Valentine’s Day, COVID-19 pandemic creating ‘perfect storm’ for scams, USAA fraud expert says
Valentine’s Day offers a particularly ripe opportunity for romance scams this year, according to one San Antonio expert.
The annual celebration of love and the COVID-19 pandemic are creating a “perfect storm” for such scams, said Stacey Nash, a senior vice president overseeing bank fraud at USAA.
Some Americans are unemployed and in desperate financial straits, while others are more susceptible to cons because they’re feeling isolated and want to make connections online. The holiday could have devastating effects for those who fall victim to fraud.
“Everybody loves a good love story and unfortunately criminals actually take advantage of that,” Nash said.
READ ALSO: ‘I’m not a cat’: West Texas attorney’s Zoom court mishap goes viral
A decade ago, scams involving “Nigerian princes” were common, Nash recalled. Now, both organized crime rings and individuals are creating profiles on dating sites and apps.
The scammers use fake pictures and stories to build trust and entwine victims in relationships over time. Then, typically right before the pair are supposed to meet in person, the fraudster claims to need money for a medical expense or plane ticket.
Victims will wire money, pay them with gift cards, or even share their online bank information, Nash said. Banks work with law enforcement to recover the funds, but the money is “pretty much a lost cause” if victims sent money willingly and do not report the transaction until weeks later.
There’s a better chance of recovering the funds from the scammer’s account — or stopping the wire transfer — if banks and law enforcement are notified right away. USAA has built cases with police that have led to prosecutions for romance fraudsters.
The Federal Bureau of Investigation’s San Antonio office noted Wednesday that fraud or attempted fraud can be reported to the agency.
In 2019, Americans lost $201 million to romance scams, the costliest scam reported to the Federal Trade Commission that year. Nash noted the figure likely does not reflect the true total because people are embarrassed to report being conned.
“I want people to know not to be ashamed, not to be afraid to come forward,” Nash said. “Unfortunately, this is more common than we’d like and law enforcement is very supportive.”
Romance scams can target members of the military, who are travelling and used to long-distance relationships. They also use service member’s images for fake profiles, capitalizing on “the respect and the automatic trust that comes from a service member’s profile,” Nash said.
Fraudsters, ever opportunistic, have employed the 2020 Census and COVID-19 vaccines to separate victims from their cash. Now they’re turning their attention to Valentine’s Day.
People seeking love online should make sure they’re talking to the right person by using FaceTime or Zoom, Nash offered. She doesn’t want to create an environment where nobody trusts each other, but emphasized the dangers of wiring funds or giving access to bank accounts.
“Don’t send money until you’re about to walk down the aisle,” Nash said.