Ramsey shows co-hosts Rachel Cruze (left) and Jed Warshaw talk on-air with caller Mary.
Nearly a decade ago, Mary of Phoenix says she was swindled out of $600,000 over the course of three years in a romance scam.
“I lost all my money, my house, my car, my jewellery,” he revealed. ramsey show In a clip posted on March 2 (1). “It was considerable, and that’s why I’m still working at 71.”
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As part of her recovery plan, Mary’s daughter agreed to step in and take control of her finances, including her Social Security payments. Mary receives a monthly allowance to cover things like groceries, gas, and medicine. He gets paid when the rent is due. If an unexpected expense comes up, such as a car repair, he or she will receive an additional transfer.
Now, Mary says she wants her freedom back. She’s managed to save $200,000 under this arrangement and wants to make a down payment on a condo or townhouse. But his daughter is worried that he might get caught in another scam and become penniless again.
“I want this system to stop,” Mary said. “I’ve asked him several times and he’s not willing to do it – he still doesn’t trust me.”
Mary wants to know how she can regain financial control without destroying her relationship with her daughter, or “Should I end it and continue our arrangement?”
The rise of romance scams
According to a recent survey by AARP (2), millions of older people may be victims of online romance scams. Nearly one in 10 of respondents over the age of 50 say they have experienced an “online romantic approach” that led them to request money or incentives to invest in cryptocurrencies. The risk doubles for those aged 50 to 64.
Confidence and romance scams are common among adults over the age of 60. according to FBIOnline victims in this demographic filed 7,626 complaints in 2024 for losses of approximately $390 million.
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Fraudsters may initiate contact on dating apps or social media, warn federal trade commission (FTC). They often use social engineering techniques to build long-term trust and intimacy. But they always have an excuse as to why they can’t meet in person. For example, they may say they are stationed at a military base abroad, working on an offshore oil rig or running a construction project outside the US. They make plans to meet in person and perhaps even propose marriage, but those plans never come to fruition.
Then, after gaining your trust, they will often ask for money to help cover an “emergency” – claiming they are in the hospital or in jail. Or, they may offer to invest your money with the promise of a larger payout, usually in the form of crypto.
All of the above are common red flags, but major pitfalls still occur in which families can intervene. Unfortunately, this can lead to tensions over autonomy, dignity and even legal rights. But, as Rachel Cruze ramsey show Explains, there is a fine line between financial security and control.
Rebuilding Financial Freedom
Cruz suggested Mary take small steps to rebuild trust with her daughter by creating a roadmap – complete with budget oversight and transparency – for the gradual restoration of financial independence.
Cruz said, if there has been no worrisome behavior from Mary in the past 10 years, it is time to move on – also for the sake of her daughter. But if Mary is unable to reach an amicable agreement with her daughter to regain control of her finances, she may have to explore her legal options.
Romance scams can be especially difficult because victims may feel embarrassed and heartbroken in addition to dealing with the financial fallout.
If you have been scammed, contact your bank and/or credit card issuer immediately; If you act fast, it may be possible to reverse the banking transaction. At the very least, you can save yourself from further financial damage. You can also set up fraud alerts with each credit bureau (Equifax, Experian, and TransUnion). If you gave your Social Security number to a fraudster, alert the Social Security Administration.
Don’t forget to report the scam to local law enforcement. You can also report this to the FBI Internet Crime Complaint Center and this ftc.
The recovery process can take a long time – emotionally and financially. As Mary explained, she’s still working at 71 because the fraudster wiped out her life savings. But there is also reason for hope, as she has managed to rebuild a large portion of the wealth she once had.
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Highlights of The Ramsey Show (1); AARP(2)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.