BBB warns people of color more vulnerable to lose money when targeted by scammers

A new analysis of consumer scam reports submitted to the Better Business Bureau (BBB) indicates a larger portion of Black, Hispanic, Asian and other racial minorities are more likely to lose money when targeted by scammers.

Researchers from the University of Minnesota and the University of Southern California used data collected through the BBB Scam Tracker consumer reporting platform between January 2017 and September 2020. They analyzed over 167,000 reported scams, specifically between the time of March 2020 and September 2020. The report provides a broader perspective than previous analyses about how scams impact minority communities.

According to the BBB, the data analysis shows women were much more likely than men to report an attempted scam and were twice as likely as men to report money loss; however, men who did lose money lost higher amounts than women.

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Age did not appear to have a significant effect on the rate of monetary loss, though older victims tended to pay more once victimized, according to the research.

Consumers reporting from zip codes with a population less likely to have GED or high school equivalent education are more likely to lose money when targeted by scammers, the data showed. However, the BBB says none of these factors is associated with higher dollar losses. In fact, those reporting from zip codes with a higher-than-average median income are more likely to be victimized and lose higher amounts of money.

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In addition to this analysis, 30% of reported scams included a monetary loss, which is consistent with findings from the annual BBB Scam Tracker Risk Report. Scams involving online purchases were persistently the most common scam type reported, followed by phishing requests. Both of these scam types spiked in 2020 during the COVID-19 pandemic, the BBB says.

There was a notable increase in reporting of scams during the March-September 2020 period, particularly for online purchase and phishing scams, as well as all scams related to COVID-19. The rise and fall of COVID-19 scams coincided with the period of intense shortages, with the most common virus scam in the U.S. involving the sale of masks and other personal protective equipment.

To report a scam, click here.