Scams related to cryptocurrency jumped from the fourth riskiest scam in 2020 to the most riskiest in 2021, according to the Better Business Bureau Risk Index.
Although cryptocurrency scams made up only 4.7% of the scams reported to BBB Scam Tracker in 2021, the average median dollar loss reported for these scams was $1,500, much higher than the overall median dollar loss of $169 for all scam types.
“Scammers shift their tactics constantly and appear to have expanded their use of cryptocurrency to perpetrate fraud,” said Melissa Lanning Trumpower, executive director of the BBB Institute for Marketplace Trust, which produced the 2021 BBB Scam Tracker Risk Report.
“Cryptocurrency scams were riskier in 2021 with almost 70% of those targeted by this scam type losing money and a reported median dollar loss of $1,500. Scammers are using social media and other means to promise investment opportunities with great returns and low risks, which is a huge red flag. We received many reports of people being targeted on a variety of social media platforms after their friends’ accounts were hacked.”
Beyond the financial losses associated with scams, BBB research also points out that there are many other non-financial impacts of being targeted by a scam. More than 44% in a BBR survey 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 (55.5%) reported losing time as reported losing money after being targeted by a scam.
Using the BBB Risk Index formula, the Top 10 Riskiest Scams for 2021 were:
Cryptocurrency
Advance Fee Loan
Online Purchase
Home Improvement
Phishing
Counterfeit Products
Employment
Fake Invoices and Supplier Bills
Credit cards
Sweepstakes and Lotteries
