The Financial Conduct Authority (FCA) has called on banks and other payment firms to improve their measures to protect consumers against romance fraud.
In its romance fraud review, the regulator set out proposals including better detection and monitoring systems, staff training, early identification of signs of vulnerability, as well as compassionate aftercare.
The FCA found examples of banks going to significant lengths to protect those at risk of romance fraud, but also uncovered missed opportunities to prevent these scams, which cost victims £106m last year. One of the cases that the FCA reviewed involved a victim losing more than £428,000.
Romance fraud is a growing financial crime, with cases rising by 9% last year. The type of scam sees victims deceived into sending money to fraudsters who engineer false romantic relationships or friendships.
Over eight in 10 cases (85%) start online, particularly through social media and dating websites, which the FCA said suggested shows that platforms have a “critical role” to play in preventing fraud and reducing harm.
Executive director of enforcement and market oversight at the FCA, Steve Smart, described romance fraud as a “vicious crime”.
“All too often it is the vulnerable that fall victim,” Smart said. “The impact – financially and personally – can be devastating.”
The FCA said it had observed firms providing a high level of support, occasionally exceeding its expectations through compassionate and tailored engagement. However, the regulator also warned that this “wasn't consistent across all firms”.
It suggested that intervention and prevention can be made difficult for firms because victims may be “under the spell” of a fraudster, and therefore reluctant to accept they are being defrauded. In over two in five (42%) of the cases the FCA reviewed, victims did not disclose the true reason for making a payment when asked.
“We recognise the challenge banks and payment firms have in combating this complex crime and this review aims to help them stay one step ahead of the criminals,” added Smart.
“We also all need to be on guard so we can protect ourselves and loved ones by recognising the romance fraud red flags.”
Latest News
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories