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Thousands of cases of online dating fraud were reported in 2014, with over 41.2 million American users contributing to the $1.2 billion industry, according to an article by the Better Business Bureau. But, these Internet criminals are not working alone.
From blackmail to money laundering schemes, online dating websites mask a dark underworld where criminals target unsuspecting victims from behind anonymous usernames, and usually from overseas in what one industry expert called "little sweat shops." Much of the black-market activity has recently surfaced. A 2013 Federal Trade Commission report cited complaints that totaled $105 million in losses to romance scams alone, according to the Wall Street Journal. Still, these criminals must stay a step ahead of their victims.
"It appears that they're much more organized," said Molly O'Hearn, vice president of operations at Iovation, the Portland Ore.-based fraud protection company. "It's not just one individual at home taking a stab in the dark."
O'Hearn said that her company monitors other industries like finance, telecommunications, gaming and retail, and can track certain groups of scammers looking to maximize potential profits over large geographic areas. One device might access...