The Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of the Treasury is urging financial institutions to be vigilant against potential relationship investment scams. This advisory supports the #DatingOrDefrauding Campaign, a multiagency initiative led by the Commodity Futures Trading Commission to raise awareness about scams targeting Americans through texts, dating apps, and social media.
According to FinCEN, "losses from romance and confidence scams reported to the Federal Bureau of Investigation exceeded $650 million in 2023." The agency has previously released resources aimed at helping stakeholders identify and report suspicious activities indicative of these scams.
One such resource is an alert on a virtual currency investment scam known as "Pig Butchering," issued in September 2023. This scam involves criminals using fake identities and complex narratives to deceive victims into believing they can profit from supposed partnerships before defrauding them through virtual currency investments. These schemes are primarily operated by international criminal enterprises employing labor trafficking victims for outreach.
Another resource is an advisory on elder financial exploitation from June 2022, which outlines how romance scams are often used to commit elder fraud by exploiting older adults' trust for financial gain. A related analysis covering June 2022 to June 2023 found that online dating platforms frequently facilitate these scams, which may evolve into investment frauds once a connection is made.
Additionally, FinCEN's September 2024 analysis discusses mail theft-related check fraud schemes where scammers use romance scam victims as intermediaries or "money mules" to transfer stolen funds.
Financial institutions are reminded by FinCEN to adhere to specific Suspicious Activity Report (SAR) filing instructions outlined in its alerts and advisories. Such filings play a critical role in assisting law enforcement with detecting, investigating, and prosecuting relationship investment scams.
