Voice of the Industry

The evolution of romantic scams and why people still fall victims to them

Wednesday 14 February 2024 09:54 CET | Editor: Alin Popa | Voice of the industry

Irina Ionescu shows us how, in the ever-evolving landscape of cyber deception, technology serves as the catalyst for romantic scams, intricately weaving false personas to exploit unsuspecting vulnerabilities. 

 

As technology evolves, so does the way in which people can become victims of Internet fraudsters. In a highly technologised era, where we use smartphones for everything, from online payments (to keep in touch with friends or relatives) to looking for potential partners, fraudsters can easily fish for personal information to either set up false accounts or steal our identity, but they can also prey on the gullible, asking for funds to support a life of crime.

In this paper, we will further discuss the definition of romantic scams, how scammers accelerated them with the help of GenAI tools, the ‘Yahoo boys’ phenomenon, and what are some of the ways through which people can protect themselves from scammers.

What are romantic scams?

A simple ‘hi’ on social media apps from an attractive stranger can pave the way to months or years of scheming, lying, manipulation, and extortion. While 90% of slightly tech-savvy Internet users won’t fall for scams, out of thousands of messages sent daily, there is still a chance for a few of them to take the bait, and this is when the dance begins.

Romantic scams happen when fraudsters create false online personas to engage with vulnerable people and establish trust, then ask for funds or other financial assets to feed the new relationship.

‘Seasoned’ scammers use their personal charisma and psychological tactics to gain their victim’s trust and then use it to manipulate them into sending money, all while creating a web of lies and complicated situations to avoid revealing their real identity. Both women and men fall into the traps of romantic scammers, with an average loss of USD 4,400 per individual in 2022 in the US alone, according to the FTC. The same report shows that almost 70,000 people reported a romantic scam in the US in 2022, and the losses reached a staggering USD 1.3 billion in total.

Unfortunately, more than 70% of all scams remain unreported, with most victims being ashamed of sharing their journey and intimate details of their lives with the authorities.

How romantic scams work – and the use of GenAI tools for fraud-related activities

Reports show that romance scammers prefer finding their victims online, through dating apps, pretending to be widowers or individuals working abroad but still longing for companionship. Around 40% of those who lost money due to romantic scams said the contact first started on social media apps, with Facebook and Instagram being the most common platforms used. Only 19% of the victims claimed they started a romantic relationship on dating websites or apps, but the scammers quickly switched to encrypted chatting apps such as Telegram and WhatsApp to avoid being easily detected.

The advance of new technologies such as generative artificial intelligence (GenAI) tools brings forward a new series of opportunities for fraudsters. In the past, they heavily relied on their interpersonal skills to establish a romantic connection with the victim, which implied learning about their culture, habits, and slang – and trying to emulate as precisely as possible the behaviour of a genuine person. This also implied being awake during the same hours as the victim and searching for online photos to create plausible synthetic identities.

GenAI tools such as language learning models (LLMs) help fraudsters with keeping conversations with multiple victims simultaneously and generating customised content to match each victim’s interests, which means that scammers have become more tech-savvy and are able to commit fraud faster.

The acceleration of romantic scams during and after the COVID-19 pandemic

The pandemic froze many sectors of the economy and most social activities worldwide, and the Internet played a significant role in keeping up with family and working. Even the healthcare industry took a giant leap forward and into the tech era, with regular checkups and medical advice being carried out online, via video call apps.

Dating was no different, as most online dating websites and apps saw a surge in new members signing in during the pandemic. With most people being isolated from friends, family, and any potential romantic interests for more than a year, they turned to dating apps not only to seek a new partner, but also to establish friendships. Highly popular Internet dating companies quickly adapted their apps to accommodate the new opportunities. It is also the example of Bumble who relaunched the BFF feature on its platform, which allowed users to build non-romantic relationships. Scammers seized the opportunity and created thousands of fake accounts, fishing into a pond of millions of potential victims worldwide.

The post-pandemic world of dating still resembles the one between 2020 and 2022, with millions of people still looking for online companionship, despite the opportunity to meet people in real life. This ensures a broad playground for scammers who even recruit other people, working across four groups – hosts, resources, IT, and money laundering – for Pig Butchering scams and other types of online fraud.

The ‘Yahoo boys’ phenomenon

Originating from Nigeria, the term is used to describe scammers, usually males in their early 20s, who resort to romantic scams as a means of living. The phenomenon is already so well embedded in the local culture that those who are making a living out of this are seen as role models by youngsters. Depending on their success, those who choose this lifestyle can make money quickly and afford a lavish lifestyle.

Poverty combined with poor education and the existence of criminal gangs are some of the factors that drive thousands of Nigerians to become Yahoo boys, a term that was used ever since the earlier days of the Internet, where scammers used to send emails to Yahoo addresses, claiming to be royal members or influent people who have recently come across a huge inheritance.

The playbook for the Yahoo boys romance scam is similar in almost all situations – it starts with creating, buying, or hacking weak social media accounts to pretend to be another person, usually an attractive American. Most opt for the identity of US soldiers, usually based abroad, to make up for the time difference and the inability to meet with victims in real life. As soon as the fake identity is created, romantic cons begin ‘bombing’, slang for sending friend requests and instant messages to hundreds of strangers. Out of those, 99% won’t reply but, occasionally, a person does, becoming a potential client for scammers.

How to prevent romantic scams and what to look out for to protect your identity online

Sending money to strangers online seems a little far-fetched in this economy, but there are people who still fall victims of romantic scammers, often losing thousands of dollars over the course of months or years. To make sure you or your loved ones stay away from online cons, here are some tips:

  • Don’t share personal details of yourself with strangers online. When trying to connect with people online, keeping private details to yourself is key. Do not share your bank account info, address, phone number, or answer any questions that give away personal details that could be used by fraudsters to hack your online accounts.

  • Don’t send or accept money online from people whom you haven’t met in real life, no matter how convincing their story is.

  • Use only trusted dating apps and websites, and be aware of the fake ones created with the purpose of stealing private information. Keep in mind that scammers can cause damage even via trusted dating apps, so it is best to keep communication through the apps alone – and not switch to encrypted texting apps such as Telegram or WhatsApp.

  • Trust your instincts and think twice before sending money online to anyone. If someone seems too good to be real, they sometimes are.

Finally, talking to your friends or family members might prove helpful when involving with someone online. Even if you develop true feelings about a person you haven’t met live yet, it is important to let your close ones know whom you’re talking to. A realistic and straightforward opinion can help you save money if you’re dealing with a romantic scammer.

 

This editorial is part of The Paypers' Fraud Prevention in Ecommerce Report 2023-2024, the ultimate source of knowledge that delves into the world of fraud prevention, revealing the most effective security methods for companies to stay one step away from bad actors and secure their businesses. 

 

About Irina Ionescu

Irina is a Senior Editor at The Paypers, primarily specialising in online payments and fraud prevention. She has a Ph.D. in Economics and a strong economic academic background, with interests in fraud prevention, chargebacks, fintech, ecommerce, and online payments. You can reach out to her via LinkedIn or email at irina@thepaypers.com.


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Keywords: cybercrime, romantic scam, financial crime, data protection, online fraud, fraud detection, fraud management, fraud prevention, ecommerce, artificial intelligence, generative AI, LLM
Categories: Fraud & Financial Crime
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Countries: World
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Fraud & Financial Crime






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