RALEIGH – Better Business Bureau Serving Eastern Carolinas (BBB) is sharing the latest findings from the newly released 2023 BBB Scam Tracker Risk Report.
In 2023, BBB Scam Tracker published more than 67,000 reported scams. Using data from those reports, BBB publishes its list of 10 riskiest scam types. There were some significant shifts in position on the list for 2023.
1) Investment/cryptocurrency scams
Cryptocurrency scams, most of which involve some sort of investment opportunity, are now the riskiest scam type. 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 ten riskiest scams in 2022. This year, we combined them because most cryptocurrency scams involved some sort of investment opportunity.
Cryptocurrency scams often start on social media with an “investor” contacting you, and either promising you that your investment will grow quickly, or trying to convince you the investment will only work if you act right now. These common tactics are red flags of an investment scam.
2) Employment scams
Employment scams 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.
If you are looking for employment, beware of scam job postings, fake recruiter emails, and work-at-home schemes. These cons often use real company names and can be very convincing.
3) Online purchase scams
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 more than 80% reported losing money.
Scammers take advantage of the popularity of online shopping, and often create fake websites to offer products at “too good to be true” prices. Some consumers find that once the order is placed, the company doesn’t send the product, or it is much poorer quality than they expected.
How different age groups are impacted by scams
Investment/cryptocurrency scams were No. 1 riskiest for ages 45 and older, while employment scams were No. 1 riskiest for ages 18-44.
It’s worth noting that for the second year in a row, people ages 18-24 reported the highest median dollar loss of all age groups at $155. All consumers should always beware of opportunities that sound too good to be true.
Other 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.
- 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 systems.
- The U.S. Postal Service was the organization reported to be the most often impersonated by scammers in 2023. Scammers generally targeted people by claiming their packages couldn’t be delivered and requiring them to provide information or pay delivery/redelivery fees. A list of the top 20 most impersonated organizations is provided in the report.
Resources for consumers
To read the full 2023 BBB Scam Tracker Risk Report, visit BBBMarketplaceTrust.org/RiskReport.
