Telecommunication fraud continues to grow exponentially, with reported losses in 2021 of $383 million in Canada¹ and a staggering $30 billion in the United States². There are several different types of scams that have contributed to these losses. One category that contributed over $547 million total losses in 2021 alone is known as "Friendship and Romance scams"³.

Although not solely a telecommunications scam, since victims are often found over social media, internet message boards, or games and apps, these scams still impact a wide range of victims, and it has never been more important to stay informed and vigilant.

What Are Friendship and Romance Scams?

Friendship and romance scams refer to scammers who create fake profiles on dating apps, social media platforms, or other online communities with the intention of forming an online relationship with their victims. After earning their trust, scammers will manufacture a scenario in which they need their victims to send them money, such as helping them pay medical expenses (for them or a family member), buy a plane ticket to visit them, pay for their visa, or help them pay fees to get them out of trouble. Usually, they'll ask for these payments to be made via wire transfers, gift cards, money transfer apps, cryptocurrency, or some other type of payment that makes it difficult for the victim to ever get their money back. Although the motivation is always the same, the details of these scams can take many different forms.

Some Common Examples

Romance

Scammers will create fake profiles on dating apps or social media sites and earn their victims' trust by chatting with them for hours, days, or in some cases, even years. When victims ask to meet in person, the scammer will always have some excuse of why they're unable to do so, such as traveling outside the country, working on an oil rig, or serving in the military. As trust continues to build, the scammer will eventually request the money, only to then ghost their victims after money has been sent or, in some cases, continue to ask for more.

Social Media Friendships

Scammers may create fake social media profiles that steal the identity of someone you know and go about asking for money from there. Alternatively, scammers may create social media accounts that looks trustworthy and share common traits and interests with their victims, such as living nearby or participating in similar hobbies. Be sure to examine friend requests closely and use caution when corresponding with anyone you meet online.

Internet Message Boards/Online Support Groups

No matter what your interests may be, these days there is an online community for just about anything, where people connect, bond, and find a sense of belonging over shared interests. Scammers often join these groups and earn the trust of these friendly internet social circles, only to then target certain members, asking them for money for some kind of emergency, including natural disasters, medical problems, or business crises. Particularly vulnerable are members of online support groups, who scammers bond with over shared pain and trauma. Because of the deeper nature of these connections, scammers try to manipulate their victims' empathy and compassion when requesting money from them.

Home Services

Scammers may pose online as contractors, landscapers, caretakers, housekeepers, or other home service professionals, and after chatting with their victims, ask for a high initial payment or upfront deposit before doing any actual work. Once the money is received, the scammer will ghost their victim, who will be unable to get their money back.

Investment Advice

Scammers may pose online as financial experts or advisors and lure you in by promising a huge return on your initial investment. The most common "investment" for this scam is cryptocurrency, which totaled losses of $139 million in 2021⁴.

Tips To Protect Yourself Against Friendship and Romance Scams

1. The number one red flag for these types of scams is being asked for money before having met your online companion in person. Be extremely cautious of this type of request, as it is almost always a scam.
2. Be particularly careful if money is being requested via untraceable payment methods, such as gift cards, cryptocurrency, or money transfer apps.
3. Be mindful of people striking up online connections with you (romantic or platonic), especially if they seem to be progressing a bit too fast. Be especially cautious if your new online companion is unwilling to meet up in person.
4. If you have any suspicions, do a reverse image search of the person's profile picture. It may be associated with another name or other inconsistent details, which are all telltale signs of a scam.
5. Search online for the type of job the person claims to have, followed by, "scammer?" Often past victims will post stories of similar scams, which should be a good indication that you are at risk of getting scammed yourself.
6. If you are a victim of any scam of this nature, report it to the app or website you are using, your national anti-fraud centre, and/or the police.

How SIPSTACK Fights Fraud

Using the latest technology and machine learning, SIPSTACK's systems authenticates all activity in real time against variables that affect your security. When a carrier implements SIPSTACK's Risk Rating Score, they are able to customize a threshold for calls to pass through, based on their specific needs. If one of these scammers sends you their phone number, SIPSTACK will be able to verify their level of safety. At SIPSTACK we take an active role in ensuring we are building a secure and connected tomorrow.Contact ustoday to learn how you can protect yourself from spam.

References

^{1 https://www.antifraudcentre-centreantifraude.ca/index-eng.htm
2 https://firstorion.com/2021-scam-call-trends/
3, 4 https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2022/02/reports-romance-scams-hit-record-highs-2021#_edn3}