Online purchase scams are now the riskiest form of consumer fraud, according to a new report from the Better Business Bureau. In 2017, consumers reported more than 47,000 scams to BBB Scam Tracker (BBB.org/ScamTracker).
The most common online purchase scams in 2017 were related to pets, clothing, cosmetics, electronics, and automobiles. The offer of free trials was a common tactic for these online purchases: 67% of scams involving cosmetics and 60% involving nutrition products mentioned a free trial opportunity.
- Online purchase scams jumped from the 4th riskiest scam to the top spot, likely due to an increase in exposure.
- Tax collection scams decreased 60% in volume of reports, likely due to the arrest in India in 2016 of the ringleader of a network of call centers primarily responsible for the IRS scam
- Home improvement scams dropped from 1st to 6th riskiest, despite a number of natural disasters that traditionally bring out “stormchasers”
Because they spend so much time and money making online purchases, young people continue to be at higher risk for scams, and susceptibility decreases with age, although dollars lost increases when victims are older.
“Although we saw an increase in total scam reports, the good news is that susceptibility was down,” said the BBB's Melissa Trumpower. “The percentage of those reporting who actually lost money to a scam fell from 18.8 percent in 2016 to 15.8 percent in 2017. We also saw a 17% decrease in the median monetary loss, down to $228.”
The top ten riskiest scams in 2017 were:
- Online purchase scam (up from #4 in 2016)
- Investment scam (up from #6 in 2016)
- Employment scam (no change)
- Advance fee loan scam (up from #5 in 2016)
- Fake check scam (down from #2 in 2016)
- Home improvement scam (down from #1 in 2016)
- Tech support scam (up from #8 in 2016)
- Travel/vacation scam (new to top 10, #12 in 2016)
- Family/friend emergency scam (no change)
- Government grant scam (new to top 10, #11 in 2016)