for someone you haven’t met in
person, and don’t act on their investment advice. - Talk to friends or family about a new love interest and pay
attention if they’re concerned. - Try a reverse-image search of profile pictures. If the details
don’t match up, it’s a scam
Of course, dating platforms should also be doing their part to
provide a safe environment in which individuals can find love
– or let them abandon their search without a hassle.
This seems like a good opportunity to remind our readers that
dating sites have gotten in trouble in the past for failing to
comply with state auto-renew laws, requiring that they clearly and
conspicuously disclose to consumers the fact that their contracts
with the site would automatically renew, the amount of ongoing
payments, or how to cancel those contracts. My colleague wrote
about eHarmony’s 2018 settlement with the Napa County District
Attorney
here, in which the dating site was forced to revise its
disclosures to consumers and make payments of $1 million in
restitution to its customers and $1.2 million in civil
penalties.
After that sobering news, I’d encourage you all to follow my
lead this Valentine’s Day to avoid any risk of a romance scam.
I’ll be happily watching J.Lo’s newest rom com, Marry
Me, at home with my friends because true love really
“don’t cost a thing.”
www.fkks.com
This alert provides general coverage of its subject area. We
provide it with the understanding that Frankfurt Kurnit Klein &
Selz is not engaged herein in rendering legal advice, and shall not
be liable for any damages resulting from any error, inaccuracy, or
omission. Our attorneys practice law only in jurisdictions in which
they are properly authorized to do so. We do not seek to represent
clients in other jurisdictions.
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