Romance fraud in the UK resulted in victims losing over £106 million in the past financial year, with regulators highlighting that banks missed crucial opportunities to prevent these devastating scams. This crime not only inflicts financial harm but also causes profound emotional distress, as fraudsters exploit trust built through online relationships.
The scale of romance fraud is alarming, with City of London Police figures showing a 9% annual increase in reports and average losses of £11,222 per victim. Over £106 million was stolen in the 2024/25 financial year alone, underscoring the growing threat posed by these sophisticated schemes that target individuals seeking companionship through dating apps and social media.
One victim, Varun Yadav, a London banker, lost his entire life savings of £40,000 after being manipulated into investing in cryptocurrency by someone he met on a dating app. He ignored red flags due to emotional attachment and later felt immense shame, highlighting the psychological toll that often prevents victims from speaking out. His experience mirrors many others, where fraudsters build false relationships over months before exploiting victims financially.
The Financial Conduct Authority (FCA) found that banks sometimes failed to intervene effectively, with victims frequently not disclosing the true reason for payments. In a stark example, one individual made 403 payments over a year, resulting in losses exceeding £72,000, demonstrating the need for better detection and monitoring systems. The FCA’s review revealed that in nearly half of cases, victims withheld information when questioned by bank staff.
To combat this, the FCA has urged banks to enhance staff training, identify vulnerabilities early, and provide compassionate aftercare. Some institutions, like Santander, have dedicated teams that prevented an additional £3.5 million in losses in the first half of this year, showing that proactive measures can make a difference. Banks are expected to improve their systems to spot red flags and offer tailored support to those at risk.
Red flags for romance fraud include requests for money, suggestions for investments, and excuses for not meeting in person. Authorities recommend using image checkers to verify identities, being cautious with personal information, and discussing concerns with friends or family to break the fraudster’s hold. The Metropolitan Police has launched campaigns to raise awareness, sharing real-life stories to educate the public.
Looking ahead, increased collaboration between financial firms, tech platforms, and law enforcement is essential to protect consumers. Victims are encouraged to report incidents promptly to seek support and potentially recover funds, emphasizing that openness can help prevent further harm. As romance fraud evolves, ongoing efforts aim to hold perpetrators accountable and reduce the devastating impact on individuals and communities.