You’ve been living alone for a long time, hoping one day for some companionship. And then, just like that, you find the person of your dreams on a dating site. Weeks turn into months as you get to know each other, talking over telephone calls and emails, exchanging romantic messages and photos. They live abroad, so you haven’t met up in real life yet.
But then their demeanour starts to change. They’ve run into some hard times, they explain, and you’re all too sympathetic to their plight. They tell you that they’re behind on their rent and are scared of being evicted, and you jump at the chance to help them - what does a few hundred pounds matter if it means that they’ll be happy?
More time goes by, and after a few more times helping them with the rent, they tell you they want to meet. Of course this is what you want, too, but there’s a problem - they can’t afford plane tickets. So you agree to cough up the cash - but you can’t afford the tickets either. So you go to the bank, take out a loan, and send them the plane fare. Everything is fine for a while, but then they need more money…
Does the above sound familiar at all? You may have read about, or know someone who has fallen for a romance scam. Unfortunately these kinds of romance scams are all too common, and many vulnerable people fall for the social manipulation of fraudsters. In a typical scam, the fraudster will be patient, spending a long time building up trust with their victim by using doctored or stolen photos and sob stories before asking for any money - and typically, the longer the time between the date of first contact and the date of the first financial transfer, the higher the amount of money handed over.
How can romance scams be bad for businesses?
Romance scams aren’t just bad for individuals, they can also negatively impact businesses. If the scammer finds out that the victim is an employee of a company, they can use their relationship with the victim to steal company funds or confidential data.
How to protect your business and employees from romance scams
There are several signs that an employee is being scammed. Some behavioural traits they may display include:
- irritability
- suspiciousness
- defensiveness
You should educate your employees on different types of fraud, including romance scams and how they can affect them and the business. You should also have strict financial controls in place, making sure that whoever initiates a business payment is not the same as the person who authorised it - this is called the “four eyes” method, and should act as a deterrent to embezzlement.
If you, a colleague or friend/relative has been impacted by a romance scam, you can report it to the police. If you prefer to stay anonymous, you can send information to Scamalytics (such as images, names and details of potential romance scammers).
Worried about cyber-crime?
When it comes to cyber-crime, many SMEs don’t have sufficient cyber insurance. But the reality is, the risk of cyber-crime to your business far outweighs many other risks that you would cover for without a second thought. It’s time to get real about the risk of cyber-crime. Speak to your usual Towergate advisor or email TIB@towergate.co.uk to find out more.
About the author
Alison Wild BCom (Hons), FMAAT, MATT, Taxation Technician is a highly respected industry professional who has been working with and advising SMEs in areas including tax, pensions, insurance and marketing for over 25 years. She is a Fellow member of the Association of Accounting Technicians (AAT) and Association of Tax Technicians (ATT) and also has 20 years' experience as a residential landlord.
Sources
- natwest.com/business/insights/technology/fraud/how-romance-scams-can-threaten-your-business
- surrey.police.uk/romancefraud
Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.
