By Randy Hutchinson
President of the BBB of the Mid-South
Reprinted from The Commercial Appeal
A new study conducted by the BBB Institute for Marketplace Trust (BBB Institute) and the Association of Military Banks of America (AMBA) found that military consumers report higher losses to scams than the general population. Military consumers include service members, military spouses and veterans.
Melissa Lanning, BBB Institute Executive Director, said, “Military consumers face unique challenges in the marketplace. From navigating Permanent Change of Station moves to family separation during deployment to transitioning to civilian life.”
Brigadier General Omuso George, US Army (Ret.), President and CEO of AMBA, said, “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.”
Military consumers reported a median loss of $196 to scams, significantly higher than the $130 reported by all consumers. Military consumers ages 18 - 24 reported the highest susceptibility to scams (57.7 percent) and median dollar loss ($332) of all military age groups.
The top five riskiest scams reported by military consumers were;
The highest median dollar losses were reported from scams initiated in person, by phone, and via text message. Military consumers incurred the highest losses when they were tricked into making payment via a wire transfer, check or cash.
After being targeted by a scam, 44 percent of military consumers reported losing confidence or peace of mind. Those who lost money were more likely to experience financial distress, damaged credit, strained relationships, and loss of potential earnings.
The BBB Institute and AMBA offer these tips for military consumers, and others, to avoid scams: