BBB Institute report shows military consumers report higher scam losses vs. general population
BBB Institute report shows military consumers report higher scam losses vs. general population
Arlington, VA (November 13, 2024) – A new report from the BBB Institute for Marketplace Trust (BBB Institute), the educational foundation of the International Association of Better Business Bureaus (IABBB), and the Association of Military Banks of America (AMBA) reveals that military consumers (service members, military spouses, and veterans) report higher losses to scams compared to the general population. Marketplace challenges facing the military community can be downloaded for free from the BBB Institute website.
“Military consumers face unique challenges in the marketplace,” said Melissa Lanning, BBB Institute executive director. “From navigating Permanent Change of Station moves to family separation during deployment to transitioning to civilian life. This report highlights the ways in which bad business practices and scams are impacting the military community.”
Key findings include:
- Higher losses: Based on the BBB Risk Index, military consumers reported a median loss of $196, significantly higher than the $130 reported by all consumers[1].
- Online purchase scams: The riskiest scam type for all military consumers, making up 32.3% of the scams reported, with 78.5% reporting a monetary loss.
- Investment/cryptocurrency scams: The riskiest scam for active-duty service members, with 70.8% reporting losses.
- Employment scams: The second riskiest scam type for military spouses and veterans.
- Impact: Military consumers face unique challenges such as frequent relocations and deployments, which may make them more vulnerable to scams.
“There are legal protections in place to support service members and their families in the marketplace, but scammers don’t care about what is legal or ethical,” said Brigadier General Omuso George, US Army (Ret.), President and CEO of the Association of Military Banks of America (AMBA). “We exist in a dynamic threat environment when it comes to financial fraud. Increased awareness of those threats and education are our best defense to prevent our military consumers from losing their money to fraudsters. We are proud to partner with the Better Business Bureau in advancing a trustworthy marketplace.”
Contact and payment methods:
- The highest median dollar losses were reported from scams initiated in person, by phone, and via text message.
- Payment methods with the highest losses included wire transfer, check, and cash.
- Military consumers had slightly more complaints settled via Better Business Bureau (81.1%) compared to all consumers (80.5%).
- Car dealerships and home warranty plans received the most complaints, consistently ranking in the top four since 2019.
- 44% of military consumers reported losing confidence or peace of mind after being targeted by scams.
- Those who lost money were more likely to report experiencing financial distress, damaged credit, strained relationships, and loss of potential earnings.
To better understand which scam types pose the highest risk, BBB Institute assesses risk based on the BBB Risk Index: Exposure x Susceptibility (or likelihood of loss) x Monetary Loss. These three factors help us understand the impact of scams and who is most vulnerable to specific types.
To learn about the BBB Institute, click here.
To learn more about AMBA, click here.
ABOUT BBB®:
BBB is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. Businesses that earn BBB accreditation contractually agree and adhere to the organization’s high standards of ethical business behavior. BBB provides objective advice, free BBB Business Profiles and BBB Wise Giving Reports®, and educational information on topics affecting marketplace trust. To further promote trust, BBB also offers complaint and dispute resolution support for consumers and businesses when there is a difference in viewpoints. For more than 100 years, Better Business Bureau has been helping consumers find businesses, brands and charities they can trust. Better Business Bureau Serving West Florida is one of many local, independent BBBs across North America that provide business profiles on companies within its 11 county service area. These counties include: Hernando, Pasco, Pinellas, Hillsborough, Manatee, Sarasota, Hardee, Desoto, Charlotte, Lee & Collier.
Media contact: To contact BBB Serving West Florida about this release please call Bryan Oglesby (727) 530-4651 or boglesby@bbbwestflorida.org
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Bryan Oglesby
- November 12, 2024
- 7275304651
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