CT BBB: 2019 Scam Tracker Risk Report

CROMWELL, Conn. — Two years ago, cryptocurrency scams were just emerging as a problem on BBB Scam Tracker, mostly a subset of investment scams. The Better Business Bureau added cryptocurrency as a scam category in 2019 and it leapt to the second riskiest scam, according to the latest BBB report, New Risks and Emerging Technologies: 2019 BBB Scam Tracker Risk Report (BBB.org/RiskReport). 
Although employment scams remained the riskiest for the second year in a row, the surprise in the data was cryptocurrency in the #2 spot, with a median dollar loss of $3,000. The report is based on data supplied by consumers to BBB Scam TrackerSM (BBB.org/ScamTracker) and uses the BBB Risk Index, a unique algorithm that calculates exposure, susceptibility, and monetary loss to offer a more accurate assessment of scam risk.
Cryptocurrency scams occur when the virtual coins are 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. 
According to the Risk Report, 68.5% of people that reported a cryptocurrency scam lost money, and nearly one-third of these losses (31.0%) involved the cryptocurrency exchange site C2CX. Additionally, 23.4% of individuals said they purchased cryptocurrency as an investment opportunity. 
In August 2019, BBB Serving Connecticut warned consumers about C2CX and ITR (ITResources) after identifying a trend in Scam Tracker submissions and seeing that Connecticut residents had lost over $50,000 to the two foreign companies. 
Unlike money stored in a traditional bank account, which is insured against theft, digital assets such as cryptocurrency cannot be retrieved, and transactions cannot be reversed in the case of theft or cyber hacking. 
The ten riskiest scams of 2019 were: employment, cryptocurrency, online purchase, fake checks/money orders, advance fee loan, romance, home improvement, investment, tech support, and travel/vacation/timeshare.
For more highlights from New Risks and Emerging Technologies: 2019 BBB Scam Tracker Risk Report, download the infographic at BBB.org/RiskReport . 
For the full report, go to BBB.org/RiskReport
To report a scam, go to BBB.org/ScamTracker
To learn more about different scam types, go to BBB.org/ScamTips.  
ABOUT BBB: For more than 100 years, the Better Business Bureau has been helping people find businesses, brands, and charities they can trust. In 2018, people turned to BBB more than 173 million times for BBB Business Profiles on nearly 5.4 million businesses and Charity Reports on 11,000 charities, all available for free at BBB.org. The International Association of Better Business Bureaus is the umbrella organization for the local, independent BBBs in the United States, Canada, and Mexico.






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