Investment and cryptocurrency scams are now the riskiest in the U.S
In honor of Consumer Protection Week, the Better Business Bureau shares its riskiest scams nationwide and how to avoid them.
Investment scams, including those involving cryptocurrency, are now the riskiest scam type in the U.S., according to a new BBB report. More than 80% of people targeted by this scam reported losing money to BBB Scam Tracker. It also had the highest median dollar loss at $3,800.
Other key findings of the study — determined by exposure to a scam, susceptibility, and the average dollars lost per scam — were that 18- to 24-year-olds reported the highest median dollar loss; romance scams money losses have quadrupled, and the top age group at the most risk of scams and money loss are 35- to 44-year-olds.
“Investment and cryptocurrency scams had a significant impact in 2023, particularly for people 45 and older,” said Steve Bernas, president and CEO of BBB of Chicago & Northern Illinois. “People should always beware of opportunities that sound too good to be true. No investment opportunity will come with zero risk.”
“Investment scams take many forms, including pressure to purchase, trade, or store digital assets (cryptocurrency) with fraudulent exchanges,” he said.
Last year, investment and cryptocurrency scams both appeared on the list of 10 riskiest scams. This year, BBB 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 prior year. 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 number one as the riskiest scam type for the first time since 2019, landing at number 3 on the list. For 2023, a total of 41.9% of scams submitted to BBB Scam Tracker were online purchase scams, and 82.6% reported losing money.
The BBB Institute for Marketplace Trust produced the 2023 BBB Scam Tracker Risk Report. The top 10 are:
• Investment cryptocurrency
• Employment scams
• Online purchase scams
• Home improvement
• Romance scams
• Advance fee loan scams
• Phishing/social engineering scams
• Credit repair or debt, relief scams
• Tech support
• Travel/timeshare/vacation scams
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.
• 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. Investment/cryptocurrency scams were No. 1 riskiest for ages 45 and older.
• According to BBB 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 and older cited anger as the number one emotion.
The five most impersonated organizations reported to BBB Scam Tracker in 2023 are: U.S. Postal Service, Amazon, Publishers Clearing House, Geek Squad and Norton.
Visit BBBMarketplaceTrust.org/RiskReport for more highlights from the 2023 BBB Scam Tracker Risk Report. Anyone encountering a scam, whether they lose money or not, can report it to the BBB Scamtracker.