The Soaring Impact of Best Buy Scams in 2022

Best Buy may offer great deals on the latest tech and appliances, but criminals are preying on unwitting shoppers in even greater numbers. Losses to retail scams hit record highs in 2022 according to the FTC, with Best Buy an especially tempting target given its household brand name and 69 million My Best Buy loyalty members.

Scam Statistics Paint a Grim Picture

To comprehend the immense impact of Best Buy retail schemes in 2022, let‘s examine some key statistics:

• $448 million lost to online retail scams from January to September 2022, a 95% increase over 2021 according to SocialCatfish.com
• Best Buy gift card scams alone totaled over $28 million by November 2022 says GiftCards.com
• 36% rise in losses to loyalty program point thefts across major retailers including Best Buy per Auriemma Consulting Group
• 29% increase in consumer complaints about fraudulent charges and accounts for electronics/computer stores flagged by the Consumer Financial Protection Bureau

These sobering numbers showcase how serious of an issue Best Buy fraud has become, getting more pervasive and costing victims more.

New Sophistication in Gift Card Swindles

Gift card scams are nothing new, but the tactics are reaching new levels of deception. The typical scam starts with fraudsters buying up Best Buy gift cards using stolen credit cards or bank accounts, then quickly selling the codes at a discount on the black market before getting caught.

Based on FTC reports, these schemes are responsible for over $245 million in gift card fraud losses since 2018. But scammers keep finding ways to cast wider nets, like creating fake loyalty program accounts to purchase cards with points then disappear.

Others have launched glossy fake websites mimicking Best Buy‘s actual gift card mall, luring victims to buy codes which end up already redeemed or never funded at all.

Tech Support Scams Turn Threatening

Perhaps the most concerning evolution in Best Buy frauds is increasingly aggressive tech support scammers. The classic scheme involves impersonating Geek Squad reps by cold-calling victims and claiming dangerous malware was detected on their computer.

But new reports signal these social engineering tactics are turning darker. Scammers now threaten consumers that their devices will be remotely locked or sensitive personal files released if extortion payments aren‘t made. Some fraudsters have installed software allowing them to takeover device cameras and harass victims.

In 2022, over 28,000 people filed complaints about menacing tech support scams to the FTC detailing $347 million in losses. That‘s a 60% increase in complaints from 2021. For people unfamiliar with computers, these threats can feel very real and terrifying.

Cashing in on Loyalty Programs Exploits

With 69 million My Best Buy members ripe for targeting, scammers are stepping up attacks to steal rewards points and use accounts for other frauds. Security experts warn compromising these accounts can give criminals a gateway to harvest additional sensitive information to advance identity theft.

In one common ploy, phishing emails pose as Best Buy requests to redeem rewards using links to fake login sites. Points get drained if victims enter credentials, and access enables more account plundering.

Research by Aite Group estimates over $230 million was stolen from US customer loyalty programs in 2022. So criminals are clearly having a field day at members expense.

Authorities Fight Back Against Scammers

Despite rampant retail crime schemes, 2022 did see some major arrests thanks to consumers speaking up and authorities cracking down.

In June, 14 suspects were indicted running tech support schemes using pop-up error messages to demand remote access payments. Over 18,000 victims collectively lost $3 million. Best Buy teamed with authorities to track down the international criminal ring.

And in August, law enforcement busted three scammers who purchased $395,000 of Best Buy gift cards with fraudulent credit cards over three years. Shoppers who noticed odd purchases assisted investigations.

These wins show that stopping these criminal enterprises requires vigilance from both consumers and retail partners like Best Buy.

Who‘s Most at Risk and Why

Research provides more context on which consumers tend to be defrauded most often. Those newer to computers and the internet are frequent targets of tech support scams. And senior citizens over 60 lost 25% more on average to online retail scams according to SocialCatfish‘s analysis.

Additionally, deal chasing shoppers are more apt to overlook red flags that can tip-off frauds in the quest for perceived savings.

But truly, anyone is vulnerable, especially if tired or distracted. Our human nature works against us. It simply feels easier believing offers are authentic versus questioning legitimacy which takes more effort.

There‘s no shame in getting tricked, but the more educated shoppers become on spotting criminal ploys, the less opportunity crooks have to keep succeeding on such mass scale.