Scammers are out there and they want to separate you from your money. The holiday season is the worst time of the year for them because people are shopping online and in a giving mood. And with AI, they are becoming better at creating realistic text messages, websites, and social media advertisements. The best way to protect yourself from these scams is to make smart, well-informed buying decisions and be aware of the warning signs of scams and fraud.
“If it seems too good to be true, it probably is,” said James Price, Community Engagement Manager, Better Business Bureau (BBB) of Middle Tennessee.
The BBB offers a scam tracker that anyone can access. And the American Association of Retired Persons (AARP) offers an online scam mapping service where you can track scams in your zip code.
Every year, the BBB Institute for Marketplace Trust develops a report of the previous year’s scam trends. The most recent report, from 2024, notes that the two groups most susceptible to scams are those between 55 to 64 and those ages 18 to 24. Although those over 65 often have the highest losses.
“Age groups are targeted by different scams and have varying susceptibility and median losses. The 18–24 age group faces employment scams with a high median loss, while older adults (65+) are more vulnerable to phone and mail scams, resulting in the highest median losses despite having a lower susceptibility rate,” notes the BBB report. “Other groups, like 55–64-year-olds, may have higher susceptibility but lower median losses.”
The most prevalent scam across all age groups involves investments, especially related to cryptocurrency. It is also the riskiest, with a median reported loss of $5,000. And about a third of those scammed were manipulated over time through a new online friendship or romantic relationship.
According to the BBB website, “Investment scams take many forms, but all prey on the desire to make money without much risk or initial funding. Some scenarios include pressure to purchase, trade, or store digital assets (cryptocurrency) with fraudulent exchanges.”
Employment-related scams are the second most prevalent. Those drawn in are most often offered high wages, work-at-home opportunities, or extremely flexible work hours. A big one is high pay for a minimal amount of time working.
Often, workers are drawn in through a fake application asking for personal information like a social security number and bank account number, which can be used to access their bank account or steal their identity. They may be “overpaid” with a fake check and asked to wire back the difference. Or they may be asked to pay for training or equipment. There are many variations on these themes.
Third are online friendship or romance scams. They are also the source for the highest median loss, $6,099 per person, according to the BBB report. Perpetrators often ask for money, personal information or items of value. Currently, many of these are starting out as texts that either sound like they are from a friend, or they seem like a “wrong number,” which most people would respond to with a friendly reply noting a wrong number or asking who the person is. Then the person on the other end persists. It is best to just delete texts from unknown sources without responding.
The top ten consumer scams, according to the BBB, are:
1. Investment/cryptocurrency
2. Employment
3. Romance Friendship
4. Online Purchases
5. Home Improvement
6. Phishing/social engineering
7. Advanced fee loan
8. Travel/vacation/time share
9. Government grant
10. Tech Support
With electronic scams on the rise, it is best to question everything seen online, and if anything seems questionable, then it probably is. Don’t take anything at face value. Don’t respond to anything that comes unsolicited that offers a carrot (prize) or a stick (threat). Currently, there are a number of scams threatening penalties for not paying toll fees.
Using AI, scammers are getting better and better at looking like a real, well-respected business. Here are the top 20 most impersonated businesses according to the BBB,
1. Publisher’s Clearinghouse
2. U. S. Postal Service
3. PayPal
4. Amazon
5. Spectrum
6. Walmart
7. Norton
8. Geek Squad
9. Microsoft
10. Medicare
11. Facebook
12. Advance America
13. McAfee
14. Better Business Bureau
15. Apple
16. Macy’s
17. Tie: Capital One/Costco/Geek Tech
18. Bank of America
19. Wayfair
20. Wells Fargo
The BBB offers ten general tips for scam avoidance:
- Don’t make any quick purchases from a website you know nothing about. Check them out through a reputable scam-checker website.
- Never share personal details with someone you meet online. Especially if you have never met them in person.
- Don’t click on links or attachments on unsolicited emails or text messages.
- Just because a website or email looks official does not mean it is. Even Caller ID can be faked. Question everything. Double check through a third party.
- Don’t buy online unless the transaction is secure. Make sure the website has “https” in the URL (the s is for “secure”) and a small lock icon on the address bar. However, even secure websites can be fraudulent. Again, double check.
- Keep up with current red flags, like lack of professionalism, money asked for upfront, or asking for personal information.
- Never share your social security number or driver’s license number.
- Don’t give in to pressure sales.
- If they ask to be paid via untraceable means like gift cards, that is another red flag.
- Check that the business has proper identification, licensing and insurance.
Scams hurt both consumers and businesses by undermining trust in the marketplace. They also undermine a buyer’s sense of self, affecting their mental health. The best way to preserve a healthy trust in the marketplace is by being an informed and proactive buyer who makes a point of dealing with ethical businesses working to protect their customers from scammers.
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