From the Bureau: More youths than seniors being scammed

Approximately 34 percent of the population of Iowa is over the age of 50. Guarding older adults from scams is a critical component of consumer protection.

A somewhat surprising national finding, though, is that young people, ages 18 to 24, reported losing more money to scams than older age groups, according to a new report published by the BBB Institute for Marketplace Trust, the International Association of Better Business Bureaus’ educational foundation.

The study revealed how scams are impacting the 18-to-24-age group and highlights scam types, tactics and trends based on data submitted to BBB Scam Tracker between Jan. 1, 2022, and June 24, 2023.

The study found that many younger victims may lack the financial sophistication of older groups. But the types of fraud they frequently encounter is vastly different from those seniors are exposed to.

Both young and older victims sometimes don’t ask for help until it is too late. Recognizing the signs of current or impending fraud is particularly important.

Riskiest scams

Employment scams continue to be the riskiest scams for ages 18 to 24, making up almost 30 percent of scams reported to the BBB Scam Tracker.

This scam type also had the highest median dollar loss — $1,819 — of all scam types reported by this age group

The 10 riskiest scams for the age group were, in order: employment; online purchase; cryptocurrency; rental, investment; fake check/money order; phishing; romance; advance fee loan; and credit repair/debt relief.

“It’s important that we spread awareness about employment scams, especially to younger people,” said BBB Institute Executive Director Melissa Lanning Trumpower.

“About 43 percent of employment scams reported by this age group included a mention of fake check scams. Many reported being told to deposit checks into their accounts and then transfer funds to a vendor to pay for training or office equipment.

“By the time they realized the check was bad, the money was gone. We must make sure young people understand it takes time for checks to clear and to be sure they’re good.”

About 19 percent of employment scams from this age group mentioned schemes involving inspecting or reshipping packages. The enticing offer of employment with a big paycheck leads many unwittingly become involved in criminal activity by processing and sending packages with high-ticket consumer goods purchased with stolen credit card information.

Online purchase scams made up 29.1 percent of all reports submitted by 18- to 24-year-olds, with 81.4 percent reporting a monetary loss. Imposter scams are frequently a factor as orders are made through a site that resembles a well-known company or product.

Contact method

The 18- to 24-age group also was more likely to report being targeted by text message or internet messaging than other age groups.

The contact methods with the highest likelihood of a monetary loss (susceptibility) included website and social media.

The contact methods with the highest reported median dollar loss were phone calls, text messages and in person.

This group reported a higher percentage of scams targeting them on Instagram and X (Twitter) than other age groups.

Payment method

Ages 18 to 24 also reported a higher percentage of scams via online payment system and bank account debit.

The payment methods for this age group with the highest median dollar loss were wire transfer ($2,150), check ($1,500) and cryptocurrency ($1,200).

Bobby Hansen is regional director for the Better Business Bureau Cedar Rapids office. Comments: (319) 365-1190; info@dm.bbb.org.