Romance scam reports increase by 9% in UK
Payment service providers and online platforms have a role to play in combating romance fraud, the UK's Financial Conduct Authority said on Friday (October 17).
The regulator said in a press release on Friday that it issued a romance fraud review based on reviews of six companies, including retail banks and payments companies.
Steve Smart, executive director of enforcement and market oversight at the FCA, said in a press release: “We recognize the challenges banks and payments firms face in combating this complex crime and this review is designed to help them stay one step ahead of criminals.”
Romance fraud is a growing financial crime in which scammers form a false relationship or friendship with their victims and then trick them into sending them money, the release said.
In the UK, reports of romance fraud increased by 9% in the 2024/2025 financial year, causing more than £106 million (approximately $142 million) in losses, with the average loss to victims being £11,222 (approximately $15,037), the review said.
The report says the true scale of romance scams may be greater because victims often don't report the crime.
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Since 85 percent of romance fraud cases begin online, social media sites, dating sites and other online platforms can play a role in preventing this form of fraud, the release said.
Based on the review, measures the platforms can take include increasing user awareness, promoting safe online behavior and detecting and removing fraudulent content.
Banks, building societies and other businesses offering payment accounts can take a number of steps to combat romance fraud, the review said.
These payment service providers can detect high-risk payments and create temporary blocks by requiring customers to interact with staff; capture details about fraud incidents and share this information between sending and receiving companies to help improve anti-fraud systems and controls; engage with victims to help them realize they have been defrauded; identify customers who may be at higher risk of fraud so that early intervention can be initiated; and launch campaigns and educational resources based on reviews to raise awareness of romance fraud.
“Firms must continue to ensure that their systems are able to detect relevant risk indicators and that staff have the ability to meaningfully engage with customers, identify red flags and respond appropriately, particularly where customers are showing signs of vulnerability,” the review said.
PYMNTS reported in February 2024 that digital tools such as artificial intelligence deepfake images are driving the rise of online love fraud by making it more sophisticated and convincing.
The PYMNTS Intelligence and Featurespace collaboration “The Impact of Financial Fraud on Consumer Finances and Banking Habits” found that romance scams cause greater financial losses than other forms of fraud, with an average loss of $1,996.
