With Valentine’s Day approaching, love is in the air.
And while getting hit by Cupid’s arrow can often feel new and exciting, it’s important to be wary of a fairy tale romance that turns out to be too good to be true.
Sweetheart or romance scams are on the rise, which involve scammers pursuing romantic relationships with their victims with the sole purpose of stealing their hard-earned money. According to the Federal Trade Commission, Americans lost nearly $550 million to sweetheart scams in 2021, up 80 percent from 2020.
At Community One Credit Union, we’re here to help you protect your finances and protect you from fraudsters who want to leave you and your credit union account broken-hearted.
Sweetheart scams overwhelmingly take place online, where scammers can manipulate information to make the situation appear much different than reality. And while perpetrators of sweetheart scams may have names and profile pictures attached to their accounts, that doesn’t necessarily mean they’re being truthful in how they’re presenting themselves.
Scammers often feature attractive photos on their profiles to lure you in, and usually move quickly and say all the right things to make their victims feel a sense of attachment right away. They typically give an excuse for not being able to meet in person and say they’re working in a profession that often requires traveling for work, such as the military, construction, or being an overseas student.
Once they establish a romantic and emotional connection with their victim, they’ll often ask for money to cover the cost of an unexpected emergency, such as a car repair, travel expenses, or a phone or internet bill to maintain the connection.
Scammers can start with a small financial ask and then continue to request more money gradually, or they can ask for a large sum right away and press for urgent action. They’ll often ask for payment through non-traditional methods, such as gift cards or wire transfers.
Always request to meet potential romantic matches in person in a public place or via video, especially before sharing any personal or financial information. If the person refuses, especially multiple times, you’ll likely know something is fishy.
A good rule of thumb is that if something feels too good to be true, it usually is. You can run the situation by a friend or loved one and get their advice. You can also search for their name and “scam” online to see if any results appear, or run a reverse image search to determine the origin of their profile picture.
Even if the person you’re talking to online is pressuring you or sharing a sympathetic story, you should never feel pressured to send money or share your personal financial information. If the person you’ve connected with is in it for the right reasons, they’ll never pressure you to give them money.
If you’ve already sent money or someone has your financial information, be sure to inform your credit union and any other financial institution right away and shut off the funds to the would-be scammer.
In recent years, fraudsters have increasingly targeted seniors for sweetheart scams due to factors ranging from robust retirement accounts to a higher likelihood of living alone. According to the FBI, 6,700 people over the age of 60 lost more than $350 million to sweetheart scams in 2023.
If you’re a senior and feel like you may be a victim of a sweetheart scam, contact a friend, loved one, or your financial institution right away and cut off all contact with the suspected scammer.
If you have questions about your financial well-being or if something doesn’t feel quite right, give us a call or visit a local branch today. We’re here to help make sure you and your hard-earned money are well protected.
Protect your heart this Valentine’s Day — and your money.
We’re always here when you need us. ❤️
xoxo Community One Credit Union
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Complete the Scam Smart Challenge for a chance to win $90 each month in 2026.+
*NO PURCHASE NECESSARY. Membership required. Open to members in good standing, age 18 or older. Premium gifts available while supplies last & given upon completion of credit evaluation. Credit evaluation does not guarantee loan approval or savings. Premium gifts vary by month. **NO PURCHASE NECESSARY. Membership required. Open to members in good standing, age 18 or older. To be entered, member must allow a credit evaluation and close on a loan with the credit union during the promotion period. Allowing a credit evaluation does not guarantee loan approval; all loans are subject to credit approval and underwriting criteria. One (1) $900 cash prize will be awarded in June and one (1) $900 cash prize in December via random drawing from all eligible entries received during the applicable period. Odds of winning depend on the number of eligible entries received. Limit one (1) entry per member per drawing period. Winners will be notified directly. Cash prize will be deposited into the winner’s credit union account. Winner is responsible for all applicable federal, state, and local taxes. IRS Form 1099-MISC will be issued if required by law. This promotion is void where prohibited by law and is subject to change or termination at any time. Federally insured by NCUA. +NO PURCHASE NECESSARY. Membership required. Open to members in good standing, age 18 or older. Correct answers required. One entry per member per month. Monthly $90 prize awarded by random drawing each month in 2026. Membership eligibility applies. Visit www.c1cu.com for complete rules.
We want you to be aware of recent & widespread scams that have been brought to our attention. Members have reported receiving phone calls from someone saying they are with the Community One Credit Union Fraud Department. This solicitation can also come in the form of email or text.
Please be aware that Community One Credit Union will NEVER call (text or email) & ask you to verify a transaction, ask for your account number and/or PIN, debit or credit card, social security number or online access information in relation to your C1CU accounts.
If you should receive a text on your cell phone or a phone call/email with this type of information, DO NOT call the number back, DO NOT click on the link or give anyone your personal financial information and report it to our office at 330-305-3050 immediately.
Always take the time to consider what a caller is asking of you. Pausing to think for just a moment can prevent someone from using your information to take your money.
We have listed a few articles relating to fraud and identity theft below. Thank you for helping us protect your accounts.
https://www.cantonrep.com/story/money/2024/02/13/woman-loses-1-million-dating-scam/72487113007/
https://www.cnn.com/interactive/2023/12/asia/chinese-scam-operations-american-victims-intl-hnk-dst/
New York (CNN) — Payment apps like PayPal and Venmo might be convenient, but they’re not banks — and a federal financial services watchdog is worried that too many consumers are treating them as such.
Some consumers are using services like PayPal, Venmo, Cash App and Apple Pay for direct deposit of paychecks, or simply storing lots of cash in them. But the Consumer Financial Protection Bureau wants people to know they don’t have the same protections as a bank or credit union.
CFPB Director Rohit Chopra warned in a Thursday statement that payment services like PayPal, Venmo, Cash App and Apple Pay “are increasingly used as substitutes for a traditional bank or credit union account but lack the same protections to ensure that funds are safe.”
More than three-quarters of US adults have used at least one payment app, the agency said.
The watchdog released the comments in the wake of high profile bank failures like Silicon Valley Bank and Signature Bank. Their customers were made whole because account holders at federally insured financial institutions are guaranteed to get back up to $250,000 per account if the bank fails. (In the case of those two banks, the FDIC even abolished the limit, covering all deposits.)
Payment apps, however, are not federally insured on the institution level. If one of those companies were to go under, then, customers could lose their funds.
There are billions of dollars at risk for consumers as a result of payment apps encouraging customers to store funds rather than just make transactions, said the CFPB in its report. These apps are also not immune to the same type of panic-based bank run that closed down Silicon Valley Bank and others recently, the agency added.
PayPal Holdings (PYPL), which owns both PayPal and Venmo, did not reply to a request for comment Friday. Neither did rival Block (SQ), which owns Cash App as well as payment system Square. But industry trade group, The Financial Technology Association, which represents both firms, defended the safety of the funds.
“Tens of millions of American consumers and small businesses rely on payment apps to better spend, manage, and send their money. These accounts are safe and transparent,” the group said in the statement. “FTA members provide clear and easy-to-understand terms in all their products and prioritize consumer protection every step of the way.”
Some money held in certain types of payment app accounts — PayPal Savings, for example — are indeed deposited in FDIC-member banks and thus would be protected. But much of the funds are held by the services themselves, without federal insurance.
Source: www.cnn.com
By Chris Isidore, CNN
Updated 1:58 PM EDT, Fri June 2, 2023
