The Wisconsin Better Business Bureau (BBB) recently issued an alarming warning about the costliest scams impacting the state. Unfortunately, scammers are becoming more sophisticated, and many people are losing substantial amounts of money. These scams aren’t just about losing cash — they can also take a significant emotional toll on victims.
If you or someone you know has been targeted by scammers, it’s important to understand the risks and how to protect yourself. In this article, I’ll break down the most common and costly scams in Wisconsin, based on the latest BBB report, and offer tips on how to avoid falling victim.
1. Investment and Cryptocurrency Scams: The Most Costly of All
According to the Wisconsin BBB, investment and cryptocurrency scams account for more than 80% of the reported scam losses in the state. These scams can be particularly devastating because they often involve emotional manipulation and financial grooming.
Here’s how these scams typically play out:
- Initial contact: Scammers usually reach out via email, social media, or phone calls, promising high returns on investments, often in popular assets like cryptocurrency.
- Building trust: Over weeks or even months, the scammer builds a relationship with the victim, offering seemingly sound investment advice.
- Escalation: Once trust is established, the scammer encourages the victim to increase their investment, often asking for larger sums of money to be invested in high-risk or non-existent opportunities.
Victims often report losing an average of $5,000 to these scams, but in some cases, the losses can be much higher.
2. Employment Scams: A Growing Threat
Another significant category of scams are employment scams, which account for around 14% of reported scams. These scams often appear to be legitimate job offers but are designed to trick victims into paying money upfront for various “services,” such as training, equipment, or background checks.
How does it typically work?
- The scammer claims to have a job opportunity with a reputable company.
- Victims are asked to pay for a background check or training that’s never necessary.
- Once the payment is made, the scammer disappears, and the job opportunity turns out to be fake.
These scams can be particularly dangerous because they prey on people who are desperate for work, and the emotional toll can be devastating.
3. Romance and Friendship Scams: Manipulation for Money
Romance scams are another heartbreaking type of fraud, where scammers spend time building an emotional connection with their victim through online platforms. After developing trust, they eventually ask for money to deal with a supposed emergency.
What makes these scams so damaging is how personal they feel:
- Scammers often pose as soldiers or foreign workers, creating fake profiles on dating websites or social media.
- They will spend weeks or months gaining the victim’s trust before claiming to need money for emergencies like medical bills, travel expenses, or business issues.
Victims of romance scams often feel humiliated and deeply hurt by the betrayal of trust. The financial losses are usually substantial, with victims often being tricked into sending large sums of money.
4. Impersonation Scams: Fake Organizations Targeting Victims
The BBB also highlighted the rise of impersonation scams, where fraudsters pose as well-known companies or government organisations. According to the BBB, some of the leading impersonation scams involve well-known names like:
- Publishers Clearing House
- U.S. Postal Service
- PayPal
How do these scams work?
- The scammer contacts the victim, claiming they’ve won a large sum of money or have a package to be delivered.
- Victims are then asked to pay “fees” or provide sensitive personal information (like bank details or Social Security numbers) in exchange for their “winnings.”
These types of scams can be particularly deceptive because the scammers use familiar, trusted names to gain the victim’s trust.
5. The Emotional Toll of Falling for Scams
While losing money is obviously the most immediate consequence of falling for a scam, the emotional impact can be just as severe. According to the BBB’s Lisa Schilling, victims often report feelings of:
- Anger and frustration
- Sadness and depression
- Shame and embarrassment
- Anxiety about their financial future
These emotional effects can last long after the money is gone, and many victims struggle to move forward.
How to Protect Yourself from These Costly Scams
With these scams becoming more prevalent, it’s important to arm yourself with the knowledge to protect both your finances and your emotional wellbeing. Here are some tips to avoid falling victim:
- Be cautious with unsolicited messages: Whether it’s an email, phone call, or social media message, always be wary of unsolicited contact, especially if it involves offers that seem too good to be true.
- Research before investing: Before committing to any investment, especially in cryptocurrency, make sure you research the opportunity thoroughly. If it’s legitimate, it should be backed by proper regulatory oversight.
- Avoid sending money to people you don’t know: Never send money to someone you’ve never met in person, no matter how compelling their story might seem.
- Verify job offers: If you’re asked to pay for training, background checks, or other fees up front, it’s likely a scam. Legitimate employers never ask for money from job candidates.
Final Thoughts: Stay Vigilant
The costliest scams in Wisconsin are becoming more sophisticated, but by staying informed and vigilant, you can protect yourself from falling victim. Scammers prey on trust, so it’s essential to always verify before making any financial commitments. If you feel something isn’t right, trust your instincts and report it.
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