Philippines vulnerable to 'romance scams'

THE Philippines has been tagged as one of the top 10 countries that saw a rapid surge in romance scams last year, the credit rating company Moody's said Thursday. Moody's identified 1,193 new entities and people globally with potential ties to romance scams in 2024, with the United States accounting for over a third (38 percent) of new romance scam profiles among top 10 countries. This was followed by Nigeria (14 percent), India (12 percent), the UK (11 percent), Malaysia (5.0 percent), China (5.0 percent), the Philippines (4.0 percent), Brazil (4.0 percent), Canada (4.0 percent) and Australia (3.0 percent). "Financial grooming scams increased greatly during the Covid pandemic, as isolation led to a greater need for emotional connection — and increased vulnerability," Moody's said on Thursday. "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 added. Moody's said the number of Filipino entities and people with potential links to romance scams saw a rapid surge to 45 in 2024 versus 10 in 2023. It said that perpetrators often use fake profiles to solicit explicit images or videos from victims — mostly teenagers, particularly boys — then extort money by threatening to expose the images to friends, family or on social media. Bangko Sentral ng Pilipinas (BSP) Deputy Governor Elmore Capule previously said that older people are targeted in this kind of scheme. The Anti-Financial Account Scamming Act (Afasa) could help protect against cyberattacks, unauthorized access, and fraudulent transactions. "There is a determination first. There is an investigation. But what's important [is] ... under the Afasa, there should always be temporary holding funds," Capule said. "That is, if it has already been determined where it went. The complainant should really act quickly and notify the BSP," he added.