Reported by Ellesheva Kissin

(Excerpt shared below. To read full report, go to: https://www.ft.com/content/40b2acf3-9c69-485b-9352-d117c42f41a3)

The UK’s financial watchdog has warned that banks are failing to prevent a growing threat of romance scams, with cases rising by almost 10 per cent last year.

The Financial Conduct Authority said on Friday that it had identified “multiple instances” where banks and payments companies had missed opportunities to identify suspicious transactions. 

Publishing a review that drew on the behaviour of six firms, it said cases were “growing in scale and complexity”. Victims in the UK were scammed out of £106mn in 2024 and one person lost more than £400,000.

In romance scams, victims are duped into fake romantic relationships or friendships, as the scammer plays on the individual’s emotions and psychology. After gaining their trust, the scammer will use a variety of excuses for why they cannot meet, until eventually concocting an elaborate story as to why they need money sent to them.