Everyone is familiar with this stereotype: The naïve and vulnerable aging citizen who sadly loses a huge chunk of their savings to an Internet scam artist. Yet, a recent study conducted by the Better Business Bureau has shown that aging baby boomers are in fact less likely to be victimized than are millennials, those born between 1980 and 2000.
The 2016 BBB study is based on a survey of more than 2,000 adults in the U.S. and Canada. It found that younger and more educated individuals are the most likely to be scammed. The issues of marketplace scams affect one in five Americans. 17% of the population will become a victim every year, with annual losses estimated at more than $50 billion, according to a 2013 study.
Optimism Bias
The study identifies a phenomenon that may be partly to blame for the vulnerability of millennials: optimism bias. This is the idea that we think other people are more vulnerable to scams than we are. It’s a mode of thought that can lead to risk-taking and to a failure to heed precautionary advice.
Because the alarm has been sounded for so long towards older Americans, they seem to have heeded the warnings, making themselves more scam-savvy than millenials. They are less likely to make purchases online and to make impulsive buys. The online community is where many scams occur.
BBB Scam Tracker
The recent study confirms trends uncovered by the BBB’s Scam Tracker tool. Since that service’s launch in 2015, over 30,000 consumers have reported details of scams. BBB shares those reports with law enforcement to help drive investigations.
Those reports have revealed that 89% of seniors (age 65 and up) recognized scams in time, with only 11% actually losing money. For those between the ages of 18 and 24, 34% reported losing money.
Some myths about scams: Don’t believe everything you hear
BBB has identified 5 common myths about scams. Familiarize yourself with these and be better protected in the marketplace:
• “Scammers are easy to spot.” In truth, they are sophisticated and gifted manipulators. They exploit Internet anonymity to their advantage, sometimes changing their names chameleon-like to pose as trusted sources.
• “Scamming mostly hits uneducated, older people.” The reality is that 69% of victims are under 45 and 78% have college or graduate degrees.
• “Scams have little economic impact.” They have a staggering impact, in truth, causing annual losses of around $50 billion, hitting one out of 5 individuals yearly.
• “I just can’t protect myself from scams.” The truth is that informing yourself can provide protection. 60% of victims agree that being unfamiliar with the scammer’s technique was a contributing factor in their loss.
• “There’s no point in reporting a scam.” Not true. You can help others by shining a light on your experience for them. 80% of those surveyed said that knowing about a particular scam helped them avoid it.
BBB urges the public to take the time to report their victimization to local law enforcement, to BBB’s Scam Tracker at bbb.org and to the Federal Trade Commission at ftc.gov. Don’t let your embarrassment at having been victimized keep you from empowering others by telling your story. You can make a difference.
For questions or concerns about scamming attempts, contact your Better Business Bureau by calling (800) 856-2417, or visit our website at bbbinc.org.