Romance or Friendship scams are a type of scam in which fraudsters target victims via social media, such as Facebook, X (formerly known as Twitter), Instagram, and others, to earn trust and ultimately gain access to their funds. In some cases, the fraudster might even be a new neighbor, caregiver, or other real-life connection with bad intentions.
How does it work?
Fraudsters create fake profiles across different social media apps and try to befriend their target. They accomplish this by liking and reacting to posts, leaving comments to initiate conversations, and later sending friend requests. Once added, the fraudster will begin sending instant messages/direct messages to the victim.
In real-life connections, they may simply offer companionship, assistance with household tasks, or even financial advice. In both cases, their goal is to grow the relationship and build trust.
What is their Goal?
These scams have been known to last months and even years. Their goal is to first gain trust and then access the victim’s finances and personally identifiable information (PII).
Once they have the victim’s financial account credentials, they will begin methodically stealing their money by sending ACH payments, depositing bad checks, initiating wires, etc.
With the victim’s personal information, the fraudster can establish new accounts at other financial institutions to move the money.
What signs can you watch for?
Sadly, these scams happen all too often. The signs can be subtle and easily missed. Old Glory Bank trains our employees to watch for the signs of romance scams or elder abuse when conversing with a customer. If you are caring for a senior or vulnerable adult, be aware of these important signs:
New "Friends" or Helpers – Some victims fall for these scams that trick them into transferring or wiring funds to an account, buying gift cards, or writing checks to a third party.
Unusual Financial Activity – Look for unexplained withdrawals, large expenditures or transfers, or sudden changes in spending habits and banking practices.
Forged Signatures – Be watchful for signs of forgery on checks or other financial documents.
Increased Account Activity – A sudden increase in account activity (transactions, transfers, or logins to online banking) that is inconsistent with the individual's usual spending habits may indicate unauthorized access to the account.
If you suspect you or someone you know has fallen victim to a relationship scam like this, please report the scam to your local law enforcement and your financial institution(s) as quickly as possible.
Read more about ways to protect yourself and your loved ones from fraud and other financial crimes.
