The Better Business Bureau has released its 2023 Scam Tracker Risk Report, which shows that investment scams are among the costliest scams affecting Canadians.
The report, released on Monday, ranks investment and cryptocurrency scams together, as most crypto scams involve some type of bogus investment scheme. The BBB says 80.4 percent of people who reported a fraudulent investment or cryptocurrency scam to the BBB Scam Tracker last year lost money. The median amount lost was $3,800, the highest on the top 10 list of riskiest consumer scams.
Crypto and investment scams are most commonly found on social media, says the BBB’s Jadyn Yelle.
“They (the victims) are promised high returns on risk-free investments, but that’s not how it ends for them,” she says. “Usually, what ends up happening after they invest in an account with cryptocurrency, they’re not able to get any of their funds back if it’s a scam.”
Employment scams are the second riskiest behind investment and crypto scams. The BBB says the percentage of reports for this type of scam rose to 14.8 percent in 2023. The reported median dollar loss for job scams increased from $1,500 in 2022 to $1,995 in 2023. , with investment and cryptocurrency scams that tend to target adults 45 and older.
“In this case, people apply for jobs and they believe they’re either applying for a new position or they’ve just been hired to a new position, but what they’ve really done is give out their personal information or money for training give. or new equipment,” says Yelle. “People who are looking for work are considered vulnerable. They will pay money to secure a job, and unfortunately it’s not a real job.”
Romance scams also climbed the list to fifth in 2023 from seventh in 2022, largely because more people reported being scammed out of money. The percentage of those who reported losing money to romance scams rose 308.1 percent in 2023, with median losses of $3,600, up 155 percent from the previous year.
Scams can target anyone of any age and anyone can fall prey to a scammer. The BBB’s report found that young adults ages 18 to 24 lost more money on average than any other demographic, with a median dollar loss of $155, followed by seniors 65 and older, who had a median loss of $109. Women were more likely to report scams to the BBB, but men reported a higher median dollar loss.
General tips to avoid a scam
Avoid making quick purchases while browsing social media.
“Reports of scams perpetrated via social media increased by 63.8 percent from 2022 to 2023,” says the BBB. “Take the time to research the website offering that great deal to make sure it’s not fake.”
Be very careful with someone you met online.
“Make sure you don’t share personal details with anyone you haven’t met in person,” says the BBB. “If they start asking for money or offer a no-risk investment opportunity, that’s a red flag.”
Do not click on links or open attachments in unsolicited email or text messages.
“If the person claims to be someone you know or a well-known organization, contact the person directly or go directly to your account to confirm the details,” the BBB says. “Impersonation has been reported as the most common tactic used to commit scams.”
Don’t believe everything you see or read.
“Scammers are great at mimicking official stamps, fonts and other details. Just because a website or email looks official doesn’t mean it is. Even caller ID can be spoofed,” the bureau says.
Take precautions when shopping online.
The BBB has three tips to make your online shopping safer:
Don’t buy based on price alone. Scammers offer hard-to-find products at great prices. Do not 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 in the address bar. However, even secure websites can be deceptive. Do more research on the products and the business before making the purchase.
Know the common red flags of scams.
Here are some common red flags to look out for:
The offer sounds too good to be true. The person insists that you act immediately or the deal will end soon. Someone asks you to deposit money into a Bitcoin ATM or sends a check and asks you to deposit it and then transfer the funds. They require an upfront payment before a service is provided.
Never disclose personally identifiable information to an unsolicited contact.
“If someone asks you to share your SIN or your driver’s license number, consider this a red flag and proceed with caution,” says the BBB.
Take your time. Don’t be pressured to act immediately.
“Instead, do your research or discuss the situation with a third party,” says the BBB.
Use secure, traceable transactions when making payments for goods, services, taxes and debts.
“For example, prepaid/gift cards cannot be traced. They are intended to be used as gifts, not as payment,” warns the BBB.
Whenever possible, work with businesses that have proper identification, licensing and insurance.
“First, research the company at bbb.org.”
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
UnCirculars – Cutting through the noise, delivering unbiased crypto news
