BBB releases 2021 Scam Tracker Report with significant increase in cryptocurrency scams

CHARLOTTE — The Better Business Bureau Scam Tracker Risk Report was released on Friday, with online purchase scams taking the top spot followed by those related to cryptocurrency.

Online purchase scams made up 37.3% of all scams reported to BBB Scam Tracker in 2021, with 74.9% reporting losing money.

Cryptocurrency scams made up only 1.9% of scams reported, but the average amount of money lost in the scams was $1,200, much higher than the $169 average lost across all other scam types.

Cryptocurrency was the seventh riskiest scam in 2020 and jumped to second place in 2021.

Employment scams dropped in 2021 from second-riskiest to third. The number of reported scams increased from 7.1% in 2020 to 7.8% in 2021, although the average loss of money dropped slightly.

“Scammers shift their tactics constantly and appear to have expanded their use of cryptocurrency to perpetrate fraud,” said Tom Bartholomy, president and CEO of BBB Charlotte.

Bartholomy said scammers are using social media to promise investment opportunities with great returns and low risks, which should be a red flag.

“We received many reports of people being targeted on a variety of social media platforms after their friends’ accounts were hacked,” said Bartholomy.

While vulnerability to these scams dropped in 2021, the average amount of money lost rose 47%.

Credit cards remained the highest reported payment method for money loss, followed by online payment systems.

Money lost through payment made via cryptocurrency more than doubled from 2020.

Bartholomy explained financial loss is not the only impact of scams.

The report says more than 44% of people reported losing confidence and peace of mind due to the emotional impact of being targeted by a scam and 35% reported losing personal information.

The report also showed almost the same percentage of people, 55%, reported a loss of time as they did a loss of money after being targeted by a scam.

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

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