Cryptocurrency scams climbed to second riskiest in 2021

Online purchase scams remain the riskiest

(Little Rock, AR) Wednesday, March 9, 2022 – The riskiest scams have been revealed again in the 2021 BBB Scam Tracker Risk Report. Online Purchase, Cryptocurrency, Employment, Home Improvement, and Investment scams top the list. Released annually, BBB’s Scam Tracker Risk Report takes scam reports and data from the following year and categorizes them by riskiness.

HIGHLIGHTS

• Scams related to cryptocurrency jumped from the seventh riskiest scam in 2020 to the second riskiest in 2021 
  • Although cryptocurrency scams made up only 1.9% of the scams reported to BBB Scam Tracker^SM in 2021, the average reported median dollar loss reported for these scams was $1,200, much higher than the overall median dollar loss of $169 for all scam types. 
• Online purchase scams maintained the top spot as the riskiest (37.4% of all scams reported to BBB Scam Tracker in 2021) with 74.9% reporting a monetary loss.
• Employment scams dropped in 2021, from second riskiest to third. 
• Regarding age, online purchase scams were the riskiest for all age groups in 2021.
• Cryptocurrency scams were the second riskiest for ages 25–64.
• Employment scams were second riskiest and third riskiest across several age brackets.
• Interestingly, investment scams were third riskiest for ages 18–24 for the first time since BBB began publishing the risk report. 

Representatives of BBB Arkansas say, “Cryptocurrency, new digital technology such as NFT’s (non-fungible tokens), and the rise of financial advice given via social platforms go hand in hand with investment scams. These factors create an environment where it is much easier for scammers to target younger generations.”

• In addition to money, more than 44% reported losing confidence or peace of mind because of the emotional impact of being targeted by a scam, and about 35% reported losing personal information. About the same percentage of people reported losing time as reported losing money (55.5%).

“Time is money, and our data reflect this. We can’t ignore the fact that there are many other non-financial impacts of being targeted by a scam.”

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