Romance Scams Cost Americans $697.3M Last Year – Source: www.infosecurity-magazine.com

Nearly 59,000 Americans have fallen victim to romance scams in 2024, losing an estimated $697.3m.

According to a new report from Comparitech, while reported cases dropped by 6% compared to 2023, the financial toll remains staggering.

Romance scams, which often involve emotional manipulation, are now increasingly tied to cryptocurrency and investment fraud schemes, where victims are lured into transferring funds under the guise of love and financial opportunities.

According to the report, Arizona had the highest rate of scams per 100,000 residents while California led in total losses with $104.8m from 6687 cases.

Emerging Trends: The Double-Barreled Scam

The report also reveals a growing trend of “double-barreled” scams. In these, fraudsters initially pose as romantic partners, then persuade victims to invest in fake cryptocurrency schemes. 

According to the Internet Crime Complaint Center (IC3), romance scams accounted for $215.8m in cryptocurrency-related losses in 2023.

Generative AI is further enhancing these scams, enabling fraudsters to create fake profiles, write convincing messages and generate realistic images to manipulate victims more effectively.

Read more on combating romance scams and protecting consumers: How to Protect Yourself from Rising Romance Investment Scams

Despite these alarming figures, the report suggests romance scams are vastly underreported. A survey by AARP estimated that 4% of Americans have fallen victim to these scams, equating to over 13 million individuals. Yet only a fraction of these cases – about 3.6% – are officially reported.

Comparitech estimates the cumulative financial damage from romance scams could exceed $535b.

Staying Safe Online

Experts urge vigilance to avoid falling prey to these schemes. Common red flags include requests to move conversations off dating platforms, vague personal information or financial pleas.

To protect themselves, individuals should avoid sharing personal details with strangers and consult trusted friends or family before making financial decisions.