The Financial Conduct Authority (FCA) has urged UK banks to take stronger action against romance scams, following a 9% rise in reported cases last year. According to the FCA’s latest review, reported losses from romance fraud reached £106 million in 2024/25, with individual cases resulting in significant harm—one victim reportedly lost more than £428,000. The FCA’s findings reveal that over 85% of romance scams originate online, predominantly via social media and dating platforms.
Key details from the review include:
- On average, victims lost £11,222 each to romance fraud.
- In 42% of reviewed cases, victims did not disclose the true reason for payment when asked by financial institutions.
- Typical scam patterns involve repeated payments; for example, one victim made 403 payments totalling over £72,000 within a year.
- Some cases involved international transfers, including attempts to send cryptocurrency to individuals claiming to be serving in foreign military roles.
The FCA observed that banks often missed warning signs and called for improved transaction monitoring, enhanced staff training, faster internal feedback, and post-incident care for affected customers. In certain situations, victims may be eligible for reimbursement of up to £85,000. Sheldon Mills, Executive Director of Consumers and Competition at the FCA, stated: “Romance fraud is a vicious crime. All too often it is the vulnerable that fall victim. The impact – financially and personally – can be devastating. 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.” Mills also advised: “We also all need to be on guard so we can protect ourselves and loved ones by recognising the romance fraud red flags.”
For further details on the FCA’s response, visit the official FCA press release.
| Aspect | Key Findings | Reference |
|---|---|---|
| Losses | £106m total, £11,222 average per victim | FCA |
| Main Platforms | 85% start via social media/dating sites | More on digital risks |
| Bank Response | Improved monitoring, support, possible reimbursement | Advice on common issues |
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