Romance scams pose risks for banks: Moody's
romance scams presents significant reputational risks and fines for banks, rating agency Moody's said on Thursday. India ranked among the top 10 countries in the agency's database of new romance scam profiles.
The United States accounted for 38% of new romance scam profiles, followed by Nigeria (14%), India (12%), the United Kingdom (11%), and Malaysia and China (5% each).
Moody's reported that 1,193 new entities and people were identified for potential ties to romance scams in 2024 — the highest number in six years. This was an increase of 14% from 2023.
The agency noted that financial grooming scams surged during the Covid-19 pandemic, as isolation led to the need for emotional connection, and made individuals more vulnerable to fraud.
