MOBILE, Ala. — Cryptocurrency scams drove the biggest jump in consumer losses of any fraud category in Alabama, according to the Better Business Bureau Serving Central & South Alabama, which shared its 2022 Scam Tracker findings in January 2023.
Monde Donaldson, vice president of the BBB Educational Foundation, said monetary losses reported from crypto scams climbed from $11,650 in 2020 to more than $120,000 in 2022 — a tenfold rise over two years.
The numbers behind the surge
Overall, reports to the BBB’s Scam Tracker rose 31% from 2021 to 2022. Donaldson cautioned that a report reflects a complaint, not necessarily a completed rip-off. Even so, the money at stake grew quickly: total reported losses jumped 116% year over year, and the median loss per report rose 28%.
The BBB said most scams now reach victims digitally, arriving by text message, email or social media rather than in person.
How to spot the red flags
Danger signs range from the payment methods a supposed business demands to sloppy grammar and too-good-to-be-true pitches — particularly any investment promoted as no-risk with guaranteed returns, Donaldson said.
“The best way to protect yourself from falling victim to any scam is to know what scams are out there, how they work, and what the red flags are so you can identify fraudulent offerings prior to completing a transaction,” she said.
The BBB maintains a digital library breaking down common types of fraud, available around the clock on its website, where consumers can also file a report through its Scam Tracker tool.