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Protecting yourself from online scams

Better Business Bureau offers an online scam tracker to help protect consumers information.

GOLDEN VALLEY, Minn. - Online purchase scams are now the riskiest form of consumer fraud, according to a new report from Better Business Bureau (BBB). In 2017, consumers reported more than 47,000 scams to BBB Scam Tracker. BBB analyzed this information using its unique ‘BBB Scam Risk Index’ to determine the riskiest scams based on exposure, susceptibility, and monetary loss. The findings show some significant changes from 2016.

1. The numbers are in. BBB has compiled national statistics on reports last year to BBB Scam Tracker. What are the biggest takeaways? First, that people are reporting fraudulent experiences to BBB Scam Tracker, which was our hope. We had 47,000 reports nationally last year, which is still only a tiny percentage as far as the actual instances of attempted fraud. A sliver of a sliver.

2. BBB Scam Tracker is an online fraud reporting tool. When did Scam Tracker debut? Scam Tracker went live in 2015 and we wanted it to be two things: first, a place people could report suspicious or fraudulent interactions, and second, a place where people could go to learn about fraud in their area. Our interactive map lets you zoom in and see what type of fraud is occurring locally or nationally.

3. The top-reported scam in 2017 was? Online purchase scams. This is when people either shop on fraudulent websites or purchase products that sell knockoff goods. This scam includes online puppy scams and free trial offers, which have often proven problematic. People find they’re being charged beyond the trial period. Even after they’ve tried to cancel, in many cases.

4. There was some good news, though. Tell us more about that. We saw a big decrease in the number of IRS scams in 2017. We think this was largely due to a large call center in India that was raided by authorities last year. This scam is still out there, but less prevalent. Additionally, the percentage of those reporting who actually lost money to a scam fell last year (from 18.8 percent in 2016 to 15.8 percent in 2017), and we also saw a decrease in the median monetary loss (a 17% decrease).

5. Any other takeaways? Young people continue to be at higher risk of falling victim to scams. Susceptibility to fraud decreases with age, although the amount of money lost increases when victims are older.

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