Romance scams: Moody’s identifies 1,193 entities with potential ties in 2024, a six-year high 

Moody’s has identified 1,193 new entities and people globally with potential ties to romance scams in 2024, which was a six-year high. Significantly, India was amongst the top three countries of new romance scam profiles in 2024.

In 2024, the US accounted for over a third or 38% of new romance scam profiles among top 10 countries, the data from Moody’s showed. It was followed by Nigeria (14%), India (12%), the UK (11%), Malaysia (5%), China (5%), the Philippines (4%), Brazil (4%), Canada (4%) and Australia (3%). 

As per its overall data, 2024 registered a 14% increase in new romance scam profiles compared to 2023. While the number of new romance scam profiles added to Moody’s screening database fell by 29% in 2020, they surged by 57% in 2021 as global lockdowns took hold, it noted. 

Financial grooming scams increased greatly during the Covid pandemic, as isolation led to a greater need for emotional connection and increased vulnerability. Sextortion is a type of romance scam targeting teenagers, particularly boys. Perpetrators use fake profiles to solicit explicit images or videos from victims, then extort money by threatening to expose the images to friends, family or on social media. 

Moody’s curates this data from information on negative news stories, sanctions, government watchlists and politically exposed persons (PEPs). It then collates this information into ‘risk profiles’ of organisations and people. 

“Financial institutions can use this risk information to conduct due diligence and screening for anti-money laundering and combating the financing of terrorism requirements,” it said in a statement on Thursday. 

This data is important as criminals often seek to launder the money generated from romance scams like sextortion via the traditional financial system. “Banks can face significant reputational risks and fines,” it further said.