Romance scam

Spec sheet // Glossary // ROMANCE SCAM
Glossary / R / Romance scam
Glossary · AML

Romance scam

Also called romance fraud, sweetheart scam

Definition

A romance scam is a fraud in which a criminal builds a fake romantic relationship, usually online, to win a victim's trust and then persuade them to send money. Requests come as emergencies, travel costs or investments. Because the victim authorises the payments, romance scams are a form of authorised push payment fraud.

CONTACTTRUSTREQUESTPAYMENT
Fig. 1 · Romance scam
PSR SD20 and SD19 · PS(A)R 2024 · Fraud Act 2006, section 2
Key rulesPSR SD20 and SD19 · PS(A)R 2024 · Fraud Act 2006, section 2
Applies toPayment firms sending and receiving Faster Payments
RegionsGlobal · UK
01

How it works

Fraudsters create fake profiles on dating sites, social media or messaging apps, often using stolen photos and a story that explains why they cannot meet, such as military service or work overseas. They contact the victim daily for weeks or months to build trust. Once the relationship feels real, they ask for money, starting small and escalating, and coach the victim on what to tell the bank.

Banks see romance scams as repeated payments to new payees, often overseas or to crypto exchanges, from customers with no history of such transfers. Funds usually land in money mule accounts and are moved on quickly. Controls include payment warnings, in-app questions, delaying suspicious payments and branch staff interventions. In the UK, victims of Faster Payments scams can claim reimbursement under PSR rules.

Step 1ContactA fake profile reaches the victim online.
Step 2GroomDaily contact builds trust and emotional dependence.
Step 3RequestThe fraudster asks for money for an emergency or investment.
Step 4PayThe victim sends funds, often repeatedly, to mule accounts.
Step 5InterveneThe bank questions, delays or stops payments and supports the victim.
02

The rules

UK · 7 October 2024PSR SD20 and SD19Payment Systems Regulator Specific Direction 20 and Specific Direction 19, Faster Payments APP scams reimbursement

Requires reimbursement of in-scope APP scam victims, including romance scam victims, up to £85,000, with costs split between sending and receiving firms.

Payment firms sending and receiving Faster Payments
UK · 30 October 2024PS(A)R 2024Payment Services (Amendment) Regulations 2024 (SI 2024/1013)

Allows a firm to delay an outbound payment by up to four business days where it has reasonable grounds to suspect fraud.

UK payment service providers
UK · 15 January 2007Fraud Act 2006, section 2Fraud Act 2006, section 2, fraud by false representation

Makes it an offence to dishonestly make a false representation intending to make a gain or cause a loss, which covers lies told to obtain money.

Any person in England, Wales and Northern Ireland
03

Common questions

Do banks refund romance scam victims?

In the UK, victims of romance scams paid by Faster Payments can claim reimbursement under PSR rules introduced on 7 October 2024, up to the set limit, unless the firm shows gross negligence or the claim falls outside scope.

What are the warning signs of a romance scam?

A partner met online who avoids video calls or meeting, professes strong feelings quickly, has a story of working abroad and asks for money, gift cards or crypto, often urging secrecy.

How are romance scams linked to money laundering?

Victims' payments are sent to money mule accounts and moved on in layers. Some victims are also persuaded to receive and pass on funds, turning them into mules themselves.