Every November in the USA, there is a week of education and awareness about fraud. AARS is a dedicated supporter of International Fraud Awareness Week, hosted by the Association of Certified Fraud Examiners (ACFE).
Fraud causes billions of dollars in damage to companies, governments, and individuals each year. Additionally, fraud can dramatically affect the quality of life of its victims—and the employees of its victims—resulting in job losses, the loss of savings and investments, weakened trust in public institutions, and a significant strain on resources.
A prominent part of online fraud is romance scams. In this article, Celebrus shares with banks how they can help protect their customers from romance scams. They report that “Romance scams are being used at an alarming rate to dupe banks, financial institutions, and customers out of money. According to the Federal Trade Commission, nearly 70,000 American consumers reported a romance scam in 2022, with losses totaling $1.3 Billion and averaging $4,400 per victim.”
The article says that it is indeed difficult for banking systems to catch romance scammer in their tracks. “While banks have traditionally relied on awareness and education programs to protect customers from such threats, these strategies aren’t always effective. Fraud tactics are evolving, and scammers leverage new tools like Generative AI to create simulated profiles. Not only does this make it faster and easier to build fake personas, they’re also more convincing. Meanwhile, customers spend more time online, and transferring money from one account to another has never been easier. It’s a perfect storm for romance scammers.”
International Fraud Awareness Week Shines a Light on the Data
Central Bank understands that many romance scams are never reported. Victim shaming is also prominent in response to this crime as well.
“Romance scams are one of the most common scams we encounter at Central Bank, and we’ve seen customers lose thousands of dollars before realizing it was a scam. However, there are some very typical signs of a romance scammer. “
According to recent data from the Federal Trade Commission (FTC), in 2022, nearly 70,000 people reported a romance scam, resulting in a total reported loss of approximately $1.3 billion in the United States alone. The median reported loss per victim was around $4,400. Fraud Awareness Week brings this kind of data into the limelight.
As productive, trusted citizens, we hate to contemplate the extent of international fraud. Educating ourselves helps us recognize when we are being targeted. That is why everyone needs to get involved this week. Sharing the information and talking about what you’ve seen or read helps others be more alert to fraudulent signs. We cannot depend on our “street smarts”; these criminals are always one step ahead and ready to pounce on any scheme they feel will bring in a dollar. These are just some reasons International Fraud Awareness Week is so significant.
Together, We Can Fight Fraud
No one wants to fall victim to fraud, and we certainly don’t want to watch our loved ones fall victim to fraud; therefore, it is our duty to help pass the word about fraud and give others the knowledge that helps them stay safe.
We are grateful for International Fraud Awareness Week, which heightens awareness of romance scams. AARS stands with financial institutions nationwide that actively engage in helping their customers avoid becoming victims. We make a difference together, but much more must be done. We need you, too!
