(BBB Institute for Marketplace Trust)
Home improvement scams #1 riskiest in Canada in 2022, according to a new BBB report
According to a new report from the Better Business Bureau, home improvement scams became the #1 riskiest scam type reported in Canada in 2022. Reports of home improvement scams by Canadians increased 51.2% in 2022, up from 4.1% of reports to 6.2% in 2022. People also lost more money to this scam type, with a median dollar loss of $1,900, up 187.4% from $661 in 2021.
The overall median dollar loss from all scams reported by Canadians in 2022 was $300, a 20% increase from the 2021 median dollar loss ($250), according to the 2022 BBB Scam Tracker Risk Report. The percentage of Canadians who reported losing money after being targeted by a scam (susceptibility) increased from 45.1% in 2021 to 46.9% in 2022.
“Home improvement scams rose from the #4 riskiest scam type reported by Canadians in 2021 to #1 in 2022,” said Mel Trumpower. “This scam type is often perpetrated by door-to-door solicitors who offer quick, low-cost repairs. They take payment and never return to do the work. In some variations, they do shoddy work, don’t finish the job, or dramatically increase the price after the original agreement. Our report includes tips on how to avoid this scam type, as well as many other scams.”
Cryptocurrency scams, the #1 riskiest in 2021, fell to the #2 riskiest scam type in 2022 due to a slight decrease in susceptibility and median dollar loss. Advance fee loan scams dropped from #2 riskiest in 2021 to #3 riskiest in 2022. Employment scams rose to #5 on this year’s list, up from #7 riskiest in 2021.
New to the 2022 top 10 riskiest scams in Canada list compared to 2021 are investment scams (#4), rental scams (#7), and travel/vacation/timeshare scams (#9).
Reports by age
In 2022, ages 35-44 reported the highest median dollar loss ($500) and the biggest increase in median dollar loss, up from $250 in 2021. Ages 25-34 were the only age group that did not report an increase in median dollar loss in 2022. In 2022, ages 35-44 reported higher susceptibility (57.2%) than other age groups.
Reports by gender
Consistent with previous reports, more Canadian women (63.5%) reported scams to BBB Scam Tracker than men (36.5%). The percentage of women who reported losing money after being targeted by a scam (susceptibility) increased from 44.4% in 2021 to 47.8% in 2022, while susceptibility for men dropped from 48.5% in 2021 to 46.7% in 2022. Although the median dollar loss reported by men and women increased in 2022, the median dollar loss reported by men ($453) was substantially higher than by women ($249).
Several non-financial impacts were also reported in 2022 that are worthy of note:
· 47.5% reported losing confidence or peace of mind after being targeted by a scam.
· 8.4% of survey respondents reported losing money to a scam at least three times; 23.5% reported losing money twice or more.
· People who reported losing money 3+ times were more likely to say they
1) panic during stressful situations,
2) felt financial stress during the past year, and
3) are isolated (live alone or have fewer friends), compared to those who reported losing money 0-2 times.
RESOURCES
For more 2022 BBB Scam Tracker Risk Report highlights, visit BBBMarketplaceTrust.org/CanadaRiskReport.
Go to BBB.org/ScamTracker to report a scam, learn more about other risky scams on BBB.org/ScamTips and visit our news feed.
ABOUT THE BBB INSTITUTE FOR MARKETPLACE TRUST
The BBB Institute for Marketplace Trust (BBB Institute) is the educational foundation of the Better Business Bureau. Our mission is to educate and protect consumers, promote best practices for businesses, and solve complex marketplace problems. Our consumer educational programs, which include a wide array of fraud prevention and education resources, are delivered digitally and in person by BBBs serving communities across the United States and Canada. You can find more information about BBB Institute and its programs at BBBMarketplaceTrust.org.
ABOUT BBB SCAM TRACKER
BBB Scam Tracker (BBB.org/ScamTracker) is an online platform that enables consumers and businesses to report attempted and successful acts of fraud. The platform also enables people to search scam reports to help determine if a scam is targeting them. The platform was upgraded in 2022 with support from Amazon and Capital One.
ABOUT BBB RISK INDEX & BBB SCAM TRACKER RISK REPORT
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. BBB Institute publishes its annual findings each year in the BBB Scam Tracker Risk Report. The report also includes survey research conducted with those who reported scams to BBB Scam Tracker.