From CNBC:

The banking industry seeks help from the federal government and social media companies to combat a rise in online romance scams, which cost Americans billions of dollars annually. Officials urge social media companies to be more proactive in taking down perpetrators and governments to enact regulatory changes that allow financial institutions to protect at-risk customers. Banks generally don’t reimburse victims, as it could attract more scammers.

Scammers pose as attractive partners on social media, using avatars to connect with potential American victims, with organized criminal gangs behind the scams. Victims, often lonely and willing to engage online, can be financially drained after falling for a psychological relationship developed through hours of texting. Social media companies need to take greater action, as instances of fraud amount to billions of dollars annually, with unreported losses potentially totaling tens of billions of dollars.

The emotional impact of romance scams can be devastating, leading to the loss of marriages, careers, and drastic financial changes. Deputy district attorney Erin West estimates $30 to $50 billion was lost to romance scams in 2022. Victims rarely report their losses, making it challenging to assess the full scale of the emotional and financial wreckage caused by these scams. Law enforcement and banking officials stress the importance of raising awareness about the psychological manipulation behind these crimes.



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