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McDowell News Feature
ASHEVILLE — Investment fraud involving cryptocurrencies is now the most dangerous type of fraud, according to a new report from the Better Business Bureau. More than 80% of people who have been targeted by this type of scam have reported losing money through BBB Scam Tracker. The median dollar loss was also the second largest at $3,800.
Investment fraud can take many forms, including pressure to buy, trade, or store digital assets (cryptocurrency) on fraudulent exchanges. Investment scams and cryptocurrency scams both made the list of the 10 most dangerous scams of 2023. This year, we have combined them because most crypto scams involve some kind of investment opportunity.
Reports of employment fraud remained the second most dangerous type of fraud in 2023. The number of reports increased by 54.2% compared to the previous year. The median loss from employment fraud was $1,995, significantly higher than the overall median loss of $100 reported across all fraud types.
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Online purchase (shopping) fraud is no longer the most dangerous fraud type for the first time since 2019, taking third place on the list. This year, 41.9% of scams submitted to the BBB Scam Tracker were online purchase scams, and 82.6% reported a loss of money.
“In 2023, investment fraud and crypto fraud will have a particularly high impact on people over 45,” said Melissa Lanning Trumppower, executive director of the BBB Marketplace Trust Institute, which produced the 2023 BBB Fraud Tracker Risk Report. “I gave them,” he said. She says, “People should always be wary of opportunities that seem too good to be true. There are no risk-free investment opportunities.”
Key findings of the report include:
Online fraud continues to rise, accounting for 68.4% of all reports. What’s even more concerning is that online fraud is more likely to result in reported financial losses than fraud committed in person or over the phone.
Reported overall susceptibility (percentage of reports with financial loss) increased by 27.8% from 2022 to 2023. The median reported overall dollar loss decreased by 41.5%.
2 years in a rowpeople ages 18 to 24 reported the highest median loss of all age groups ($155).
Percentage of people who report being attractive The rate of contact with scammers via social media increased by 63.8% from 2022 to 2023.
Credit card remains the most commonly reported payment method Financial losses occur, followed by direct debits and online payment systems. Reports of direct debits with financial losses increased by 66.4%.
Employment fraud ranks #1 Those aged 18 to 44 are most at risk. Investment/cryptocurrency fraud was the highest risk for the 45+ age group.
According to our surveyPeople between the ages of 18 and 44 cited anxiety/stress as the number one emotion they felt after being the target of a scam, while those 45 and older cited anger as the number one emotion they felt.
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