BBB Tip of the Week: Better Business Bureau 2019 risk report

Employment scams were the riskiest con of 2019, according to the latest report from the Better Business Bureau. This scam topped the list for both men and women, and included students, veterans and their spouses, according to data from the BBB Scam Tracker Risk Report (BBB.org/RiskReport). Also, according to the report, the top payment method was credit cards and the most frequent means of contact was by telephone.

The BBB Scam Tracker Risk Report uses the BBB Risk Index; a three-dimensional measure of scam risk based on exposure, susceptibility and monetary loss. The three can be broken down into questions such as exposure: How likely are you to be targeted by a particular scam? Susceptibility: What are your odds of losing money when exposed? And finally, Monetary loss: If you lose money, how big will your losses be?

The risk report has been published annually since 2016 and has provided Better Business Bureaus across the country with statistics and information to help elevate the education of consumers and businesses. In 2019, 37,283 scams were reported with an average loss of $160, which was a 5.3% increase from 2018.

Although employment scams remained the riskiest for the second year in a row, the surprise in the data was cryptocurrency in the No. 2 spot, with a median dollar loss of $3,000. Cryptocurrency scams occur when the virtual coins are purchased from, traded by or stored with a person or exchange site that turns out to be fraudulent. Sometimes these digital assets are purchased as part of a fraudulent initial coin offering, or ICO, in which investors are scammed into paying money or trading digital assets for a company or product that never materializes.

Moving to the third spot in the riskiest scams of 2019 was the online purchase scam. This situation can happen in several different ways when a buyer makes an online purchase from an individual or company.

Age seems to be a factor in both the susceptibility and dollars lost. For the younger consumers, ages 18 to 24, they have a susceptibility of 45.3% and a median dollar loss of $100. Inversely, the opposite is true for consumers aged 65 and older, who have a susceptibility of 23.0% and an average dollar loss of $350. As we look at gender, men have a susceptibility of 35.5% and a median loss of $239, and women have a susceptibility of 35.7% with a median loss of $130. In 2019, percentages of susceptibility and median dollars lost increased over the same time period in 2018.

Better Business Bureau has tips and information on how to protect you, your identity and money. Find more information on businesses you can trust at www.bbb.org. If you are searching for a job, we have red flags to look for and tips on how to avoid having your personal information or money.

How the job scam works

In 2019, job scams often impersonated Amazon. The reason why? Amazon was frequently in the news with its high-profile search for a second headquarters. In 2017, only 24 BBB Scam Tracker reports were employment scams that mentioned Amazon. In 2018, that jumped to 564.

Amazon scams and other employment cons typically follow the same patterns. Scammers contact victims by finding resumes posted online, posting phony job listings or cold emailing targets. In most versions, the target starts corresponding with the “business” about a job opening. The pay is good, you can start immediately and they don’t even require an in-person interview. The catch of course is that job doesn’t really exist. The scammer may ask you to pay upfront for training or a background check. In other versions, the con artist asks you to deposit a (fake) check and wire back part of the money. They may even get your bank account number to “direct deposit” your paycheck.

How to spot the scam

Be cautious of any job that asks you to share personal information or pay money. Scammers will often use the guise of running a credit check, setting up direct deposit or paying for training.

If a job looks suspicious, search for it online. Google the title and company name. If the result comes up in many other cities with the exact same post, it may be a scam.

Check out the business’s website. Scammers often falsely use the names of real businesses. Check on the business’s site or give it a call to confirm the position exists.

For more information

To learn more about scams in general, go to BBB.org/ScamTips. If you’ve been targeted by this scam, help others avoid the same problem by reporting your experience on the BBB.org/ScamTracker.