Romance scams cost consumers $1.14 billion last year. It's a 'more insidious' fraud, expert says

Cybercriminals are targeting wealth accounts by tapping into a victim's emotions.

So-called romance scams involve building a relationship and trust with the victim so that the target willingly provides access to their accounts or transfers money to the criminal, explained Tracy Kitten, the director of fraud and security at Javelin Strategy & Research, a financial research services firm.

Consumers lost $1.14 billion to romance scams in 2023, according to the Federal Trade Commission. Median losses per person amounted to $2,000, the highest reported losses for any form of imposter scam, the FTC found.

"Romance scams tend to be some of the more insidious because they prey on emotions," Kitten said. "These things happen in real life, these aren't just shows that we see on Netflix." 

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"What people need to realize is that people behind these types of scams could teach a master class in human behavior," said Theresa Payton, a former White House chief information officer who is now the CEO of cybersecurity firm Fortalice Solutions.

"They know the different emotional trigger points that we all have, and that's when they strike," Payton added.

Romance scammers trick their victims into thinking they're someone they're not. Over time, the criminal will develop a relationship with the victim, Kitten explained.

Once trust is established, the victim may be more easily convinced to send money, provide access to their bank accounts, and, in some cases, even launder funds for them, she said.

About 22% of surveyed financial