If a deal seems too good to be true, it probably is.
Online buying scams were the biggest type of consumer fraud in 2017, according to the Better Business Bureau's (BBB's) annual scam-tracking report—up from fourth place a year earlier. The rise of digital shopping and growing comfort with sharing personal information online are factors in this growing category of fraud.
At its most basic, consumers pay for something they never receive, which according to the BBB involves pets and clothing more than other types of online purchases. Most cases involve credit card payments.
The report broke down susceptibility and loss by age, and very clear patterns emerged. Digital methods like text, email or websites were the leading method of interaction across all generations, though digital contact was highest for the youngest group and decreased by age.
On the surface it is a little surprising that younger consumers were more often subjects of scams than older generations—since seniors in particular are often stereotyped as easier targets. In fact, 18- to-24-year-olds made up 25% of victims, while 13.2% were 65 and older. Despite youth being easier to con, they lost less money when it happened than their elders, presumably because older adults have more financial reserves to draw on.