NEWS ON ROMANCE SCAM

Online scams are as old as the Internet, but those that use romance as bait are on the rise as dating sites proliferate, authorities say. In 2012, the Federal Trade Commission created a separate category for them among the web crimes it tracks: "romance scam." Last year, the agency says, it received complaints of losses totaling $105 million, roughly even with the year before. "The complaints reported are only a tip of the iceberg," says FTC director Steve Baker. The U.S. Army Criminal Investigation Command calls the problem "epidemic." It says it receives hundreds of reports each month from victims bilked by individuals on dating sites who impersonate soldiers, including servicemen who have been killed in combat. "Perpetrators are asking for money to purchase 'leave papers' from the Army, pay medical expenses from combat wounds or fly home from the war zone all [items] taken care of by the military," says spokesman Chris Grey, who has spoken with victims from the U.S., Australia, Japan and Britain.

Phil Hopkins, Western Union's security chief, has traveled to Africa, where much of the fraud originates, to discuss the problem with law enforcement there. He says loosely structured fraud rings and lone schemers elude detectives. And perpetrators based outside the U.S. are tougher to prosecute.

In a statement, www.ChristianMingle.com says it has "extensive safeguard to protect its members, identify questionable profiles and eliminate attempted fraudulent activity." Spark Networks Inc., LOV -4.84% which also owns the Jewish relationship site JDate, says every new member must pledge not to send money to anyone they meet online and to report anyone who requests financial information on joining the site. Criminals typically court victims over several months with poetry, flowers and other forms of flattery. They then lure victims off the dating site to communicate by email or instant message. After the trust of the intending victim has been won, the perpetrators then present a crisis that requires money to resolve. Shelley Bernhardt, Western Union's consumer-protection director, has been giving presentations at events hosted by organizations such as AARP to raise awareness among senior citizens, whom she calls especially vulnerable to romance scams.

Culled from: http://online.wsj.com/news/articles