In a year where lives were destroyed by the many impacts of COVID-19, over 46,000 people also fell victim to scams. Nearly 50% of consumers that were scammed, reported that it resulted in a financial loss.
In a recent report published by the Better Business Bureau, statistics indicate that many successful cons took advantage of the pandemic’s effects.
2020 brought financial issues for many people that left them in need of money to offset their financial troubles.
“The pandemic has created an environment that is ripe for financial scams,” explained Kristin Matthews, Marketing & Communications Specialist for BBB Atlantic
That’s why advance-fee loans were ranked as the riskiest of scams. In 2020 Canadians lost an average of $1400 per person to these loans that required “upfront fees.” In Canada, it is illegal to require fees before giving out a loan.
Another scam that used financial issues to establish to take advantage of citizens was sweepstakes and lottery scams.
While they lost relevance for several years, victims reported that financial strain tainted their thinking, leading them to believe they had won a cash prize.
The convenience of online shopping resulted in online purchase scams having the highest success rate of all. 75% percent of people that encountered scams for online purchases ultimately fell for them.
COVID-19 also caused a decrease in the effectiveness of certain scams, as travel which has been notorious in the past for the money it’s cost people did not crack the top 10.
The full list was as follows:
- Advance Fee Loan
- Online Purchase
- Home Improvement
- Cryptocurrency
- Employment
- Fake Invoices and Supplier Bills
- Credit cards
- Phishing
- Sweepstakes and Lotteries
- Counterfeit Products
