BBB reports Texans lost $10M in fraudulent report in 2024
AUSTIN (KXAN) -- The Better Business Bureau reported on Monday it analyzed over 6,000 "BBB scam tracker" reports by Texans throughout 2024, according to a BBB press release.
The analysis revealed Texans reported losing over $10 million to fraud, setting an all-time high since the "BBB scam tracker" was created in 2014.
The BBB said that one-third of reports included an average loss of $150, a slightly higher average loss than in 2023.
Consumers between 45 years old and 54 years old were among those that reported the highest total losses at 2.8 million. Right behind that age group were consumers between 55 years old and 64 years old at 2.7 million lost, according to the press release.
“Over the past few years, our data is showing a sharp increase in scam activity resulting in millions of dollars being lost,” said Heather Massey, vice president of communications and community relations at Better Business Bureau serving the Heart of Texas. “In just two years, scam reports have doubled, and losses have increased by more than 430 percent.”
The BBB revealed the top five fraudulent reports that impacted Texans in 2024.
Investment/Cryptocurrency
Investment and cryptocurrency fraudulent reports were the costliest for Texans in 2024, the total loss was $3.1 million, according to the nonprofit organization.
The nonprofit said that the average loss per report was $4,600 and would result in many people losing their life savings, taking out personal loans or making other major financial decisions.
Employment
The BBB said employment fraudulent reports between 2023 and 2024 remained stable at around 1,200 per year. However, the nonprofit noted that in 2024 losses increased by more than $1 million.
Those between the ages of 25 years old and 34 years old were the most susceptible to the fraud and accounted for 47% of total losses, per the release.
Online Purchases
Online purchase fraudulent reports were the most reported making up nearly a quarter of total reports submitted to the "BBB scam tracker" in 2024. This was due to the fraud being able to take a variety of forms from everyday purchases to online purchases such as cars, boats, or RVs, according to the organization.
The nonprofit said annual losses for 2024 were similar to 2023 at $1.5 million.
Phishing
The BBB said the most adaptable and widely used fraudulent reports were phishing through various methods of communication that include SMS texts, voice calls or QR codes.
In 2024, over 1,000 phishing fraudulent reports resulted in Texans losing $550,000, a decrease of $200,000 from 2023, according to the report.
Romance
The nonprofit said romance fraudulent reports saw a drastic increase of 877% resulting in Texans losing nearly $500,000 in 2024. The fraud usually persists for months or years whenever those committing the alleged fraud request financial assistance from the person for a variety of reasons, such as medical emergencies or travel costs.
The BBB said Texans between the age of 45 years old to 54 years old were among the most vulnerable, accounting for 50% of losses.
If a Texan thinks they may have been a victim of fraud, they can report to the BBB online.