Why in news?

In February, often called the "month of love," experts and authorities are warning about rising romance scams involving emotional manipulation, deceit, and financial fraud.

According to a Moody’s report, India ranked third globally in new romance scam profiles in 2024, accounting for 12% of the total, behind the US (38%) and Nigeria (14%).

Moody’s recorded 1,193 new scam-related entities, marking a 14% increase from 2023.

What’s in today’s article?

• Romance Scams
• Tech Companies' Response to Romance Scams
• Other Major Fraud Trends in Focus

Romance Scams

• Romance frauds typically occur through dating apps and social media, where scammers create fake online profiles to lure victims.
• According to the Indian Cyber Crime Coordination Centre (I4C), fraudsters gain trust and then demand money, gifts, bank details, or intimate content.
• These scams often pose a risk to victims’ personal safety, as criminals may belong to organized networks.
• Rise of Romance Scams During Covid-19
  • The Covid-19 pandemic saw a sharp increase in such scams, as fraudsters exploited people’s isolation and emotional vulnerability.
  • A technique called “love bombing”—where scammers excessively express affection to gain victims’ trust—was commonly used.
• Modus Operandi of Scammers
  • As per the FBI, scammers use fake identities to manipulate victims emotionally and financially.
  • Meta highlights that scammers often pose as attractive and successful individuals, using cold messages and fake stories to gain trust before requesting money or promoting fraudulent investments.
• Financial and Reputational Risks
  • Moody’s warns that money from romance scams, including sextortion, is often laundered through banks, exposing financial institutions to reputational damage and legal penalties.
  • Sextortion—which mainly targets teenage boys—involves extortion using fake profiles to solicit explicit content, later used to blackmail victims.
• Preventive Measures
  • Authorities advise people to avoid sending money or sharing sensitive personal information with strangers online and to be cautious about the details they share on social media.

Tech Companies' Response to Romance Scams

• Meta’s Measures Against Scammers
  • Meta, which owns Instagram, WhatsApp, and Facebook, is actively working to combat romance scams by:
    • Removing Malicious Accounts: Automated systems detect and eliminate fake profiles.
    • Safety Notices on Messenger: Alerts users when chatting with suspicious accounts, especially those based in other countries.
    • Teen Protection on Instagram: Testing safety nudges for teenagers to caution them about suspicious interactions.
    • Call Blocking on WhatsApp: Users can silence calls from unknown numbers to prevent scam-related contact.
• Match Group’s AI-Based Scam Prevention
  • The Match Group (which owns Tinder, Hinge, and OkCupid) is using AI tools to detect suspicious words and phrases to prevent fraud.
  • Key measures include:
    • In-App Warnings and Education: Pop-up alerts and educational features inform users about scams.
    • Collaboration with Law Enforcement: Working with cybercrime investigators to run awareness campaigns on identifying scam behaviors.
• Google’s Measures Against Online Fraud
  • Blocked 13.9 million installation attempts of harmful apps (as of January 31, 2025).
  • Protected 3.2 million devices, preventing over 309,000 unique fraudulent apps from being installed.
  • Partnered with I4C under DigiKavach and onboarded Google Pay onto the National Cybercrime Reporting Portal to enhance fraud investigations.

Other Major Fraud Trends in Focus

• Scammers are increasingly leveraging AI to improve both new and existing fraud techniques.
• Fake Donation & Travel Booking Scams
  • Fraudsters exploit major festivals like Diwali by setting up fake charities and offering fraudulent travel deals.
• AI-Generated Celebrity Investment Scams
  • Scammers use deepfake videos, fake news articles, and social media posts to promote fraudulent cryptocurrency and trading investments.
• Remote Access Tech Support Fraud
  • Posing as bank, tech support, or government officials, scammers create a sense of urgency to steal device access or sensitive data.
• Job Scams
  • Fraudsters lure job seekers with fake high-paying remote work or international job opportunities, often requiring upfront payments.
• Predatory Loan App Scams
  • Scammers target people in urgent financial need, offering quick loans with minimal paperwork but trapping them in high-interest repayment cycles.