Valentine’s Day is a time when people show their love and affection for one another. Unfortunately, it’s also a time when scammers and fraudsters take advantage of people’s emotions to steal their money. Financial services companies have an important role to play in protecting their customers from romance scams.

Romance scams are a type of fraud in which scammers use fake online profiles to gain the trust of their victims, often through online dating sites or social media platforms. Once they have gained the victim’s trust, they will ask for money, either for a supposed emergency or to pay for travel to meet the victim in person.

According to the Federal Trade Commission (FTC), Americans lost over $200 million to romance scams in 2019, with the average victim losing over $21,000. Financial services companies can help prevent their customers from becoming victims of these scams by implementing the following measures:

Educate Customers about Romance Scams:

Financial services companies can create educational materials that provide information on how romance scams work, what to look out for, and how to avoid becoming a victim.

Monitor for Suspicious Activity:

Financial services companies can monitor their customers’ accounts for unusual activity, such as multiple transactions to overseas accounts or large cash withdrawals. They can also use technology such as AI to identify patterns of behavior that may indicate fraud.

Require Additional Verification for High-Risk Transactions:

Financial services companies can require additional verification, such as a phone call or in-person visit, for high-risk transactions, such as wire transfers to overseas accounts.

Partner with Law Enforcement:

Financial services companies can work with law enforcement agencies to identify and track down romance scammers. By sharing information and working together, they can help bring scammers to justice and prevent future victims.

In conclusion, romance scams are a serious threat to consumers, especially around Valentine’s Day. Financial services companies have a responsibility to protect their customers from these scams by implementing education, monitoring and verification measures. By working together, we can help prevent romance scams and ensure that Valentine’s Day is a time of love and happiness, rather than fraud and deception.