Investment scams, including those involving cryptocurrency, are now the riskiest scam type, according to a new report from the Better Business Bureau. More than 80% of people who were targeted by this scam type reported losing money to BBB Scam Tracker. It also had the second highest median dollar loss at $3,800.
Investment scams take many forms, including pressure to purchase, trade, or store digital assets (cryptocurrency) with fraudulent exchanges. Investment and cryptocurrency scams both appeared on the list of 10 riskiest scams in 2023. This year, we combined them because most cryptocurrency scams involved some sort of investment opportunity.
Employment scam reports remained the second riskiest scam type in 2023. Reports increased 54.2% from the year before. Employment scams had a median dollar loss of $1,995, significantly higher than the overall median dollar loss of $100 reported for all scam types.
Online purchase (shopping) scams dropped from the riskiest scam type for the first time since 2019, landing at number 3 on the list. This year, 41.9% of scams submitted to BBB Scam Tracker were online purchase scams, and 82.6% reported losing money.
Investment and cryptocurrency scams had a significant impact in 2023, particularly for people 45 and older,” said Melissa Lanning Trumpower, executive director of the BBB Institute for Marketplace Trust, which produced the 2023 BBB Scam Tracker Risk Report. “People should always beware of opportunities that sound too good to be true. No investment opportunity will come with zero risk.”
Key findings of the report include:
Scams perpetrated online continued to grow, making up 68.4% of all reports. More concerning, online scams were more likely to result in a reported monetary loss than scams perpetrated in person or via phone.
Overall reported susceptibility (the percentage of reports with a monetary loss) rose 27.8% from 2022 to 2023. Overall reported median dollar loss fell 41.5%.
For the second year in a row, people ages 18-24 reported the highest median dollar loss of all age groups ($155).
The percentage of people who reported engaging with a scammer via social media rose 63.8% from 2022 to 2023.
Credit cards remained the most reported payment method with a monetary loss, followed by bank account debit and online payment system. Reports of bank account debit with a monetary loss increased 66.4%.
Employment scams were No. 1 riskiest for ages 18-44. Online/cryptocurrency scams were No. 1 riskiest for ages 45+.
According to our survey research, people between the ages of 18 and 44 named anxiety/stress as the number one emotion they felt after being targeted by a scam, while people 45+ cited anger as the number one emotion.
The five most impersonated organizations reported to BBB Scam Tracker in 2023:
- U.S. Postal Service
- Amazon
- Publishers Clearing House
- Geek Squad
- Norton
A list of the top 20 is provided in the report.
For more highlights from the 2023 BBB Scam Tracker Risk Report, visit BBBMarketplaceTrust.org/RiskReport.
Go to BBB.org/ScamTracker to report a scam, learn more about other risky scams on BBB.org/ScamTips and visit our news feed.
ABOUT BBB RISK INDEX & BBB SCAM TRACKER RISK REPORT
To better understand which scam types pose the highest risk, BBB Institute assesses risk based on the BBB Risk Index: Exposure x Susceptibility (or likelihood of loss) x Monetary Loss. These three factors help us understand the impact of scams and who is most vulnerable. Each year, BBB Institute publishes its annual findings in the BBB Scam Tracker Risk Report. The report also includes survey research conducted with those who reported scams to BBB Scam Tracker.
ABOUT BBB SCAM TRACKER
BBB Scam Tracker (BBB.org/ScamTracker) is an online platform that enables consumers and businesses to report attempted and successful acts of fraud. The platform also enables people to search the scam reports to help determine if they are being targeted by a scam. The platform was upgraded in 2022 with support from Amazon and Capital One.
ABOUT THE BBB INSTITUTE FOR MARKETPLACE TRUST
The BBB Institute for Marketplace Trust (BBB Institute) is the educational foundation of the International Association of Better Business Bureaus. Our mission is to educate and protect consumers, promote best practices for businesses, and solve complex marketplace problems. Our consumer educational programs, which include a wide array of resources on fraud prevention and education, are delivered digitally and in person by BBBs serving communities across the United States and Canada. You can find more information about BBB Institute and its programs at BBBMarketplaceTrust.org.
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