Online scams top the list of fraud tracked by the BBB
Social media scams rose 63.8% from 2022-2023
(InvestigateTV) — According to the Better Business Bureau’s (BBB) annual Scam Tracker Risk Report, online scams made up 70% of fraud reports in 2023.
The report looked at how scams are perpetrated, who’s being targeted and which scams have the greatest impact on consumers.
One of the riskiest types of scams right now are and investment and cryptocurrency.
“(Cryptocurrency) became the number one riskiest scam with an average median loss of $3,800,” Melanie McGovern with the BBB said. “These cryptocurrency scams start out as ‘I’ve got a great investment opportunity’ and all of a sudden you’re recruiting people to come in. So, you want to make sure you know what it is, that is legitimate, before you give anyone any kind of money.”
Employment scams came in at the number two spot with a median loss dollar of nearly $2,000 per victim.
Reports of employment scams also rose 54% from 2022 to 2023.
“It’s interesting to see employment scams is still up at the top. That people are unfortunately still targeting people who may be desperate for a job,” McGovern observed. “Many need that work at home opportunity. And they want to believe that it’s real. So unfortunately, they’re taking advantage of that emotion.”
McGovern also said more than 40% of scams reported to the BBB involved online purchases with over 80% of victims losing money.
And for the second year in a row, young adults between the ages of 18 to 24 reported the highest median dollar loss of all age groups.
“It could be two things. It could be that age group is reporting to us more. Or it could be that again, a lot of younger people aren’t as skeptical when it comes to the internet as much as many older people are, and that they grew up with it. That they’re used to it. Some of the transactions may be just quick online shopping. Passive shopping on social media. Not thinking about it. Not taking that extra step,” McGovern explained. “That’s why it’s so important for everybody to have those conversations with the younger people in your life about ‘hey just cause it’s on your phone doesn’t mean it’s always on the up and up.’ And to do that research. Do those checks to make sure that it is a legitimate website before you put any payment information in.”
McGovern encouraged consumers to reports scams to the BBB.
She said even those who did not lose money should report suspicious activity. It could help prevent others from becoming the next scam victim.
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