Investigating International Romance Scams

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Photo: victor goodpasture photography

Daniel Wessel, CFE, a United States Postal Inspector at the U.S. Postal Inspection Service (USPIS), presented a romance scam case study he worked on during his session, “International Romance Scams: A Case Study” at the 36th Annual ACFE Global Fraud Conference.

Identifying a Romance Scam

Romance scams are frauds that prey on people’s emotions, leaving victims financially and emotionally devastated. These scams often start online, with fraudsters creating fake profiles to lure unsuspecting individuals into relationships. The scammer then exploits the victim’s trust and affection to extract money, often under false pretenses.

Identifying a romance scam can be challenging. Wessel outlined several effective methods to identify potential victims:

  • Internal notifications within financial institutions.

  • Regulatory notifications.

  • Law enforcement databases.

  • Direct victim notification.

  • Undercover contact.

The Case Study

Wessel’s presentation focused on a case he investigated as a U.S. Postal Inspector in the Southern Maryland area. The investigation began when an elderly female victim mailed a check from Arizona to a bank in Maryland. When the bank received the check, they contacted the intended recipient, which raised suspicions of a potential romance scam. An interview confirmed that the elderly woman was indeed a victim.

The victim believed she was in a romantic relationship with a Lieutenant Commander in the United States Army, but she was actually being scammed by Isidore Izuchukwu Iwuagwu, a former corrections officer from Maryland. The suspect, Iwuagwu, lived in Prince George’s County, Maryland, had a prior arrest record and worked in Washington, D.C.

Wessel stated that the investigation revealed 21 fully identified victims, though numerous others remained unidentified. All the identified victims were female, targeted through Facebook and nearly all of them were elderly women involved in a military romance scam. Wessel detailed how each victim was assigned a pseudonym to protect their privacy, from “Victim A” to “Victim U”, and delved into how each victim was scammed. In the end, the victims suffered a combined total of more than $1 million in losses.

Victim Outreach Challenge During the Investigation

Wessel specified how one of the biggest challenges from this case was victim outreach. For example, one victim had committed an immigration offense, creating a delicate situation. Wessel emphasized that investigators must explain that they are there to help and, when legally permissible, clarify they are not there for any immigration issues. It is also important to utilize agency and/or community resources to help with cultural and language barriers. While this presents a challenge, it is not an insurmountable roadblock.

As Wessel explained, “There is something called a U visa … they are reserved for victims and witnesses of a crime who are cooperating with law enforcement … and allows them legal status to stay here.” He further noted that after three years, a U visa holder is eligible to apply for a green card and that U visas can also be granted to relatives. Additionally, Wessel pointed out that one of the crimes that qualifies for a U visa is blackmail, which is a common fear among romance scam victims. U visas can be a valuable tool in situations like this, providing legal status and encouraging cooperation.

How to Investigate a Romance Scam

Throughout the session, Wessel provided steps for conducting a proper romance scam investigation:

Utilize Your Network

Building a strong professional network is crucial for success in these kinds of investigations. Utilize your industry contacts, attend local ACFE Chapter meetings and build networks even with competitors. Additionally, work with co-case agents and participate in professional banking, law enforcement and fraud groups. Do not hesitate to cold-call law enforcement agencies to expand your network and access additional resources.

Research the Scam

Thoroughly research the specific scam you are investigating to understand the tactics and patterns involved. Conduct open-source searches, review press releases and criminal affidavits. Consult with senior investigators who have experience with these types of cases and read books on the subject. Government publications can also provide valuable insights into the methods used by fraudsters and the vulnerabilities they exploit.

Victim Outreach

Victims of romance scams present unique challenges that require a sensitive and empathetic approach. They often have trust issues, experience significant embarrassment and may fear a blackmail attempt. These victims may also be dealing with changing contact information, cognitive decline, noncitizen status and language barriers. However, there are opportunities to connect with victims and gather valuable information. Their emotional investment could have created detailed memories and they may even have saved electronic communications with the fraudsters.

Searches and Search Warrants

There is extensive information available online that can be used to identify suspects and gather evidence. Use search engines like Google and Yahoo, as well as social media platforms like LinkedIn, Facebook and Instagram. Law enforcement can obtain search warrants for private content to access emails, messages and other sensitive information. Search warrant content can lead to additional targets for warrants and subpoenas, generating more information and leads.

Follow the Money

Tracking money flow is essential for uncovering the scam’s scope and identifying co-conspirators. Determine how the money is spent and whether it stays domestic or is sent overseas via wire transfers, cryptocurrency or other methods. Investigate whether the subject is involved in trade-based money laundering, which can involve receiving victim funds in the U.S., purchasing vehicles in the U.S., shipping those vehicles overseas, receiving money in an overseas bank account and then distributing overseas currency in that country in exchange for receiving equivalent fraud victim money in the U.S. Some U.S.-based subjects may put money away to build a future overseas.

Suspect Interview

Prepare thoroughly by reviewing the evidence and creating an outline. Determine what you can prove the suspect knew. Was the suspect aware of the scam or just the money movement? Know the details so you can confront the suspect with facts and evidence. Choose an interview method or an evidence-based approach and create a plan for handling denials.

By understanding tactics used by fraudsters conducting romance scams, building strong networks and employing a comprehensive investigative approach, law enforcement and industry professionals can work together to protect potential victims and bring perpetrators to justice.