Romance scams cost US consumers $1.14 billion a year

Over the past two decades, the dating world has undergone a complete digital transformation with many people moving online to find love. But unfortunately, the rise of dating apps and social media profiles to find a mate have led to romance scammers preying on unsuspecting, and potentially vulnerable folks.

Romance Scams are on the Rise 

In 2023 alone, romance scammers stole $1.14 billion from Americans, according to the Federal Trade Commission (FTC). Victims lost a median of $2,000 each, the highest reported losses for any form of imposter scam – and it’s important to note that these numbers go underreported, often due to victim shaming.

According to Norton, online dating scams skyrocketed 72% in the past year, with 27% of dating app users reporting they were targeted. Nearly a third were ‘catfished’ by fake personas.

Did you know?

Nearly 350 million people used dating apps globally in 2023, compared to 200 million in 2015. Dating app revenues have increased every year since 2015, reaching $5.34 billion in 2023. In the US, Tinder has been the most popular dating app since its inception.

Deepfakes fuel AI-driven romance scams

As Artificial Intelligence (AI) becomes more sophisticated and accessible, so do the risks of romance scams using AI and tools like Generative AI.

Phishing attackers use AI and open-source intelligence to send personalised impersonation attacks, making it increasingly challenging to spot. With Tinder the most used dating app, it’s no surprise Tinder is the most impersonated dating app, with a 43% increase in attacks in 2024 compared to the previous year.

Even more alarming: scammers employ AI to create deepfake images and videos, making the fake identities and profiles used in romance scams more convincing. In the latest elaborate AI-driven romance scams, new face-swapping technology in video chats enables cyber swindlers to deceive love-seekers through real-time, realistic video calls and photos, used to build trust with victims before tricking them into parting with thousands of dollars.

Spot the Warning Signs

Here’s some of warning signs to help you, a friend or a family member determine if a potential online mate might be a romance scammer:

1. They generally won’t meet you in person 

• You might find yourself showing up at places to meet them and there’s always a last minute excuse as to why they can’t be there.
• But, beware, as some culprits have made careers out of scamming people in person to financial ruin, notably the Tinder Swindler, who was popularized in a Netflix documentary. If you do end up meeting them in person and it sounds too good to be true, use caution when moving forward in the relationship.

2. They won’t do a video chat or if they do, their video is inconsistent 

• Detecting deepfake video chats requires vigilance and a keen eye for subtle inconsistencies. Look for unnatural eye movements or blinking, mismatched audio and lip-syncing, awkward or robotic head and body movements, and inconsistencies in lighting or shadows. Deepfake technology often struggles with these finer details, making them key indicators.
• Staying aware of these signs can help protect you from falling victim to deepfake deception.
• If you’re unsure, consider using tools like Trend Micro ScamCheck’s Deepfake Scan for real-time analysis and alerts.

3. The potential scammer starts to isolate you from your friends and family 

• This is a common tactic used in romance scams so that the cyber criminals can better take advantage of you to get what they want.
• Some scammers make contact on popular dating apps, others send you a message ‘out-of-the-blue’ on social media with something you seemingly have in common to make a personal connection. Like entrepreneur Bekka Fraser, who was contacted on her LinkedIn by someone posing as a Middle-Eastern royal, pretending they have a common business connection. What started as a request for entrepreneurial advice soon became an elaborate romance scam that preyed on Bekka’s shame to isolate her from her family and friends – and robbed her of her savings and dignity. Thankfully, BOXX Insurance was there to help. Always keep a friend or family member in the loop and trust when they express concerns about a new online friend.

4. They start to ask for money 

• At first, the asks might start out very small around $50 or $100 to pay for a bill, but once the scammer has succeeded, they will continue to ask for more and in larger increments. Over time, this could cost thousands of dollars or even hundreds of thousands of dollars leading to financial ruin. The average reported cost of a romance scam is around $2,000 with the median loss per person being reported as $2,000 as well.
• And when they ask for money, it’s always a dramatic or pressing situation that requires immediate payment. According to 2022 reports to the FTC’s Consumer Sentinel Network, 24% of romance scammers fall back on the lie that they need money because they (or a family member) are sick, hurt, or in jail. The romance scammer will also be very specific about how you pay them, potentially in gift cards or untraceable methods like cryptocurrency. Never send money, crypto, gift cards, bank or wire transfers, or anything else to anyone you haven’t met in person.

5. The potential romance scanner asks for sensitive personal information and inappropriate photos of you 

• Use caution, especially if you have not met them in person. While this could be a normal part of courting someone in today’s technology era, these could be used to extort or blackmail you in the future.

At BOXX Insurance, our purpose is to make the world a digitally safer place. Our Cyberboxx^® Home product covers fraud, identify theft and cyber bullying which can be associated with a romance scam.  

What To Do if You Suspect You’re Involved in a Romance Scam 

If these romance scam warning signs are prevalent and you suspect that you or a loved one is dating could be a romance scammer, here’s some tactics to help you validate or dismiss your assumptions:

1. Do a reverse image search of the potential romance scammer using a tool like Tineye 

• This will indicate if the image is being re-used on the internet at large. It will also pull up other similar scammer profiles or warnings from the people who might have had their images used for other types of cyber-crime or romance scams.
• If you are not the best with technology, talk to a friend or family member that you can trust. They will most likely help you.

2. Search online for traits related to the romantic situation plus the word “scammer”  

• There are some common scams out there, particularly people creating fake stories (for example, about being a former military vet that has been widowed). Scammers like to leverage stories with emotional hooks and use the same tactics to prey on their victims, which are widely accessible online. A good rule of thumb: sad stories are scam stories.

3. Protect yourself if you have revealed sensitive information 

• Immediately change any sensitive online passwords like your email, banking, government, social and investments accounts. Contact potential service providers to let them know that you suspect fraudulent activity under your name, and that there should be additional safeguards in place to protect any access to your accounts.

4. If you have cyber insurance coverage, contact them.

• At BOXX Insurance, we provide additional risk prevention services like the Hackbusters^® incident response team who can help provide advice to protect you against cyber bullying and extortion.
• Initially ashamed to talk to her family or get help, Bekka relied on the support from her family, therapist, her BOXX insurance policy and the BOXX Hackbusters team to regain control of her finances and her life.

If you have been the victim of a romance scam, here’s what we recommend:

1. Stop all communications with the person immediately.
2. Report them to local crime officials:
   • Unfortunately, most romance scams go underreported due to the perceived social shame and the victimization of those impacted, but reporting these culprits is the best thing that you can do, as it might prevent future scams.
   • In the US, you can report it to: ReportFraud.ftc.gov

3. Report the account profile to the social site or app where you met them
   • Their profile will then be flagged and it might be taken down to protect others.