Online Romance Scams: One Conversation I'm Having More Often with Clients

When most people think about protecting their financial future, they think about investing wisely, planning for retirement, or minimizing taxes. Those are certainly important. But over the last few years, I've found myself having a different kind of conversation with clients more often than ever before.

It's about fraud.

Not phishing emails or stolen credit cards, but sophisticated online scams that begin with something as simple as a friend request or a message from someone who seems genuinely interested in getting to know you. Romance scams have become one of the fastest-growing forms of financial fraud in the country. They're costing Americans billions of dollars each year, and the people who fall victim aren't careless or uninformed. They're intelligent, successful individuals who simply trusted the wrong person. As a financial advisor, I've learned that protecting wealth isn't just about helping people grow their money. It's also about helping them recognize the risks that could take it away.

Why These Scams Work

Many people assume they would immediately recognize a scam. The reality is much different. These criminals aren't looking for quick wins. They're patient. They spend weeks or even months building trust before money is ever mentioned. The conversations feel natural. They ask about your family. They remember birthdays. They check in every morning and every evening. Over time, they become part of your daily routine. Then comes the emergency. Maybe they're traveling overseas and their wallet was stolen. Maybe they need help paying customs fees before they can return home. Maybe a business deal unexpectedly fell through. The first request is often relatively small. If that payment is made, another request usually follows. Then another. By the time victims begin questioning what's happening, they often feel emotionally invested in the relationship and financially committed to seeing it through.

Why Smart People Fall for It

One of the biggest myths about scams is that only gullible people become victims. That's simply not true. These scams are designed to manipulate human emotions, not intelligence. We all want to believe the people we care about are being honest with us. That's true whether the relationship began online or in person. Scammers understand that trust is built over time. Once they've earned it, they know emotions often outweigh logic. I've worked with enough families over the years to know that financial decisions are rarely just about money. They're about hope, fear, relationships, and wanting to help someone you believe cares about you. That's exactly what makes these scams so effective.

Warning Signs You Should Never Ignore

No single warning sign automatically means someone is trying to scam you. But when several appear together, it's time to slow down. Be cautious if someone:

·      Claims to work overseas in the military, engineering, medicine, or the energy industry.

·      Quickly begins talking about love or a future together.

·      Always has a reason they can't meet in person or join a spontaneous video call.

·      Wants to move your conversations to a private messaging app.

·      Eventually asks for money through wire transfers, gift cards, cryptocurrency, or other difficult-to-trace payment methods.

NOTE: One of the most common tactics scammers use is creating urgency. They want you to act before you have time to think or ask someone else's opinion. That's exactly when you should pause.

How to Protect Yourself

One of the simplest pieces of advice I can give is this: Don't make important financial decisions in isolation. If someone you've met online asks you for money, talk to someone you trust before sending anything. That might be a spouse, an adult child, a close friend, or your financial advisor. A second perspective often reveals warning signs that are difficult to see when emotions are involved.

It's also worth taking a few simple precautions:

·      Reverse image search profile photos.

·      Request a live, unscripted video conversation.

·      Never feel pressured to act immediately.

·      Be skeptical of anyone asking you to keep the relationship or financial requests secret.

·      Legitimate relationships don't require secrecy or financial urgency.

The Conversation Every Family Should Have

Many romance scams target people who are widowed, divorced, or living alone, but the truth is that anyone can become a target. That's why I encourage families to talk openly about online relationships and financial requests. Not because you don't trust one another. Because scammers are becoming incredibly sophisticated. Sometimes all it takes is one conversation to prevent a devastating financial mistake.

Ask your parents. Ask your adult children. Ask the people you care about whether anyone they've met online has ever asked them for money. It may feel like an awkward conversation today. It could be one of the most important conversations you ever have.

At Wealth Effects, we believe financial planning is about much more than investments. It's about helping people make informed decisions, avoid costly mistakes, and protect the wealth they've worked a lifetime to build. Markets will always fluctuate. Tax laws will change. But protecting yourself from fraud is one risk you can prepare for. If you're ever unsure about a financial request or simply want another opinion before making an important decision, we're here to help.

Sometimes the best financial decision you'll ever make is the one you don't make.

-William Liberti, Chief Executive Officer

Disclosure: Wealth Effects LLC is a registered investment advisor. For informational and/or educational purposes only. Not intended as investment advice or a recommendation of any investment product.