Fighting Fraud
By Better Business Bureau Serving Greater Cleveland
The Better Business Bureau’s Institute for Marketplace Trust released their 2024 ScamTrackerTM Risk Report, revealing that scammers are increasingly using sophisticated psychological tactics to defraud individuals, with “carrot” incentives proving significantly more common than “stick” threats.
The study categorized scam techniques into three main approaches: the “carrot” method, which lures victims with enticing opportunities; the “stick” method, which uses fear or intimidation; and other scams that don’t fit neatly into either category. Findings indicate that 61.3% of scams relied on the carrot method, while only 11.8% used stick tactics.
Carrot scams often include promises of quick wealth through low-risk investments or lucrative job offers. These scams predominantly target victims via social media and websites. Stick scams, on the other hand, create panic by threatening legal trouble, unpaid taxes or harm to loved ones, and are most often delivered via phone calls.
While less frequent, stick scams resulted in higher financial losses per victim, with an average reported loss of $316, compared to $102 for carrot-based scams.
The report also notes a rise in text message scams across both categories. Carrot scams via text increased from 7.4% in 2023 to 9.8% in 2024, while stick scams via text rose from 6.8% to 9.4%.
Notably, phone-based stick scams surged from 43.0% to 50.3% year-over-year. Consumers are urged to stay vigilant and verify offers or threats before taking action. Authorities recommend never sharing sensitive information over the phone and reporting suspicious messages to relevant fraud prevention agencies.
How to Avoid Carrot or Stick Scams
- Don’t share sensitive information over the phone
- Stay vigilant and verify offers
- Think before you click on links in emails
If you’ve been the victim of a scam on social media, report it to the BBB Scam Tracker. Your report helps us build consumer awareness and reduce the effectiveness of scammers’ favorite tactics. Have additional questions? Reach out to your BBB at 216.241.7678 or [email protected].
