UNDATED, MI (WKZO AM/FM) — A new report published by the Better Business Bureau documents what are being called the “riskiest” types of scams through the year 2019.
According to the BBB, the study is meant to understand “how scams are being perpetrated, who is being targeted, which scams have the greatest impact,” and more.
The top five scams considered the riskiest can be read in full below:
- 1. Employment Scams – A job offer comes with high pay, options to work remotely, and flexible hours. To get the job, a candidate must complete forms that require personal and/ or sensitive information and may be required to “purchase equipment” with part of the proceeds of what turns out to be a fake check.
- 2. Cryptocurrency Scams – Cryptocurrency is purchased from, traded by, or stored with a person or exchange site that turns out to be fraudulent. Sometimes these digital assets are purchased as part of a fraudulent Initial Coin Offering (ICO), in which investors are scammed into paying money or trading digital assets for a company or product that never materializes.
- 3. Online Purchase Scams – A buyer makes a purchase online from an individual seller or company, but the item never arrives. Or, in other scenarios, a person sells an item online, but the check received for payment is fake.
- 4. Fake Check/ Money Order Scams – A check is sent to a consumer that contains an “accidental overpayment” or some other overage. The consumer is asked to wire back the excess money. The check appears real and “clears,” so the consumer thinks it is okay to withdraw funds, but weeks later the bank discovers the check is phony. The consumer now owes the withdrawn funds to the bank plus penalties and fees.
- 5. Advance Fee Loan Scams – A loan is “guaranteed,” but comes with upfront charges, including taxes or “processing fees.” When the charges are paid, the loan never materializes and the applicant is left with larger debts.
The data indicates that almost 40,000 reports of scams were filed with the BBB in 2019 alone.
Other types of scams can include callers masquerading as company officials, such as Publishers Clearing House. In this case, a scam artist would attempt to extract personal information through claims of winning a prize.
The BBB also notes that scammers have been known to impersonate travel agents, government agencies, and the Social Security Administration.
Of all the organizations known to be impersonated, the Social Security Administration is the agency that is used most often – almost 2,000 reports were filed last year.
In Kalamazoo, Sheriff Richard Fuller says that he himself has been contacted by a phone scam this year.
“I got a phone call reminding me that my warranty is about up on my vehicle from a company that I have no warranty with, and they wanted to take my credit card over the phone and get my payment right now,” Fuller said. “Just be alert and know what you owe.”
On a statewide level, Attorney General Dana Nessel warns that email scammers are using the coronavirus to get personal information from victims. Still others are masquerading as health officials.
“If you are ever asked by an unsolicited caller to give out personal information, don’t do it,” Nessel said. “Hang up the phone immediately and report anything that you suspect might be a scam to our office.”
All suspected scams can be reported to the Better Business Bureau at their official website. Complaints can also be filed with the Attorney General’s office.
The full report from the BBB about 2019 scams can be viewed at this link.
