Online scams are ever-changing and continue to be more and more prevalent due to the increased amount of time Americans spend online. The scary truth is that online scams have increased 87% since 2015 and are the most prevalent, making up 55% of all scams in 2022 according to the BBB Institute for Marketplace Trust’s recent Start With Trust Online Research report.
Online scams resulting in a monetary loss increased to 81% during the pandemic according to the BBB and our military is not exempt. In fact, fraud attacks in the military community increased 69% in 2021 according to the FTC. Active-duty service members and veterans report the highest amount of losses due to fraud, which reached approximately $267 million that year. (We discussed this in more detail during Military Consumer Month – you can read that article here:
There are a lot of different scams out there and all of them could be perpetrated online, however, there are a few that seem to be more prevalent and result in the most monetary loss. Here is a list of those top online scams according to the BBB’s report and a few steps you can take to protect yourself.
Online Purchase Scams
Online purchase scams top the list of scams resulting in a monetary loss at 89% and has the largest dollar amount of loss reported. Further, active-duty military members were more likely to report losing money to online purchase scams, with 84% reporting a monetary loss. To date, 11% of all scams reported to the BBB in 2022 were from military members and their families.
Online purchase scams typically involve a scammer pretending to be a legitimate business and selling products via a fake website. These sites look genuine and may even be advertised on other business websites and social media platforms. Typically, they are open for a short period of time and disappear quickly.
Purchase scam warning signs include offering products at unbelievably low prices, recent/new presence on social media, having no reviews from previous customers and not providing shipping information or terms and conditions on their site.
The best way to protect yourself is by doing a little research before making the purchase. Always check the website and social media pages to learn more about the retailer; if they are foreign or domestic, if they are using a secure site and what payment types they accept.
Cryptocurrency & Romance Scams
According to the BBB’s report, these two are next in line of online scams with the highest incident of loss – 87% for Crypto & 85% for Romance scams. The two combined are quickly becoming one of the top online scams internationally. According to the Federal Trade Commission, crypto romance scams conned around $139 million dollars in 2022 from victims in the U.S. Further, the FTC reports that approximately 46,000 consumers reported losing more than $1 billion dollars in Crypto in 2021.
Crypto Romance Scams are very similar to regular romance scams, except they are after your crypto instead of your cash. The scammer will make contact via a dating app or social media site and will work to earn your trust and affection. Once they have it, they will claim to have knowledge of investing and trading opportunities. The scammers may even walk you through a few legitimate trades to build your trust. These scams have become very sophisticated and often have fake trading sites that mimic real platforms.
Your best form of defense is to do your research before you divulge your personal information, invest or transfer funds to anyone or any entity you are not completely sure are legitimate. Search the companies and names of individuals you are corresponding with and include the words “review” and “scam” in your search. Be leery of promises of big returns, request for emergency needs, travel expenses for meetups, deadlines and “expiring” offers.
Scamming Contact Methods
Scammers have become very resourceful when coming up with new scams and reaching their targets.
Websites and online shopping continue to be the most popular form of contact and results in the most monetary loss. Email comes in second and then social media. Traditional phone scams resulting in loss have been on the decline for some time now and currently accounts for just 17% in 2022. The trend seems to be moving toward text messages which is now the contact method for around 30% of online scams. The text will typically contain a link that will direct the victim online to a fraudulent website. Losses associated with text scams are also increasing and now around 20% in 2022 with the average loss reaching over $600.
Often these texts will appear to be from your bank, the post office stating you’ve missed a delivery or may simply say “Is this you?”. Their goal is to get you to respond and start a conversation and attempt to either gain your personal information or lead you to visit a website. Fraudsters are very savvy and are masters at knowing what to say to get you to act.
The best tip is to never assume a text is legitimate. Remember, scammers can “spoof” numbers and websites. Again, research is your best defense. Do not reply or click on any links sent from any text that you haven’t verified.
Protecting Yourself
As I’ve stated several times in this blog, research is your best defense. Here are a couple other tips you can use to protect yourself.
Websites – Check the URL for incorrect letters or symbols that may make it appear to be a legitimate site. Something a little off is a red flag. Remember, con artist can spoof sights. Also look for the age of the site. A new site is another red flag. You should also look for proper grammar, contact information and if it’s a secure site (look for “https” in the URL)
Social Media – Research the company before purchasing from an ad on social media. Scammers can purchase ads and appear online as a legitimate business. Do more research on the product and company.
Text – Do not click on any links. This may allow scammers to download malware and hack your phone. Additionally, never reply STOP – this indicates that your phone is active and will most likely prompt more text being sent to you. You can also block the sender and report it by forwarding the messages to SPAM (7726).
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