Banks ‘missed probabilities’ to stop romance fraud – as sufferer loses £72k

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Your assist makes all of the distinction. Learn extra Banks have generally missed essential alternatives to intervene in romance scams, the Monetary Conduct Authority (FCA) has revealed, at the same time as one sufferer was defrauded of greater than £72,000 by 403 funds over a 12 months.

Whereas the FCA acknowledged some banks going to vital lengths to guard these weak to romance fraud, the regulator additionally uncovered situations the place probabilities to stop these devastating scams had been missed.

The size of the issue is stark, with Metropolis of London Police figures revealing over £106m was misplaced to romance fraud within the UK throughout the 2024/25 monetary 12 months. Studies noticed a 9 per cent annual enhance, with victims usually shedding £11,222 every.

Victims are tricked into sending cash to fraudsters who create false romantic relationships or friendships.

Greater than eight in 10 (85 per cent) circumstances examined by the FCA began on-line, notably by social media and courting web sites, suggesting platforms have a crucial position to play in stopping fraud and lowering hurt, the regulator stated.

Particular person losses in confirmed romance fraud circumstances assessed by the FCA ranged from £100 to £428,249.

<img src="https://static.independent.co.uk/2025/02/14/08/06113110-27b8a44e-a639-4217-985a-1e840a40968d.jpg" srcset="https://static.independent.co.uk/2025/02/14/08/06113110-27b8a44e-a639-4217-985a-1e840a40968d.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/02/14/08/06113110-27b8a44e-a639-4217-985a-1e840a40968d.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="The Financial Conduct Authority (FCA) said it had seen examples of banks going to significant lengths to protect those at risk of romance fraud" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

The Monetary Conduct Authority (FCA) stated it had seen examples of banks going to vital lengths to guard these susceptible to romance fraud (Alamy/PA) In its romance fraud evaluation, the FCA set out measures that banks and different fee companies may take to guard their prospects – reminiscent of higher detection and monitoring programs, workers coaching, early identification of indicators of vulnerability, and compassionate aftercare.

The regulator stated companies can have issue stepping in as a result of victims could also be reluctant to just accept they're being defrauded. In almost half (42 per cent) of the circumstances the FCA reviewed, victims didn't disclose the true purpose for making a fee when requested.

A key space of enchancment is for companies to make sure their workers are skilled to identify crimson flags and critically probe buyer explanations, the regulator stated. It added that this was not constant throughout all companies.

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In 15 per cent of the circumstances reviewed, prospects had beforehand been victims of fraud whereas banking with the identical agency, highlighting the necessity for tailor-made protections and ongoing monitoring, the regulator stated.

In 1 / 4 (25 per cent) of circumstances, victims had been coerced into getting funds from varied sources, together with new loans, borrowing from family and friends or liquidating their private belongings.

The regulator recognized circumstances the place victims had been left in a financially weak scenario, with one getting into a person voluntary association (IVA).

<img src="https://static.independent.co.uk/2025/09/17/00/9281bf3a8d7d77374bfa6f301e5850cbY29udGVudHNlYXJjaGFwaSwxNzU4MTAxODc4-2.22516526.jpg" srcset="https://static.independent.co.uk/2025/09/17/00/9281bf3a8d7d77374bfa6f301e5850cbY29udGVudHNlYXJjaGFwaSwxNzU4MTAxODc4-2.22516526.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/09/17/00/9281bf3a8d7d77374bfa6f301e5850cbY29udGVudHNlYXJjaGFwaSwxNzU4MTAxODc4-2.22516526.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Romance scammers will often use certain occupations as excuses for why they cannot meet up in person" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

Romance scammers will typically use sure occupations as excuses for why they can't meet up in particular person (Dominic Lipinski/PA) In a single case within the FCA’s evaluation, somebody made 403 funds to a fraudster over the course of a 12 months, leading to losses of greater than £72,000.

One other case concerned a sufferer telling financial institution workers they supposed to ship cryptocurrency funds to Iraq, claiming it was the one methodology accepted by their “accomplice” within the navy.

But it surely stated many companies had been offering a excessive degree of assist, often exceeding the FCA’s expectations, by compassionate and tailor-made engagement.

Steve Sensible, govt director of enforcement and market oversight on the FCA, stated: “Romance fraud is a vicious crime. All too typically it's the weak that fall sufferer. The influence – financially and personally – might be devastating.

“We recognise the problem banks and fee companies have in combating this advanced crime and this evaluation goals to assist them keep one step forward of the criminals.

“We additionally all have to be on guard so we will defend ourselves and family members by recognising the romance fraud crimson flags.”

The FCA stated it noticed optimistic examples of banks and fee companies going above and past. One agency made 11 calls over a six-week interval to assist a sufferer, demonstrating a dedication to breaking the fraudster’s maintain and restoring buyer confidence, the regulator stated.

One other responded with care to a sufferer who had not too long ago divorced and was supporting a toddler present process most cancers therapy, it stated. They proceeded to carefully monitor the sufferer’s account.

Highlighting crimson flags of romance fraud, the FCA stated alarm bells ought to ring if an individual who you may have solely handled on-line asks for cash or suggests investments.

Asking for plenty of private info is one other potential warning signal.

Folks can use picture checkers to see if the picture of the particular person they imagine they're speaking to has been taken from elsewhere.

<img src="https://static.independent.co.uk/2022/05/11/10/e390aa7d3016b56772770cdea3dc033bY29udGVudHNlYXJjaGFwaSwxNjUyMzQ3NzA5-2.65208092.jpg" srcset="https://static.independent.co.uk/2022/05/11/10/e390aa7d3016b56772770cdea3dc033bY29udGVudHNlYXJjaGFwaSwxNjUyMzQ3NzA5-2.65208092.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2022/05/11/10/e390aa7d3016b56772770cdea3dc033bY29udGVudHNlYXJjaGFwaSwxNjUyMzQ3NzA5-2.65208092.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="In one case in the FCA’s review, someone made 403 payments to a fraudster over the course of a year, resulting in losses of more than £72,000" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

In a single case within the FCA’s evaluation, somebody made 403 funds to a fraudster over the course of a 12 months, leading to losses of greater than £72,000 (PA Wire) Folks ought to report scams to the police and their financial institution or constructing society. Talking to the account supplier as quickly as doable might assist it to claw again any losses and forestall additional funds going out.

Michelle Pilsworth, head of fraud and complaints, Santander UK, stated: “Since January, we’ve seen almost £5.5 million stolen by scammers by romance fraud alone.

“These criminals will make investments time in constructing an emotional connection, earlier than asking for cash they’ll declare is required for meals, medical therapy, or an funding alternative. We’re additionally more and more seeing them asking for present playing cards.

“The lengths these scammers go to, to earn a shopper’s belief, make these one of the vital distressing scams, leaving folks feeling emotional and financially weak.

“At Santander, we've got a devoted ‘break the spell’ group, a specialist fraud prevention unit that works with prospects who're being manipulated by scammers, notably in circumstances of romance scams.

“Within the first six months of this 12 months, the group stopped scammers stealing an extra £3.5 million from our prospects.”

Liz Ziegler, fraud prevention director, Lloyds, stated: “Making the most of people who find themselves on the lookout for love and companionship, fraudsters play with victims’ feelings once they could possibly be at their most weak.

“While they are often convincing, it’s simple to identify a number of the most evident errors these scammers could make. At all times take a step again and ask your self if what they're telling you sounds plausible.

“By no means in any circumstances, ship cash to somebody you’ve met on-line. No good relationship begins off on this manner, and there aren’t many legitimate causes in 2025 why somebody can’t communicate to you on the telephone.

“You probably have an older particular person in your life that's energetic on-line, be sure that to teach them as greatest you possibly can on the dangers and indicators of potential fraudsters seeking to benefit from them.”

<img src="https://static.independent.co.uk/2023/02/02/00/18182449-96a02c1b-9f47-43d2-be78-59eecf64ffc5.jpg" srcset="https://static.independent.co.uk/2023/02/02/00/18182449-96a02c1b-9f47-43d2-be78-59eecf64ffc5.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2023/02/02/00/18182449-96a02c1b-9f47-43d2-be78-59eecf64ffc5.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Victims are tricked into sending money to fraudsters who create false romantic relationships or friendships" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

Victims are tricked into sending cash to fraudsters who create false romantic relationships or friendships (iStock/PA) Pat Hurley, ombudsman director on the Monetary Ombudsman Service (FOS), stated: “Over the previous 12 months alone, we’ve acquired tons of of complaints about romance scams, typically involving scammers deceiving victims and gaining their belief utilizing completely different on-line platforms like courting websites and gaming apps.

“It’s essential that folks perceive that there is no such thing as a disgrace in falling sufferer to a romance rip-off. Folks don’t must really feel embarrassed, there's assist obtainable.”

Nick Sharp, deputy director for fraud on the Nationwide Crime Company, stated: “Romance fraud impacts folks not solely financially, but additionally emotionally, with victims typically discovering it difficult to ponder that somebody they thought they may belief was not what they thought.

“This makes it one of the vital dangerous varieties of fraud that victims face and all of the extra essential that every one industries take each alternative to determine such frauds and develop a victim-centred strategy.”

Rocio Concha, Which? director of coverage and advocacy, stated: “Banks and fee suppliers are on the entrance line to guard their prospects from sending cash to fraudsters, so it’s good to see the FCA setting out clear expectations for the way these companies ought to defend their prospects.

“The regulator should not hesitate to take motion in opposition to any companies falling quick.”

A UK Finance spokesperson stated: “Banks are dedicated to defending their prospects from romance fraud – they make investments vital sums and have groups which might be skilled to identify warning indicators.

“The FCA’s evaluation highlights that a whole lot of good work is finished to maintain folks secure and forestall this terrible crime from going down.

“Companies will tackle board the FCA’s findings and look to make any enhancements wanted to maintain much more folks secure.”

The spokesperson added: “We want social media and courting websites to take a lot better motion to deal with the issue that begins on their platforms.

“To remain secure, it’s essential to be open and sincere together with your financial institution once they ask you questions relating to your funds.

“And we encourage everybody to observe the recommendation of the Take 5 To Cease Fraud marketing campaign and speak to your financial institution in case you are involved about being a sufferer of fraud.”