With Valentine’s Day approaching, the Federal Trade Commission issued a consumer alert on romance scams.
Details: The FTC said romance scams have become more difficult to detect, with scammers asking their victims for money in ways that make it hard to get back, including via cryptocurrency transactions. A new article by Wired says stablecoins are the preferred payment method for scammers.
More: The Commodity Futures Trading Commission this week warned consumers that Valentine’s Day is an opportunity for criminals to use relationship investment scams, a form of fraud that costs Americans an estimated $10 billion each year.
ICBA View:
-
ICBA last summer expressed support for a Financial Crimes Enforcement Network action on crypto scams but said more needs to be done to curtail their rapid growth.
-
An Independent Banker magazine article says community bankers can use Valentine’s Day as an opportunity to educate their tellers and customers about the signs of romance scams.
-
In a statement for a 2024 congressional hearing on crypto-based romance confidence scams, ICBA said policymakers should prioritize national security, counter illicit finance uses of cryptocurrency, and improve information sharing with community banks.
Resources: ICBA blog posts spotlight the growth of these scams and the need for a policy response.