One of the cases the FCA reviewed involved a victim losing more than £428,000.

Romance fraud is a growing financial crime, with cases rising by 9% last year. Victims are deceived into sending money to fraudsters who engineer false romantic relationships or friendships. Over 8 in 10 cases (85%) start online, particularly through social media and dating websites, suggesting platforms have a critical role to play in preventing fraud and reducing harm.

In its romance fraud review, the FCA has set out measures banks and other payment firms can take to protect their customers. These include better detection and monitoring systems, staff training, early identification of signs of vulnerability, and compassionate aftercare.

Steve Smart, executive director of enforcement and market oversight at the FCA, said:

'Romance fraud is a vicious crime. All too often it is the vulnerable that fall victim. The impact - financially and personally - can be devastating. We recognise the challenge banks and payment firms have in combating this complex crime and this review aims to help them stay one step ahead of the criminals.

'We also all need to be on guard so we can protect ourselves and loved ones by recognising the romance fraud red flags.'

In one case in the FCA's review, the victim made 403 payments to a fraudster over the course of a year, resulting in losses of over £72,000. The firm's investigation acknowledged that it had not identified the sustained, out-of-character activity.

Another case involved a victim telling bank staff they intended to send cryptocurrency payments to Iraq, claiming it was the only method accepted by their 'partner' in the military.

The FCA also saw positive examples of banks and payment firms going above and beyond. One firm made 11 calls over a 6-week period to support a victim, demonstrating a commitment to breaking the fraudster's hold and restoring customer confidence.

Another responded with care to a victim who had recently divorced and was supporting a child undergoing cancer treatment. They proceeded to closely monitor the victim's account.