Romance scams: Protecting hearts and wallets

Financial institutions play a crucial role in not only securing their clients' financial assets but also in protecting their emotional well-being from the rising threat of romance scams. It is essential to understand the red flags associated with romance scams and discuss openly with clients the steps to safeguard them from falling victim to these heartless crimes. Below are some of the red flags that will help identify these scammers before it’s too late.   

1. Too good to be true: If the person you're communicating with seems too perfect, be cautious. Scammers often create idealized personas to win your trust quickly. Be especially vigilant if the new love interest attempts to isolate you from friends and family. 
2. Unrealistic progression: Be wary of relationships that progress at an unusually fast pace. Scammers want to escalate emotions quickly to manipulate victims into making hasty decisions. Go slowly and ask the person questions to help verify that they are who they say they are.
3. Avoiding face-to-face interaction: If your online love interest consistently avoids video calls or in-person meetings, it's a significant red flag. Scammers prefer to maintain anonymity because they are not anything like who they say they are. 
4. Financial requests: The ultimate goal of romance scammers is to obtain as much money as possible from their victims. If an online partner asks for financial assistance, gifts, or access to your personal information, proceed with extreme caution. 

For financial institutions, identifying warning signs is critical to detecting fraud before the victim experiences devastating losses: 

1. Transaction monitoring: Implement transaction monitoring software and fraud detection software that detects patterns associated with romance scams, triggering alerts for further investigation. Monitor for irregular activities, such as large fund transfers or repeated small transactions, which may indicate a client falling prey to a scam. Be particularly attentive to transactions for seniors.
2. Sudden urgency for funds: Clients seeking immediate financial transactions, such as large wire transfers due to unforeseen personal crises, could be indicative of a romance scam. Strengthen customer verification procedures, especially when clients request fund transfers or changes to account details. Additional authentication layers can prevent unauthorized transactions. 
3. Unusual recipients: Pay attention to unusual or unfamiliar payees, especially those tied to romantic stories, as they may be conduits for fraudulent activities.
4. Educational initiatives: Launch comprehensive awareness campaigns to educate clients about the prevalence of romance scams, warning signs, and the importance of verifying requests for financial assistance. 

 The FBI shares these methods of protecting yourself from falling victim to romance scams: 

1. Research and verification: Before getting emotionally invested, perform a thorough background check. Verify the person's identity and use online tools to cross-check information. 
2. Guard personal information: Be vigilant before you share personal information online with a new relationship. Scammers can use details shared on dating sites and social media platforms to better target victims. Never share personally identifiable information with someone you've just met.
3. Be skeptical of sob stories: Scammers often use heartbreaking tales to elicit sympathy. While compassion is essential, exercise caution if someone consistently presents stories that seem too tragic to be true.
4. Stay on trusted platforms: While well-known platforms can have fraudsters lurking about, sticking to reputable dating platforms with strict security measures can lessen your chances of being scammed. Avoid moving communication to private email or messaging apps too quickly.
5. Protect your loved ones: If you notice older family members using new communications apps or dating sites, explain the red flags and pitfalls so they don’t fall victim to these criminals. This can be a difficult conversation, so try to catch it early.