SMFSC Urges Banks to Combat Romance Scams

The San Marino Financial Standard Council (SMFSC) — a financial self-regulatory association dedicated to promoting transparency, honesty, and responsibility in the financial sector — has called on banks and payment institutions to play a more active role in identifying and preventing romance scams, one of the fastest-growing forms of financial crime.

The Council warned that fraudsters continue to manipulate victims through emotional deception, convincing them to send money or share personal details under the illusion of a romantic or trusting relationship.
Recent reports show that romance fraud cases have increased sharply, with many victims losing their life savings to well-coordinated criminal networks operating primarily online.

“Romance scams are not simply financial crimes — they are emotional exploitation,” the Council stated.
“Financial institutions have a unique opportunity to help break the spell before irreversible harm occurs.”

Banks on the Frontline of Prevention

According to SMFSC’s findings, over 80% of romance scams begin on social media or dating platforms, but the transfer of money almost always passes through regulated financial channels.
The Council stressed that this gives banks and payment firms a crucial window of intervention.

SMFSC recommended that financial institutions strengthen their detection and response mechanisms by:

• Implementing behavioural analytics and transaction monitoring tools to flag unusual transfers linked to social engineering;
  
• Training staff to recognise emotional and financial red flags in customers showing signs of coercion or manipulation;
  
• Introducing “pause and verify” systems, where suspicious transfers are temporarily delayed for customer review;
  
• Providing compassionate aftercare to victims, including support and fraud recovery guidance.
  

“Banks are often the last line of defence,” the Council noted.
“A moment of hesitation or human intervention can prevent a devastating loss.”

Strengthening Collaboration Across Sectors

The SMFSC called for greater cooperation between financial institutions, technology companies, and law enforcement agencies to share intelligence and improve the early identification of scam patterns.
The Council also urged social media and dating platforms to strengthen their verification and reporting mechanisms to reduce fraudulent accounts and online grooming activities.

As part of its Financial Crime Prevention Initiative, SMFSC will launch new training modules and public awareness campaigns in 2025, designed to help both professionals and consumers recognise the psychological tactics used by romance fraudsters.

Empowering Consumers Through Awareness

The Council highlighted that public education remains one of the most effective tools in preventing romance scams.
It encourages individuals to:

• Be cautious of online relationships that quickly turn financial;
  
• Avoid sending money or sharing banking details with people met solely online;
  
• Speak to trusted friends or financial institutions before making unexpected transfers.
  

SMFSC also reminded consumers that legitimate organisations will never pressure individuals into secrecy or urgency when requesting money.

Protecting Trust and Humanity in Finance

As a self-regulatory association, SMFSC reaffirmed its commitment to combating financial crime through cooperation, education, and ethical standards.
The Council emphasised that the financial sector’s responsibility goes beyond compliance — it includes protecting human trust, dignity, and emotional wellbeing.

“Behind every scam statistic is a person who believed in someone’s words,” SMFSC concluded.
“By acting early, showing empathy, and working together, banks can truly help break the spell.”