Add thelocalreport.in As A Trusted Source
Banks have sometimes missed key opportunities to intervene in romance scams financial conduct authority Even one victim was defrauded of more than £72,000 through 403 payments in one year, the (FCA) has revealed.
While the FCA acknowledged that some banks are going to great lengths to protect vulnerable people romance fraudThe regulator also highlighted examples where opportunities to prevent these devastating scams were missed.
The scale of the problem is clear, with City of London Police figures showing that more than £106 million was lost to romance fraud in the UK during the 2024/25 financial year. The report found a 9 per cent annual increase, with each victim typically losing £11,222.
Victims are tricked into sending money fraudsters Those who create false romantic relationships or friendships.
The regulator said more than eight in 10 (85 percent) of cases investigated by the FCA began online, particularly through social media and dating websites, suggesting that platforms have an important role to play in preventing fraud and reducing harm.
Individual losses in confirmed romance fraud cases assessed by the FCA ranged from £100 to £428,249.
In its romance fraud review, the FCA sets out measures that banks and other payments companies can take to protect their customers – such as better detection and monitoring systems, staff training, early identification of signs of vulnerability, and compassionate care.
The regulator said companies may find it difficult to step in because victims may be reluctant to admit they are being defrauded. In almost half (42 per cent) of the cases reviewed by the FCA, victims did not provide the true reason for making the payment when asked.
The regulator said a key area of improvement is for companies to ensure that their staff are trained to recognize red flags and seriously scrutinize customers’ explanations. It added that this was not consistent across firms.
Get free fractional shares worth up to £100.
Capital at risk.
terms and Conditions apply.
Advertisement
Get free fractional shares worth up to £100.
Capital at risk.
terms and Conditions apply.
Advertisement
The regulator said that in 15 per cent of the cases reviewed, customers had previously been victims of fraud while banking with the same firm, highlighting the need for tailored security and continuous monitoring.
In over a quarter (25 percent) of cases, victims were forced to obtain money from a variety of sources, including taking out new loans, borrowing from friends and family, or liquidating their personal property.
The regulator identified cases where victims were left in a financially vulnerable position, including entering individual voluntary arrangements (IVAs).
In one case reviewed by the FCA, someone made 403 payments to a fraudster over the course of a year, resulting in a loss of more than £72,000.
In another case a victim told bank employees that they intended to send cryptocurrency payments to Iraq, claiming it was the only way it would be accepted by their “partner” in the military.
But it said many companies were providing a high level of support, sometimes exceeding the FCA’s expectations, through compassionate and tailored engagement.
Steve Smart, executive director of enforcement and market oversight at the FCA, said: “Romance fraud is a terrible crime. The victims are often vulnerable people. The impact – both financially and personally – can be devastating.
“We recognize the challenge banks and payments firms face in tackling this complex crime and this review aims to help them stay one step ahead of criminals.
“We also all need to remain vigilant so we can protect ourselves and loved ones by recognizing the danger signs of romance fraud.”
The FCA said it had seen positive examples of banks and payments firms moving forward. The regulator said one firm made 11 calls over a six-week period to support one victim, demonstrating a commitment to breaking the fraudster’s hold and restoring customer trust.
Another took care of the victim, who was recently divorced and supporting a child undergoing cancer treatment, it said. They started monitoring the victim’s account closely.
Highlighting the red flags of romance fraud, the FCA said alarm bells should be ringing if someone you’ve only had contact with online asks for money or suggests investing.
Asking for a lot of personal information is another potential warning sign.
People can use image checkers to see if the photo of the person they are talking to is taken from somewhere else.
People should report scams to the police and their bank or building society. Speaking to the account provider as soon as possible can help recoup any losses and prevent further payments from going out.
Michelle Pilsworth, head of fraud and complaints at Santendra UK, said: “Since January, we have seen almost £5.5 million stolen by scammers through romance fraud alone.
“These criminals will take time to build an emotional connection, before asking for money they will claim it is needed for food, medical treatment or an investment opportunity. We are also increasingly seeing them asking for gift cards.
“The lengths these scammers go to to earn consumer trust make these one of the most disturbing scams, leaving people feeling emotionally and financially vulnerable.
“At Symantec, we have a dedicated ‘Break the Spell’ team, a specialist fraud prevention unit that works with customers who are being manipulated by scammers, particularly in cases of romance scams.
“In the first six months of this year, the team stopped scammers from stealing a further £3.5 million from our customers.”
Liz Ziegler, fraud prevention director at Lloyds, said: “Taking advantage of people who are looking for love and companionship, fraudsters play on victims’ emotions when they may be at their most vulnerable.
“Although they may seem convincing, it is easy to spot some of the most obvious mistakes these scammers make. Always take a step back and ask yourself if what they are telling you sounds credible.
“Never, under any circumstances, send money to someone you met online. No good relationship starts that way, and in 2025 there are no legitimate reasons why someone can’t talk to you on the phone.
“If you have an elderly person in your life who is active online, make sure you educate them as much as possible about the risks and signs of potential fraudsters who may want to take advantage of them.”
Pat Hurley, ombudsman director at the Financial Ombudsman Service (FOS), said: “Over the past year, we have received hundreds of complaints about romance scams, which often involve scammers deceiving victims and gaining their trust by using various online platforms such as dating sites and gaming apps.
“It’s important that people understand there is no shame in being a victim of a romance scam. People don’t need to be embarrassed, help is available.”
Nick Sharp, deputy director of fraud at the National Crime Agency, said: “Romance fraud affects people not only financially, but also emotionally, with victims often finding it challenging to find that the person they thought they could trust is not who they thought.
“This makes it one of the most damaging types of fraud that victims have to face and it is even more important that all industries take every opportunity to identify such fraud and develop a victim-centred approach.”
Rocio Concha, which one? The Director of Policy and Advocacy said: “Banks and payment providers are on the frontline of protecting their customers from sending money to fraudsters, so it is good to see the FCA setting clear expectations for how these companies should protect their customers.
“The regulator should not hesitate to take action against any company found to be deficient.”
A UK Finance spokesperson said: “The banks are committed to protecting their customers from romance fraud – they invest significant sums of money and have teams trained to spot the warning signs.
“The FCA review highlights that a lot of good work has been done to keep people safe and prevent this terrible crime from happening.
“Companies will take on board the FCA’s findings and consider making the necessary improvements to keep more people safe.”
The spokesperson said: “We need social media and dating sites to take more action to address problems that start on their platforms.
“To stay safe, it’s important to be open and honest with your bank when it asks you questions about your payments.
“And we encourage everyone to follow the advice from the Take Five to Stop Fraud campaign and contact your bank if you are concerned about being a victim of fraud.”