£20.5 Million Lost as Romance Scams Rise By 15%

Romance scams or romance fraud fall under the wider umbrella of Authorised Push Payment (APP) fraud. They are often elaborate and convincing schemes undertaken by a scammer to groom their victim into believing they are in a genuine romantic relationship.

Victims are usually contacted online via dating apps and websites such as Tinder. Once a scammer has connected with a victim, they begin a ‘romantic relationship’ in which they build trust with that person over a period of months, in some cases even years. The scammer will then manipulate the victim into sending money or personal details that can be used to defraud them.

APP fraud happens quickly. Once the victim authorises a payment to someone they believe is genuine, the funds are transferred to the scammer. Once the scammer has received the money, it is usually moved into an overseas account, where it becomes untraceable. The scammer then disappears, leaving the victim both out of pocket and often heartbroken.

Dating apps can offer the perfect environment for scammers. Since most people using the apps are open and hoping for a connection, their guard is already down compared to for example, receiving a cold email or phone call.

So, how do you spot a scammer from a potential partner? Here are some red flags to look out for:

• Love bombing: The person you’re talking to insists you are their ‘soulmate’ or professes deep love within days or even hours.
• Insisting that you move the conversation off the dating app to an encrypted platform like WhatsApp or Telegram.
• They can’t meet you in person and always have an excuse.
• Their pictures look like professional headshots or are too polished. These may be taken from the internet or generated by AI.
• Their video calls are glitchy, their face looks unnatural, or they’re unable to turn their camera on because it is constantly ‘broken’.
• They have a ‘crisis’ and need you to transfer them money, or they have encouraged you to invest. This could include, but is not limited to, a sudden medical bill, a vet bill, or travel costs.

If you think you have been tricked into sending money to a scammer on a dating app and have lost money, you must report it as soon as possible to your bank, the police and Report Fraud.

From 7^th October 2024, UK banks are required to reimburse victims of APP fraud, regardless of the type, up to £85,000. Payment providers have a duty to reimburse victims within five business days, however, this period is extended to 35 days if an investigation is required.

To increase the likelihood of compensation, you must report the fraud straight away and within 13 months of it happening. It is not guaranteed that a bank will cover losses due to APP fraud where the money has already been moved to an untraceable overseas account and cannot be recovered.

If you have been a victim of a romance scam or a wider APP fraud and you are unhappy with your bank’s decision, you can take your case to the Financial Ombudsman Service (FOS). FOS is a free, independent and government-backed body that investigates disputes between consumers and financial institutions.

FOS can hold financial institutions accountable and, where necessary, provide a layer of protection for consumers. As APP fraud and online romance scams are on the rise, banks are under increased pressure to protect victims from losing money. Where they have failed to do this, FOS can make compensation awards.

Not all FOS claims are successful, which is why victims need to consider all available legal routes open to them, including:

• Civil recovery to trace and pursue stolen funds
• Claims against individuals who may have assisted or benefitted
• Strategic use of private prosecution alongside recovery action

While a guilty verdict can hold the offender to account, it does not resolve the practical issue of where the money has gone or whether it can be recovered.

Sarah Spruce, Legal Director at TLW Solicitors, comments:

“Seeing the latest figures on romance scams can be discouraging, however, if you know where to look, support is out there for victims. It is important to have the right information and guidance to navigate the process of recovering lost funds.

I encourage victims of romance fraud not to feel ashamed or embarrassed, and to report it as soon as possible. The statistics show that this can happen to anyone as technology and scams become more sophisticated.

If you or a loved one has lost out financially to a suspected scam, then get in touch with a member of my specialist team for a confidential and no-obligation discussion. We can then explore your options and whether you may be eligible to make a claim.”