Q. What were the most active scams reported to BBB in 2018?
A. Employment scams were the riskiest scams in 2018, according to the latest report from the Better Business Bureau, Tech-Savvy Scammers Work to Con More Victims: 2018 BBB Scam Tracker Risk Report (BBB.org/RiskReport). Employment scams had more instances and higher losses than in previous years when it ranked the third riskiest. The report is based on data supplied by consumers to BBB Scam Tracker. (BBB.org/ScamTracker) and is based on the BBB Risk Index, a unique algorithm that calculates exposure, susceptibility, and monetary loss to offer a more accurate assessment of scam risk.
Jim Winsett of the BBB. "This was a surprise," said Melissa Lanning Trumpower, executive director of the BBB Institute for Marketplace Trust, which produced the report. "It's the first time since we began this report three years ago that one scam dominated across so many demographic subgroups. It was the riskiest scam in three of the six age groups, and for both men and women. It was also the riskiest scam for military families and veterans, and students."
Digging into the Risk Report shows one possible answer: Amazon was in the news a lot in 2018 with its high profile search for a second headquarters. It was also the 6th most impersonated organization mentioned in BBB Scam Tracker reports, after not even making the top 15 in previous years. In 2017, only 24 BBB Scam Tracker reports were employment scams that mentioned Amazon. In 2018, that jumped to 564.
"Scammers are opportunists," says Trumpower. "Whatever is in the news or being talked about on social media, they see as an opening to imposter a recognizable and respected organization or brand." The Internal Revenue Service is the leading impersonated organization, and other government agencies together rank second. Other leading brands that scammers impersonate include Publishers Clearing House, Microsoft, Apple and the Better Business Bureau.
Amazon, a BBB Accredited Business, has only one authorized job application site: amazon.jobs. Any other link is a scam, said Trumpower.
"Employment scams are particularly egregious because they prey on people who are already feeling pinched and may be desperate for work," she said. "If the scam gets far enough, scammers collect the same information that real employers do – address, birth date, Social Security number, bank account – everything needed for identity theft."
The 10 riskiest scams of 2018 were: employment, online purchase, fake checks/money orders, home improvement, advance fee loans, romance, tech support, investment, travel/vacation, and government grant.
There are thousands of new scams every year, and you can't keep up with all of them, but if you can just remember these TEN THINGS, you can avoid most scams and help protect yourself and your family.
1. Never send money to someone you have never met face-to-face. Seriously, just don't ever do it. And really, really don't do it if they ask you to use wire transfer, a prepaid debit card, or a gift card (those cannot be traced and are as good as cash).
2. Don't click on links or open attachments in unsolicited email. Links can download malware onto your computer and/or steal your identity. Be cautious even with email that looks familiar; it could be fake.
3. Don't believe everything you see. Scammers are great at mimicking official seals, fonts, and other details. Just because a website or email looks official does not mean that it is. Even Caller ID can be faked.
4. Don't buy online unless the transaction is secure. Make sure the website has "https" in the URL (the extra s is for "secure") and a small lock icon on the address bar. Even then, the site could be shady. Check out the company first at bbb.org. Read reviews about the quality of the merchandise, and make sure you are not buying cheap and/or counterfeit goods.
5. Be extremely cautious when dealing with anyone you've met online. Scammers use dating websites, Craigslist, social media, and many other sites to reach potential targets. They can quickly feel like a friend or even a romantic partner, but that is part of the con to get you to trust them.
6. Never share personally identifiable information with someone who has contacted you unsolicited, whether it's over the phone, by email, on social media, even at your front door. This includes banking and credit card information, your birthdate, and Social Security/Social Insurance numbers.
7. Don't be pressured to act immediately. Scammers typically try to make you think something is scarce or a limited time offer. They want to push you into action before you have time to think or to discuss it with a family member, friend, or financial advisor. High-pressure sales tactics are also used by some legitimate businesses, but it's never a good idea to make an important decision quickly.
8. Use secure, traceable transactions when making payments for goods, services, taxes, and debts. Do not pay by wire transfer, prepaid money card, gift card, or other non-traditional payment method. Say no to cash-only deals, high pressure sales tactics, high upfront payments, overpayments, and handshake deals without a contract.
9. Whenever possible, work with local businesses that have proper identification, licensing, and insurance, especially contractors who will be coming into your home or anyone dealing with your money or sensitive information. Check them out at bbb.org to see what other consumers have experienced.
10. Be cautious about what you share on social media and consider only connecting with people you already know. Be sure to use privacy settings on all social media and online accounts. Imposters often get information about their targets from their online interactions, and can make themselves sound like a friend or family member because they know so much about you.
Jim Winsett is president of the Better Business Bureau in Chattanooga.