WALL STREET JOURNAL – The number of romance-related frauds reported to the FTC rose ~70% in 2021, and the total amount lost jumped to $547M. The pandemic may have fueled the continued growth of romance scams as the coronavirus has provided a convenient excuse for scammers to say they aren't able to meet in person. Last year also saw scammers increasingly using romance as a hook to lure people into bogus investments, particularly those involving cryptocurrency. Cryptocurrency was the top method that victims used to make payments in 2021, at ~$139M. That is nearly five times the cryptocurrency amount reported in 2020 and more than 25 times that in 2019, the FTC said. In comparison, ~ $121M was lost through bank transfers or payments and another $93M through wire transfers in 2021, FTC data shows.
Category: Scammer
~40% of People Looking for Love Online Were Asked for Money
ONLINE DATING ASSOCIATION – Two in five people (38%) who dated someone they met online were asked for money. 57% of those who were asked for money said that they gave it or lent it The average amount of money people were asked for was £345, although some were asked for ~£1000 (6%). In the first half of 2021 alone ~£15M was lost to these sort of romance scams.
Romance Scams to Swindle $800M From Americans in 2022
ABC11 – That's how much one study is estimating Americans will lose to romance scams in 2022. With Valentine's day right around this corner, now is the time scammers will up their game and target those looking for love. Comparitech, an online security website broke down these crime statistics, and in North Carolina, ~$23M was lost to romance scams in 2021. The company claims, due to the COVID pandemic, the number of people getting caught up in romance scams is only getting worse. The group estimates a 59% increase in the number of romance scams by the end of this year, compared to last year.
Wells Fargo Survey: Singles Looking for Love Vulnerable to Scams
BUSINESSWIRE – According to a new Wells Fargo survey, over half of all singles (52%) have used a dating app or site, including one in five singles who are age 65 or over (20%). What's more, of those 52% of singles who've used a dating app or site, 63% have been contacted by somebody they thought might be a scammer. Furthermore, of all singles surveyed, one in three (33%) have known somebody who fell for an online romance scam.
Romance Scams Cost Americans $350M in 2021
ATLAS VPN – Atlas VPN analysis reveals that victims lost $343M (up 28% YOY) in the first three quarters of 2021. Elders ages 60-69 were affected the most, with $145M in monetary damages. To see the full report, please click here.
Romance Scams Robbed Britons of £100M Last Year
THE GUARDIAN – According to Action Fraud, the UK's reporting center for fraud and cybercrime, 8,863 cases were reported to the National Fraud Intelligence Bureau (NFIB) between November 2020 and October 2021, up from 6,968 the previous year, with total losses for the past year amounting to £92M. These figures are likely to be the tip of the iceberg – Action Fraud says the shame and stigma around romance fraud mean many people don't report it. The love-bombing tactic used by such scammers can be hard to resist.
FTC Warns of Extortionists Targeting LGBTQ+ Community on Dating Apps
BLEEPING COMPUTER – The US Federal Trade Commission (FTC) warns of scammers targeting the LGBTQ+ community via apps such as Grindr and Feeld. Fraudsters pose as potential romantic partners on LGBTQ+ dating apps, sending explicit photos and asking their targets to reciprocate. Victims are blackmailed to pay a ransom, usually in gift cards, under the threat of leaking the imagery. To make threats more credible scammers will state the names of exactly who they plan to contact (found online by using a phone number or social media profile) if victims don't pay up. The FTC advises LGBTQ+ dating apps users to avoid sharing explicit photos. Online dating platforms including Grindr and Feeld have also warned their users.
This warning comes after a similar one issued by the FBI Internet Crime Complaint Center (IC3) who has seen a massive increase in sextortion complaints since January 2021, leading to financial losses of over $8 million until the end of July. It received 16k+ sextortion complaints thru July 31, almost half of them from victims age 20-39. Victims should contact law enforcement, and file a complaint with the FBI IC3 immediately at www.ic3.gov.
Harassment Is the Status Quo on Dating Apps. This Woman Is Trying to Change That
LOS ANGELES TIMES – Aug 20 – Last fall, Match Group hired Tracey Breeden to lead safety and social advocacy. Her job is to coordinate safety efforts across the company's vast app empire and find organizations to cut down on in-app harassment and off-the-app violence. That led to her spearheading the background check partnership; bringing in a domestic violence prevention group to review the way harassment is supported and advising on Tinder features like "Are You Sure?" (a warning for out-of-pocket messages); the ability to block contacts; and plans to introduce optional ID verification next year. According to an Oct 2019 Pew Research Center survey, 57% of women on dating apps ages 18 to 34 said someone had sent them a sexually explicit image or message they didn't ask for, 44% said they've been called an offensive name and 19% said someone had threatened to physically harm them. Match Group's data shows that "Are You Sure" has helped reduce inappropriate messages by 10%. Breeden's biggest push at Match Group has been the partnership between Tinder and Garbo, a nonprofit background check company. Under the deal, Match Group made a "seven-figure" investment in Garbo to get it ready. Beta testing starts this fall; users will have the option to pay less than the cost of "a cup of coffee" to run checks on potential dates, she said.
How Background Check Startup Garbo Protects Online Dating Users
FAST COMPANY – Aug 10 – Kathryn Kosmides's experience leaving an abusive relationship inspired her to create an easy way for people to find out more about who they're dating. She created the nonprofit background check platform Garbo, which allows individuals to access public records of violent crimes for a nominal fee. With just a first name and phone number, Garbo users can look up records for someone they've matched with on an online dating app. Following a seven-figure investment by Match Group in March, Garbo's technology will be piloted on Tinder later this year. Garbo doesn't disclose sensitive personal details like home addresses when users search for a record. The platform already filters out non-violent offenses like marijuana possession and minor traffic violations.
Crypto Investors Lose $70M in Dating Scam
CNF – July 19 – 200 crypto traders from 20 countries have lost ~$70M in scams revolving around the cryptocurrency OEN. The scam was carried out by scammers pretending to be attractive Chinese women. They approached their marks on dating sites and went on to convince them to invest in crypto via text and voice messages on WhatsApp. After this, the "women" cut ties. A June report by Investopedia shows that cryptocurrency scams alone result in a loss of ~$9M each day.