Through an analysis of over 6,000 BBB Scam Tracker reports submitted by Texas residents throughout 2024, Better Business Bureau serving the Heart of Texas found record-setting losses and new strategies across a variety of scam types.
Key findings:
•In total, Texas residents reported over $10 million lost to scams – setting an all-time high since BBB Scam Tracker was first brought online in 2014.
•One-third of all reports (34%) include a median monetary loss of $150, slightly higher than median losses in 2023 of $136.
•Consumers aged 45-54 ($2.8 million lost) and 55-64 ($2.7 million lost) reported the highest total losses, separated by $70,000.
•Losses to investment/ cryptocurrency scams account for nearly a third (31%) of total losses. Victims reported more than $3.1 million lost to these scams in 2024 – a $2 million increase from the previous year.
From 2018 to 2022, BBB received an average of 3,800 scam reports totaling $2.4 million in losses annually. In 2023, BBB Scam Tracker reports increased to 5,000 and losses to $9 million. The following year in 2024, reports increased again to 6,000 and losses to $10.1 million.
“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.”
Top 5 Scams of 2024 in Texas Investment/ Cryptocurrency
With $3.1 million in total losses, investment/cryptocurrency scams were the costliest issue Texas residents encountered in 2024. Although not reported at the same rates as online purchase or employment scams, an extremely high median loss per report of $4,600 demonstrates the impact these scams have on traditional or digital currency investors.
Through highly sophisticated approaches, including providing fake dashboards that appear to show an investment creating huge returns, scammers entice targets to invest more money into a fraudulent fund or digital wallet. The scam often does not come to light until victims attempt to withdraw money from the account and are met with a series of undisclosed tax, service, or processing fees – or are simply ignored. Many people who encounter this scam lose life savings, take out personal loans, or make other major financial decisions under the guidance of the scammer.
Employment
Reports of employment scams stayed relatively stable between 2023 and 2024 at around 1,200 per year. However, losses in 2024 increased by more than $1 million. While all age groups are affected by these scams, younger residents appear particularly vulnerable with those between the ages of 25-34-years-old accounting for 47% of total losses.
Victims encounter employment scams most often online by interacting with a fraudulent job posting. Scammers may impersonate legitimate businesses, leveraging the respect and trust attached to recognized names to encourage applicants to apply. Monetary loss is often due to an overpayment and fake check scheme but can also occur when an applicant is required to purchase specific office equipment that is never received, certifications that are never awarded, or other requirements to begin work. Additionally, victims of an employment scam have provided extremely sensitive personal information to a fraudulent employer, including Social Security, tax, and banking information which places them at an increased risk of having their identity stolen.
Online Purchase
The most reported scam type, online purchase scams take a variety of forms and range from regular, everyday products such as dog beds and clothing to high-end luxury products, as well as online purchases for cars, boats, or RVs. Annual losses to these scams in 2024 mimic 2023 performance at $1.5 million, but the number of reports slightly decreased from 1,800 in 2023 to 1,500 in 2024. Regardless of the decrease in reports, online purchase scams still account for nearly a quarter (24%) of all reports submitted to BBB Scam Tracker by Texas residents in 2024.
Online purchase scams often increase during periods of the year that coincide with an increase in shopping behavior, such as the backto- school and holiday season. Initial contact is often through social media which then directs the buyer to an unrecognized website to finalize their order. Scammers tend to request payment to be provided through unprotected methods that make it difficult, if not impossible, to dispute the charge when a purchased product is never received or does not reflect an advertisement. Among all types of products used in an online purchase scam, one of the most frequent and effective is the online sale of pets.
Phishing
Among the most adaptable and widely used scam varieties, phishing scams seek to obtain sensitive information through a multitude of tactics. They are often distinguished by the method of communication used, such as smishing (SMS texts), vishing (voice calls), or quishing (QR codes). In 2024, over 1,000 phishing scam reports resulted in Texas residents losing $550,000 – a $200,000 decrease from 2023 and a 300 increase in reports.
Impersonation is a key tactic scammers use in a phishing scam with some of the most impersonated companies including USPS, Amazon, Bank of America, and various law enforcement agencies. Their overarching goal is to use fabricated claims to convince targets to divulge account details or provide personal information which can be used to steal a person’s identity or compromise their online accounts. In many cases, threats and intimidation are used to coerce victims into complying with their directions immediately – including the threat of arrest or other legal action.
Romance
In two years, losses to romance scams have increased by 877% to a total of nearly $500,000 in 2024. Recent reports describe how a new hybrid of romance and investment scams have resulted in significantly greater losses as scammers take advantage of online relationships to direct victims to fraudulent investment opportunities. Residents between the ages of 45-54-years-old appear particularly vulnerable to romance scams, accounting for 50% of total losses.
Found on social media, as well as online dating platforms, romance scams are uniquely devastating due to the emotional toll they inflict in addition to a financial one. Many of these schemes persist for months, or even years, as the scammers work to develop a trusting relationship with their target. Eventually, they will request financial assistance for a variety of reasons, such as a medical emergency, travel costs, or other need. Recently, reports describe how victims are coerced into investments under the guidance of a romantic interest.
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