SMFSC Warns of Rising Romance Fraud and Calls for Stronger Consumer Protection Measures

The San Marino Financial Standard Council (SMFSC) — a financial self-regulatory association dedicated to fostering a transparent, honest, and responsible financial environment — has issued a warning about the growing threat of romance fraud, following a 9% rise in reported cases over the past year.

Romance fraud occurs when criminals deceive victims into sending money by engineering false romantic relationships or friendships. SMFSC’s review highlights that over 85% of cases originate online, particularly through social media platforms and dating websites, underscoring the urgent need for greater digital vigilance and cross-sector cooperation.

“Romance fraud preys on trust and emotion,” the Council said.
“We must combine financial safeguards with empathy and education to prevent lasting harm.”

Digital Platforms Under Spotlight

The Council’s findings suggest that social media and online dating platforms have a critical role to play in preventing scams.
Fraudsters frequently exploit users’ personal information, emotional vulnerability, and online communication features to build credibility before requesting money, often under the guise of medical emergencies, investment opportunities, or travel costs.

SMFSC is therefore urging technology companies, financial institutions, and regulators to work together in detecting suspicious activity and improving information-sharing mechanisms to identify patterns of fraud earlier.

SMFSC’s Recommendations to Financial Firms

In its Romance Fraud Review, the SMFSC sets out a series of practical steps that banks and payment firms can adopt to protect their customers more effectively:

• Enhanced monitoring and detection systems to flag unusual payment behaviours associated with social manipulation.
  
• Staff training programmes to help frontline employees recognise warning signs of romance scams.
  
• Early identification of customer vulnerability, ensuring timely intervention when risk indicators emerge.
  
• Compassionate aftercare for victims, providing emotional support and practical recovery assistance.
  

The Council stressed that these measures form part of a wider self-regulatory framework that prioritises prevention, education, and victim protection alongside enforcement.

Empowering Consumers Through Awareness

SMFSC also announced plans to expand its public awareness campaigns to help individuals recognise and report romance fraud more easily.
These campaigns will include guidance on verifying online relationships, avoiding financial requests from unknown contacts, and seeking help without stigma if fraud occurs.

“Financial crime is not only an economic issue — it is deeply human,” the Council noted.
“Our role is to protect people by building awareness, compassion, and a culture of accountability.”

Commitment to Cooperation and Integrity

The SMFSC reaffirmed its commitment to collaborating with financial institutions, law enforcement agencies, and digital platforms to develop coordinated responses to emerging forms of fraud.
The Council emphasised that self-regulatory efforts, when combined with shared responsibility, can help create safer digital and financial environments for all.

“Romance fraud destroys trust — not just in people, but in financial systems,” SMFSC concluded.
“We are determined to restore that trust through vigilance, transparency, and cooperation.”