IRS Warns of Rising Romance Scams as Victims Unknowingly Aid Criminals

Victims can face legal charges for "money muling" as romance scams double from 2024 to 2025.

Published on Feb. 13, 2026

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The IRS Criminal Investigation (IRS-CI) Denver Field Office is warning the public about a surge in romance scams, with the number of cases investigated doubling from 2024 to 2025. Victims, often unaware they are engaging in illegal activity, can face legal charges for "money muling" by using their personal bank accounts to launder money or transfer stolen funds for criminals. The IRS-CI advises victims to heed warnings from their banks and other agencies about suspicious deposits or transfers, as recovering lost funds is extremely difficult, especially with the rise of cryptocurrency.

Why it matters

Romance scams have become increasingly sophisticated, with criminals using online communication and personal details to manipulate victims into unknowingly aiding in money laundering and other illegal activities. This trend poses a significant financial risk to individuals, and the potential for legal consequences adds to the harm experienced by victims.

The details

According to Johnathan Towle, Assistant Special Agent In Charge at the IRS-CI Denver field office, victims of these scams often don't realize they are doing something wrong by allowing their personal bank accounts to be used for money laundering or transferring stolen funds. This "money-muling" activity can lead to criminal charges, even if the victim was unaware of the illegal nature of the transactions. Towle warns that victims who continue to engage in these activities after being warned by their bank or federal agencies can still be prosecuted.

  • The number of romance scams investigated by the IRS-CI doubled from 2024 to 2025.

The players

IRS Criminal Investigation (IRS-CI) Denver Field Office

The federal agency responsible for investigating and cracking down on romance scams and other financial crimes.

Johnathan Towle

The Assistant Special Agent In Charge at the IRS-CI Denver field office, who is warning the public about the rise in romance scams and the potential legal consequences for victims.

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What they’re saying

“From face value, it sounds like, 'Oh, I wouldn't fall for that because I'm not going to just give a stranger money,' but they're not strangers by the time they're asking for money.”

— Johnathan Towle, Assistant Special Agent In Charge, IRS-CI Denver (9news.com)

“If you're a victim and your bank is warning you about depositing this money or is warning you about sending the money overseas or turning the money into cryptocurrency, I would listen to those warnings because they deal with this all the time.”

— Johnathan Towle, Assistant Special Agent In Charge, IRS-CI Denver (9news.com)

What’s next

The IRS-CI Denver Field Office will continue to investigate and crack down on romance scams, working with banks and other agencies to identify and prevent victims from engaging in illegal money-muling activities.

The takeaway

This case highlights the growing sophistication of romance scams and the need for increased public awareness and vigilance to avoid falling victim to these crimes. Victims must be cautious about any requests for money or financial transactions, even from individuals they believe they know, and heed warnings from financial institutions to protect themselves from potential legal consequences.