Online purchase scams are now the riskiest form of consumer fraud, according to a new report from the Better Business Bureau.
In 2017, consumers reported more than 47,000 scams to BBB Scam Tracker (BBB.org/ScamTracker). 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, released for National Consumer Protection Week (U.S.) and Fraud Prevention Month (Canada), show some significant changes from 2016:
- Tax collection scams decreased 60% in volume of reports, likely due to the arrest in India in 2016 of a the ringleader of a network of call centers primarily responsible for the IRS scam
- Online purchase scams jumped from the 4th riskiest scam to the top spot, likely due to an increase in exposure
- Home improvement scams dropped from 1st to 6th riskiest, despite a number of natural disasters that traditionally bring out “storm-chasers”
There was good news in the 2017 BBB Scam Tracker Annual Risk Report: New Trends in Scam Risk from the BBB Institute for Marketplace Trust (BBB Institute).
“Although we saw an increase in total scam reports, the good news is that susceptibility was down,” said Melissa Trumpower, director of programs and operations with the BBB Institute and co-author of 2017 BBB Scam Tracker Annual Risk Report: New Trends in Scam Risk. “The percentage of those reporting who actually lost money to a scam fell from 18.8 percent in 2016 to 15.8 percent in 2017. We also saw a 17% decrease in the median monetary loss, down to $228.”
One interesting phenomenon from 2017 was the prevalence of a new scam, dubbed “Can you hear me?” for the opening line that was extremely common early in the year. “BBB Scam Tracker received more than 10,000 reports on the ‘Can you hear me?’ scam, but virtually none of those reporting could point to an actual monetary loss due to the calls,” notes co-author Dr. Rubens Pessanha, senior director of market research, insights, and strategy with the Council of Better Business Bureaus. “We concluded there was no credible evidence to categorize the calls as scams, and controlled for them in the data analysis to determine the riskiest scams of 2017.”
The most common online purchase scams in 2017 were related to pets, clothing, cosmetics, electronics, and automobiles. The offer of free trials was a common tactic for these online purchases: 67% of scams involving cosmetics and 60% involving nutrition products mentioned a free trial opportunity.
Another significant increase was in the category of investment scams, which tend to target older age groups and come with a higher average monetary loss. This scam type jumped from the 6thriskiest in 2016 to the 2nd riskiest in 2017.
Home improvement scams dropped from the riskiest scam in 2016 to 6th riskiest in 2017. Surprisingly, the drop occurred in a year marked by several weather-related disasters, including hurricanes Irma and Harvey. BBB believes this may have been due to a significant increase in information from the media and consumer protection groups around home improvement scams following disasters.
- Online purchase scam (up from #4 in 2016)
- Investment scam (up from #6 in 2016)
- Employment scam (no change)
- Advance fee loan scam (up from #5 in 2016)
- Fake check scam (down from #2 in 2016)
- Home improvement scam (down from #1 in 2016)
- Tech support scam (up from #8 in 2016)
- Travel/vacation scam (new to top 10, #12 in 2016)
- Family/friend emergency scam (no change)
- Government grant scam (new to top 10, #11 in 2016)
Travel and vacation scams joined the list, with top destinations mentioned in the scams: Orlando/Florida, Disney, Mexico/Cancun, and the Bahamas. Also new to the top ten is the government grant scam. Two scams left the top ten list: romance scams and sweepstakes/lottery/prize scams.
One of the most common tactics of scammers is impersonation, where the scammer pretends to be a legitimate business that is well known and trusted by the consumer. The top legitimate organizations that were used by scammers in 2017 were: U.S. Internal Revenue Service; U.S. Government (Grant/Treasury/Reserve/Medicare); Better Business Bureau; Publishers Clearing House; and Microsoft.
Even though a phone call is the primary means of contact for all the reports, in the last year, websites took over as the top mean of contact for scams with monetary loss, which means that the susceptibility on the web is higher than phone calls overall.
Regardless of the scam, scammers often rely on the following tactics:
- The promise of getting a “great deal” (which is often too good to be true);
- Pressure to respond immediately with offers that are time sensitive and prices that “can’t be guaranteed;”
- Intimidation (for example, “You are under federal investigation”; “You will be arrested within one hour unless you call this number”); and
- Isolation, which aims to force a decision without others’ opinions.
Woman airlifted from crash on Sheep Creek and El Mirage Roads Saturday night
ADELANTO, Calif. (VVNG.com) — Several people were injured in a T-bone crash at the intersection of Sheep Creek near El Mirage Roads Saturday night.
According to the California Highway Patrol incident logs, the traffic accident was reported at about 9:30 PM on August 8th and involved a silver Chevy Tahoe and a silver Ford F-150.
San Bernardino County Firefighters responded and located the Tahoe with major damage to the passenger side and used extrication tools to remove a young child. A female adult sitting in the front passenger was critically injured and a helicopter was requested to airlift her to a trauma center.
A CHP helicopter H-80 landed in the roadway and subsequently flew the injured woman to Loma Linda University Medical Center.
Jessica Christopherson was on her way home from work when she drove up to the accident and heard children inside the SUV screaming and pulled over to call 911. Jessica said the little girl’s leg was pinned but when firefighters removed her from the vehicle she only had some scrapes.
According to Jessica, the dad in the Tahoe was okay and another little girl was shaken up and all three were taken by ground ambulance to LLUMC. The driver of the pickup truck sustained a gash to the back of his head.
Jessica told VVNG she’s almost been involved in several accidents on El Mirage Road due to people speeding and would like to see at least a 3-way stop sign instead of just one.
The California Highway Patrol Victorville Station is handling the investigation into the cause of the crash.
Man found dead at High Desert Inn Motel in Hesperia
HESPERIA, Calif. (VVNG.com) — Police said no foul play was suspected after a man was found dead at the High Desert Inn.
On Thursday, August 6, 2020, at approximately 1:02 a.m., deputies responded to High Desert Inn, located at 14320 Main Street, in reference to a medical aid call.
Sheriff’s spokeswoman Taylor Reynolds said A 59-year-old male was found unresponsive at the incident location. “Deputies did not discover any signs of foul play,” stated Reynolds.
The spokeswoman said the investigation is being handled by the Coroner’s Division and had no other information available for release.
At least 3 killed, 3 airlifted in 15 freeway crash near Baker
BAKER, Calif. (VVNG.com) – At least three people have been confirmed killed, and three others were airlifted from a crash that shut down a stretch of 15 freeway Saturday evening.
It happened just after 7 p.m. on the northbound I-15 near Baker after an SUV crashed into the back of a semi truck and caught fire.
When firefighters arrived on scene they located the vehicle fully involved in fire with an unknown amount occupants still trapped inside.
Scanner traffic indicated that the fire quickly spread from the SUV to the semi truck, which was described as a 53-foot general cargo truck loaded with clothing.
Scanner traffic also indicated that three helicopters landed on the freeway to transport a 15-year-old, a child, and the child’s mother to Las Vegas University Medical Center.
In all, 1 person sustained critical injuries, 3 others sustained moderate injuries, and at least 3 people were pronounced deceased onscene with a possible fourth person still in the wreckage, scanner traffic reported.
Firefighters had a knock-down of the fire at about 9:45 p.m.
The identification of the deceased is not expected to be released until next-of-kin has been notified.
Officers from the CHP Barstow Station are handling the investigation into the cause of the accident.
- Woman airlifted from crash on Sheep Creek and El Mirage Roads Saturday night
- Man found dead at High Desert Inn Motel in Hesperia
- At least 3 killed, 3 airlifted in 15 freeway crash near Baker
- Motorcycle crash shuts down 15 Freeway in Hesperia
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