At first, he only asked for a ten-euro gift card so he could continue chatting with me. Gradually, he wanted more and more money, and no amount seemed to be enough.
–Ninnu, an expert by experience of Romance Scam Recovery Project, in her story
Gift cards are increasingly being used as part of romance scams. It is important for both retail professionals and consumers to recognize this phenomenon and understand its implications.
The number of online scams is constantly growing. According to Finnish police data, in 2024, 460 reports of romance and document fraud were filed, with a total criminal profit of approximately €7.2 million. Romance scams, or love fraud in police terminology, were the third most common form of online fraud in Finland last year.
Romance fraudsters approach people on social media platforms and dating services using fake profiles with the aim of arousing the victim’s interest and ultimately defrauding them of money. The perpetrators pretend to have romantic feelings and send flattering messages constantly to their victims to make them infatuated and become addicted on messaging.
Once the victims’ feelings and trust have been sufficiently strengthened through psychological manipulation, the perpetrators begin to pressure them to send money, often by invoking a fictitious emergency situation. The phenomenon is more widespread than the number of reported crimes. According to the police, not all cases are reported, and some cases are reported incompletely.
It is also noteworthy that many investment fraud cases reported to the police are very often linked to romance scams. In this type of fraud, known as romance baiting, the perpetrator approaches their victim online with seemingly romantic intentions and entices them to transfer their funds to a fraudulent crypto investment platform in the hope of a prosperous future together. Romantic feelings are not always involved, but what all cases have in common is that the scammers exploits the victims’ trust.
Romance scams are changing over time
The Romance Scam Recovery Project has identified more than 150 victims of romance scams and found that money is being sent to cybercriminals less and less often via traditional bank transfers.
Only about one-fifth of those who sought help reported transferring money to scammers from their own bank accounts. Cryptocurrencies and, in particular, gift cards have taken their place; about half of people seeking the project’s help have reported using them to transfer money to criminals.
Gift cards from various service providers sold in stores and kiosks can be used as a means of payment for purchasing various products and services online. Gift cards from highly popular global brands such as Google Play, Spotify, iTunes, App Store, and Steam can be loaded with monetary value that can be used to purchase digital content, subscriptions, or applications without the customer having to use their own payment card. Gift cards are marketed as a safe and convenient payment method, but at the same time, they are an ideal tool for scammers to commit crimes.
Gift cards make fraud easier to commit
Banks have worked hard for years to prevent various types of online fraud and are quick to intervene in international transfers from customer accounts. For this reason, cyber criminals have increasingly turned to gift cards, as they can be used to circumvent controls and mechanisms designed to protect consumers. The ease of use of gift cards benefits scammers.
A gift card is an anonymous payment method, and it is almost impossible to track the route and destination of the monetary value loaded onto it. In principle, neither the buyer’s nor the recipient’s details are stored anywhere, so gift cards cannot be traced. Money transferred via gift cards is extremely difficult to recover.
Scammers who exploit the features of gift cards typically claim to their victims that they have fallen into a sudden crisis in order to alarm the victims and get them to help financially. In romance scams, the victim is often subjected to such intense psychological manipulation that they are no longer able to perceive the reality of the situation and end up buying a gift card even in the middle of the night. The scammer advises the victim on purchasing the right gift card and providing the redemption code.
Once the victim of a romance scam has given the gift card details to the perpetrator, the perpetrator can either use the card’s funds for the service it is intended for or sell the card details to parties who can convert them into cash. One method is to use the gift card to purchase physical products, such as popular consumer electronics, and then resell them. Converting money obtained through criminal means into legal property can be considered a new form of money laundering, with a low risk of detection.
The use of gift cards in romance scams is commonplace
The use of gift cards for fraudulent purposes can be seen every day in Finnish stores and kiosks. The Romance Scam Recovery Project has received contacts from people working in the retail sector who express their concern and frustration at having to serve customers who are clearly victims of romance scams or other fraud. They feel that they do not have sufficient opportunities to intervene in customers’ actions at the point of purchase.
Romance scams cause millions in losses to Finns every year. On a global level, the losses are estimated to be in the trillions of dollars. Gift cards account for a significant proportion of the total. The advantage of gift cards for criminals is that their use obscures the value of the money, and the victim may not be able to grasp the total amount of money they have lost. The value of individual gift cards demanded by scammers from their victims varies from tens to hundreds of euros, and with repeated requests, the victim can lose tens of thousands of euros.’
Service providers are clearly aware that gift cards are a key part of online scams. ”Beware of gift card scams. Do not share your code,” reads the small print on the back of a card sold by one company. With a few words in a disclaimer, the company cleverly washes its hands of the matter. Unfortunately, this does not entirely succeed in overcoming the reality created by the perpetrator, in which the victim of romance fraud is subjected to serious psychological, financial, and digital abuse.
The consequences of romance scams are serious
Victims of romance scams suffer serious consequences. It is, unfortunately, common for their financial and health situations to deteriorate. When people are burdened with huge debts and, for example, must sell their home to pay off the debts accumulated as a result of the scam, the situation can lead to thoughts of self-harm.
Online fraud such as romance scams are becoming very costly for society.
The money stolen ends up in the hands of international crime, while countries targeted with online fraud are left with the negative consequences and a growing number of people in debt. The society pays for the consequences of romance scams, such as incapacity for work and prolonged stress and trauma symptoms.
The use of gift cards as a tool for online fraud is a relatively new and unfamiliar phenomenon to many. Online dating safety can help victims of romance scams, but more information about the dark side of gift cards is definitely needed. We hope that the retail sector will be able to help victims of fraud and intervene in situations that occur at the checkout.
We hope that in the future, gift cards can be used safely, for example, through better traceability. The convenience and ease of use of gift cards are an advantage for consumers, but unfortunately, criminals also exploit these features. Therefore, those who sell gift cards have an important role to play in developing responsible and secure solutions.