Love or Lies? Unmasking A Financial Romance Scam
Finding love online has become increasingly common. However, with the rise of online romance, comes a surge in financial romance scams. These scams prey on individuals' emotions and trust, leading to devastating financial losses.
This month, our Horicon Bank Fraud Fighter Matt Peterson caught a romance scam before our customer lost money to the fraudster.
Tell us Matt, what happened?
Matt: A customer came into our bank to deposit a check for $9,800. The check had his name on it and was from another bank. He asked when the funds would be available, which raised some red flags for us.
So his questions about the availability of the funds felt out of the ordinary. Did anything else about the interaction feel suspicious?
Matt: When I started asking more questions about the check, the customer mentioned that the situation was complicated. As we talked more, I discovered that he had been talking to a woman online for a long time, and they were romantically involved. She was overseas and needed him to deposit a check into his account and then send money to a charity.
How did the scammer convince your customer to deposit the check?
Matt: The scammer told the customer that she had "added him to her account" at another bank and sent him two books of checks to write out and make deposits. The customer was already somewhat suspicious of this request, which is why he came to us for help.
What did you do next?
Matt: I informed the customer that I was sure it was fraud and that we would not deposit the check. We followed our procedures for verifying the check and confirmed it was fraudulent.
What advice would you give to others to avoid falling victim to financial romance scams?
Matt: Scammers are often highly clever and resourceful. They will manipulate your emotions and use various stories to deceive you. Be very cautious when interacting with people you've only communicated with online or electronically. If they refuse or make excuses why they can’t engage in a video chat or phone call, consider this a red flag. If they ask you to send money or handle financial transactions for them it is a scam. If you suspect you're being scammed, stop communicating with the person immediately. Contact your financial institution and the local police.
What are some common red flags to watch for in financial romance scams?
- Requests for money: Scammers often ask for money to be sent for various reasons, such as emergencies, travel expenses, or charitable donations.
- Check overpayment: Be careful if someone sends you a check for more than what is owed and asks you to return a portion of the fund. Oftentimes, the check is fake. By the time the check is discovered to be phony, the money has been sent, and the victim is liable for the full amount of the fraudulent check.
- Unverifiable stories: Be cautious if the person you are talking to has a complicated or unverifiable story, especially if it involves being overseas or in a remote location.
- Pressure to act quickly: Scammers may pressure you to act quickly and not give you time to think or verify their claims.
- Inconsistent information: Look out for inconsistencies in their stories or information that doesn't add up.
- Requests for personal information: Be wary if they ask for personal or financial information, such as bank account details or social security numbers.