Online dating during the pandemic has now become even more complicated. Money lost to 2020 Romance Scams is up 51%. This is also now one more thing that your company's Anti-Money Laundering team needs to be on the look out for: Suspicious activity triggered by your online partner.
Romance scams—in which fraudsters pretend to be a love interest to bilk unassuming partners—have surged during the pandemic, compliance officers and regulators say. The scenario is putting some companies on high alert for suspicious financial transactions. Consumers need to be vigilant, she said, but so do companies that are bound by anti-money-laundering rules to report suspicious activity. One thing that can’t be fixed by an algorithm: human gullibility in the face of possible romance.