UK Romance Fraud Jumps 9% as False Affections Cost Investors £106 Million

Romance fraud in the UK reached £106 million in losses last year, with reports up 9%, according to a new regulatory review. Scammers exploit online relationships, manipulating victims into sending money, while banks often fail to intervene.

Romance fraud has quietly become one of the fastest-growing forms of financial crime in the UK, exploiting emotional vulnerability to drain life savings. A new regulatory review reveals how criminals manipulate victims over weeks or months, bypassing banking safeguards and leaving customers emotionally traumatized and financially exposed.

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Survey of Banks Exposes Major Weaknesses

The review examined six major and challenger firms to assess how they detect and prevent romance fraud and how they treat victims. Although some banks demonstrated strong interventions and victim care, results were inconsistent across the industry.

Fraudsters used social media and dating platforms in 85% of reviewed cases. They built trust through emotional manipulation before making financial requests, often starting with low-value payments to avoid detection.

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Monitoring systems sometimes flagged unusual behavior, such as repeated payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term to a new beneficiary or sudden cryptocurrency transfers. In another case, a flagged cryptocurrency transfer led to the uncovering of coercion by a fraudster.

However, large gaps remain. Critics say the absence of consistent system calibration leaves customers at unnecessary risk. In one case, a firm failed to detect six overseas transfers totaling £131,000 despite the customer having no history of sending money abroad. Another victim made 403 payments over a year, losing £72,000 without intervention.

Banks relying heavily on scripted customer interactions reportedly struggled to uncover fraud. Victims influenced by social engineering frequently concealed the truth. In 42% of cases, they provided false stories or fabricated documents under a fraudster's instruction.

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Others failed to act on clear safeguarding concerns. Some did not escalate cases even when customers showed signs of emotional distress or coercion. In one example, police were not contacted despite a victim reporting violent threats from a fraudster.

Education Remains Patchy Despite Rising Risk

Banks that performed well used vulnerability markers on accounts, regular welfare checks, and temporary account restrictions to prevent re-victimization. However, 15% of reviewed cases involved customers previously targeted by fraud, suggesting weaknesses in ongoing protection.

Most firms ran fraud awareness campaigns, but the impact varied. Some used well-designed app features and educational modules, while others relied on static website warnings that failed to reach at-risk customers.

The review concludes that firms must combine robust monitoring with trained staff capable of holding meaningful customer conversations. Better early intervention, data-sharing between banks, and targeted safeguards for vulnerable customers are key priorities.

Romance fraud is expected to increase further as scammers exploit AI tools and private messaging platforms. The regulator says a coordinated response between firms, law enforcement, and government is essential to reduce harm.