Romance/friendship scams cost people more money than any other type of scam in 2024, according to the annual BBB Scam Tracker Risk Report. Romance scams also climbed to No. 3 riskiest scam for the first time since BBB began publishing the the report in 2016.
Romance scammers often target vulnerable people who have experienced a recent breakup or other hardship. They take advantage of that heartbreak to establish a connection and gain sympathy. Once they’ve gotten their victim on the hook with a sad story, they begin pursuing their true goal–money.
One woman in Connecticut shared her experience with this costly scam to BBB’s Scam Tracker, reporting that she lost a total of $100,000:
“This person contacted me by text and telephone. I saw their photograph on Facebook also. We started communicating in February of 2024. They told me their address was 9902 Devonshire Dr. Huntersville, NC. 28078. Shortly afterwards they told me they had to go on a ship to do work in the Gulf of Mexico. They said they were an independent engineer. They lost access to their money and I was their only source of money to eat on the ship. I started sending them money for food by Cash App and bitcoin machines. Later they needed to get off of that ship and they said a ticket was $63,000. I sent some of that money directly to people that he provided addresses to. He told me he would pay me back when h e got to the United States. Later it became apparent that he was not returning and had no intention of paying me back. I reported this to the police and the FBI. in November 2024.”
This scam also involves financial grooming, where the scammer builds a relationship with the victim before perpetrating the scam.
Financial grooming scams are often complex and devastating for victims. It can take weeks or months for the scammers to build trust with their targets. Once that happens, the scammer encourages the person to try investing, often in cryptocurrency. It always starts small, as trust builds over time. While the investment “grows,” the scammer encourages them to invest even more money. But then the person realizes too late, once they’ve invested a significant amount, that the platform is fake, and they can’t get their money back.
scam said they were encouraged by the scammer to deposit money into a cryptocurrency account. More than 50% said they realized it was a romance/friendship scam because they recognized the red flags such as the person was unable to meet in person or began asking for money Not all survey respondents ended the engagement immediately once they recognized the scam.
Know the Signs
• Talk of trust. Scammers may spend weeks or months building a relationship with their targets. They talk about trust and its importance. This often is the first step toward asking you for money.
•Unsolicited messages. If anyone reaches out to you unexpectedly, take time to verify the person and the offer. The Financial Industry Regulatory Authority’s (FINRA) BrokerCheck tool allows you to verify brokers.
• Promises of financial rewards with little or no risk.If the person guarantees investment returns with zero risk, it’s a scam.
• Offers to introduce you to cryptocurrency.If the person encourages you to take advantage of an investment opportunity such as buying cryptocurrency, take this as a huge red flag.
• Insist on paying in crypto. If they insist on paying you in crypto and ask you to start an account, it’s probably a scam.
• In a hurry to get off the site. Scammers will try very quickly to get you to communicate through email, messenger, or phone.
• It’s all moving fast. Early in the trust-building phase, scammers speak of a future together and may tell you they love you. They often say they’ve never felt this way before.
• They are never able to meet. Be wary of someone who always has an excuse to postpone a meeting such as saying they are traveling, live overseas, or are in the military.
• Using suspect language. If the person you are communicating with claims to be from your hometown but has poor spelling or grammar, uses overly flowery language, or uses phrases that don’t make sense, that’s a red flag.
Report a scam, even if you haven’t lost money, to BBB’s Scam Tracker.