Romance Loan Trap
A manipulation in which a scammer persuades a victim to take out loans or drain retirement savings to fund what turns out to be a fraudulent relationship.
Also known as: retirement fund romance fraud, loan coaching scam, financial depletion romance
Last reviewed: 10 June 2026
When a victim's accessible savings are exhausted, a determined scammer will push toward additional sources of funds. The romance loan trap involves coaching victims to borrow against their home, take out personal loans, liquidate retirement accounts, or borrow from family — all framed as temporary measures until the scammer's promised wealth arrives or a business deal closes.
Victims are often told explicitly what to say (or not say) to their bank or financial adviser. The scammer may warn them not to mention the true purpose of the withdrawal, framing this as protection of their private relationship or caution against third-party interference. This coaching makes the victim an active participant in overcoming the financial safeguards designed to protect them.
Financial institutions occasionally attempt to warn customers making unusual large withdrawals; victims who have been coached to deflect these concerns may override important safeguards. Anyone whose online contact begins advising them on how to access more money should treat this as a decisive indicator of fraud.
Examples
- A victim is guided through remortgaging their home by an online partner who promises the proceeds will be returned tenfold once a contract is signed.
- An online romantic interest coaches a victim to tell the bank the funds are for home improvements, while the true purpose is to pay customs fees on a fictional shipment.