The Idaho Department of Finance is warning consumers to be on the lookout for romance scams in light of an increased number of reported complaints to various government agencies across North America.
In 2021 alone, consumers reported losing a staggering $547 million to romance scams, according to 2022 data from the Federal Trade Commission. The department recently received one such complaint from an Idaho consumer who suffered a substantial financial loss after falling prey to a catfishing scam — a form of a romance scam wherein the perpetrator creates a fictitious online profile to establish a relationship with a victim.
Perpetrators of romance scams set online traps and use technology and social media platforms to target potential victims. The online trap is often a fake user profile created by a scammer after researching their target’s interests, relationships and established contacts, to appear credible and trustworthy. Once a relationship begins, it may grow increasingly serious and even progress over a long period of time before red flags appear. Ultimately, the scammer will attempt to extract money from the victim or utilize the victim to carry out further financial harm.
Romance scams can overlap with/evolve into other forms of fraud
Perpetrators may ask the victim to set up a business name and bank account, leading the unwitting victim to commit money laundering by facilitating an avenue for the fraudster to…
