FRAUD SQUAD
Monday, January 22nd, 2024
With the rise of online dating and social media, millions of people flock to digital platforms to find love. But from behind the protection of a computer screen, scammers exploit the most vulnerable people seeking romance and relationships, ultimately leaving the unsuspecting victim with a broken heart and an empty bank account.
The Scam: With the rise of online dating and social media, millions of people flock to digital platforms to find love. But from behind the protection of a computer screen, scammers exploit the most vulnerable people seeking romance and relationships, ultimately leaving the unsuspecting victim with a broken heart and an empty bank account. According to the Federal Trade Commission (FTC), nearly 70,000 cases of romance scams were reported, totaling a loss of $1.3 billion in 2022 alone.
Social media impersonation has become one of the most frequently used ways of perpetuating a romance scam, and it’s as easy as stealing a picture and personal information readily available on a public platform. The crime doesn’t end there – the fraudster then uses the stolen identity to create fake profiles and begins the hunt for the next victim for monetary gain. The criminal seeks out relationships through online platforms like dating apps or social media, earns the victim’s trust, and then, through various ways, gains access to their accounts or requests money. The most common method is to simply ask for money through wire transfers, gift cards, or cryptocurrency, but the FTC also reported sextortion or blackmail, account takeovers, and investment scams as other methods.
The Scheme: When Connie Rotolo (Oceanside, NY) lost her husband of 45 years in 2019, she found herself struggling to cope with unbearable grief and loneliness. Then, the pandemic hit in 2020, and the mandatory lockdown left her feeling more alone than ever. With the hope for a second chance at love and companionship, Rotolo turned to the popular dating site, Zoosk. The 67-year-old then created a profile on the dating app, but after just days of scrolling and swiping, she quickly found that she wasn’t suited for online dating. She abandoned her profile for a while but then unexpectedly received a message from a man who was supposedly a civil engineer working abroad and looking for a relationship. The man, who went by the name Andrew Deckert, claimed to also be from Long Island and began to shower Rotolo with messages of affection and adoration. Over the course of three months, they exchanged countless texts, where the charming conman would send her love letters and poems. The scammer promised her everything under the sun and beyond, and for a grieving, vulnerable widow, the relationship was “like a drug.” Although they had not met in person, the connection grew stronger through frequent communication, and at that point, Rotolo had completely fallen for the ruse.
It was at the three-month mark that “Andrew” began to confide in her about his dire `financial situation. The once romantic promises of a future filled with love and happiness soon turned into relentless requests for money. He even begged her to sell her house and send him the money. Rotolo initially ignored the requests but was alarmed by a terrifying text that compelled her to send the money. The fraudster claimed that his life and hers were in grave danger. He told her that she needed to send him money or else they would both be killed. “Andrew” then instructed her to wire money to five different companies in the United States. Within a month, Rotolo sent a total of $475,000 over five transactions – money that was left to her by her late husband.
She grew suspicious of “Andrew” and began to look into his profile and identity. Upon realizing she had fallen victim to a scam, she contacted the local police and hired a private investigator (PI). The scammer has continued to message Rotolo but what began as seemingly sincere promises to repay her soon became threats of violence when he realized she had contacted the authorities and was pursuing justice. The victim actually had to move from her home after an unknown man visited her at her house, warning her to stop the investigations. Rotolo has not yet recovered the money and currently works with a group online to warn others about the threat of romance scams.
Fraud Geek Explains
It’s heartbreaking to hear Ms. Rotolo’s story, but unfortunately, she is not alone. Many people fall victim to devastating romance scams, which have become increasingly common. According to the FTC, there’s been an 80% increase in romance scams since 2020. Rotolo’s experience is a classic example of a romance scam, and if she had been aware of the warning signs, she could have avoided it entirely.
Romance scams always begin with a fake profile created across social media platforms or dating sites. Scammers often steal pictures and personal details of real people online, so they seem legitimate. A potential victim who is suspicious of them could search for their online presence and find any publicly supplied information to confirm their identity – address, education, job, and other social media accounts which could reveal them as a scammer. Most people don’t even realize their identity is being used for these scams because although they are victims also, they aren’t the real target. The scammers carefully craft their online profiles to appear charming and trustworthy and use tactics such as flattery and emotional manipulation to gain their victim’s trust and exploit their vulnerabilities.
Anyone can fall victim to a romance scam, but the most common targets are women over the age of 50 who are recently widowed or divorced. These individuals tend to be more vulnerable to manipulation due to their emotional state and their desire for companionship. Individuals over the age of 50 are also less likely to be technologically savvy enough to do proper research to verify identity. Ms. Rotolo matched the typical victim profile for romance scams – she’s elderly and a recent widow, having joined Zoosk a mere 9 months after her husband’s death. Once a relationship has been established, the scammer will eventually ask for money, often by claiming to be in a dire financial situation or facing an emergency. They may ask for money to cover the cost of travel, medical bills, or other expenses. In some cases, they may threaten their victim with blackmail or violence if they do not comply with their demands.
So, how can people confidently pursue online dating without becoming a victim of romance scams? To protect yourself from these scams, be aware of the following red flags:
Fraud Geek’s Advice
Consumers can protect themselves while online dating by remembering the following:
If you believe you’ve been a victim of fraud, REPORT IT!
Financial Institutions: Keep Your Customers Protected:
The DefenseStorm Difference:
DefenseStorm approaches fraud differently by looking at both monetary and non-monetary transactions to catch fraud before funds leave the bank. Our GRID Active Fraud Prevention product would have flagged unusual patterns, such as the five large withdrawals Rotolo authorized within a month, which was inconsistent with normal activity. Our ability to monitor, detect, and alert on suspicious activity across all departments – including Originations, Online and Mobile banking, and Internal Fraud – through Employee Activity Monitoring allows the FI to stop fraudsters before funds leave the account.
Resources:
https[:]//www[.]nbcnewyork[.]com/news/local/the-hell-of-my-life-long-island-woman-loses-475k-in-online-dating-scam/4142619/
https[:]//longisland[.]news12[.]com/oceanside-woman-says-she-lost-475000-to-online-scammer-who-got-her-information-off-zoosk
https[:]//www[.]ftc[.]gov/news-events/news/press-releases/2023/02/new-ftc-data-reveals-top-lies-told[-]romance[-]scammers