Online scams on the rise says recent report

The methods used by fraudsters are evolving along with technology.

That's according to a recent study by the Better Business Bureau (BBB), which says scams are increasingly being perpetrated online.

In fact, the report found an 87 per cent increase in online scams since 2015. In the same period, phone scams dropped by 42 per cent.

So far this year 55 per cent of scams reported to the BBB are online, with 75 per cent of people targeted losing money.

Scams via text message make of 30 per cent of those reported this year, with a median dollar loss of $800.

“We've seen scammers become more sophisticated with their tactics,” explained Kristin Matthews, the BBB Atlantic's marketing and communications manager.

“Because during the COVID-19 pandemic … there wasn't really much to do and that led a lot of people online, whether it was social media or shopping online, so I think that's one of the reasons online shopping scams have increased so much in the last few years.”

In fact, shopping scams make up 30 per cent of the scams reported to the BBB this year with 71.6 per cent saying they lost money.

“The median dollar loss for these online purchase scams is about $114 so far in 2022, but unfortunately the year is not over and that could continue to increase,” Matthews told CityNews Halifax.

She said there's a common assumption that its largely seniors who fall victim to fraudsters, but that's not always the case.

“What we actually found in this report is that the age group of 18 to 24, they reported the highest increase in median dollar losses. So in 2021 this age group usually spent about $124 when it came to an online purchase scam, and now that's risen to $156 in 2022,” she explained.

“So we've noticed this age group of 18 to 24 are becoming more susceptible to these scams and are unfortunately losing more money than any age group.”

There's also been a huge increase in online impersonation scams.

“So you get an email from somebody claiming to be from a trusted company, maybe they're telling you to apply for a certain job or something along those lines,” Matthews said. 

“We also have cases where scammers are hacking your friend's Facebook or Instagram accounts, then pretending to be them and reaching out to other people, scamming them and hacking their accounts.”

We also have to be on the lookout for cryptocurrency scams, romance scams, investment scams, employment scams, and government grant scams.

Matthews said people don't report it when they fall victim.

“There's a huge shame factor there,” she stated. “The emotional toll of going through a scam takes a lot out of people and sometimes they want to put it in the rearview mirror and forget that it ever happened.”

“But it's so important to report these scams because that's the way we do this research, that's the way we can warn people about what types of scams are going on.”

You can report a scam to the BBB through its Scam Tracker, which is an interactive map where you can find what scams are going on in our area. 

You can also report them to the Canadian Anti-Fraud Centre, or local police if you've lost money or your identity has been compromised.

The BBB is offering up the following tips to help avoid losing money to online scams:

• If the deal looks too good to be true, it probably is. Price was the top motivating factor for people who made a purchase and then lost money. Don't shop on price alone.
• Be careful purchasing sought-after products. Scammers offer hard-to-find items and highly sought-after products at great prices.
• Before you buy, do your research with a trustworthy source. One of the best ways to avoid scams is to verify the offer and avoid making snap buying decisions.
• Avoid making quick purchases on social media. 25% of survey respondents reported being targeted while browsing social media.
• Use secure and traceable transactions. Avoid paying by wire transfer, prepaid money card, gift card, or other non-traditional payment methods.
• Choose your online payment system carefully. Take some time to understand the rules around your online payment system; not all will reimburse money if you get scammed.
• 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 it is. For example, if a business displays a BBB Accredited Business seal, you can verify its legitimacy by going to BBB.org and looking up the company yourself.
• Ask for verification and take time to do research with a trustworthy source. People who lost money to a scam were almost twice as likely as those who avoided losing money to say the scammer used impersonation as a tactic.
• Be skeptical about anyone who reaches out to you unsolicited. Survey respondents told us scammers produced fake business cards, websites, credentials, ratings and more to convince them they were legitimate.