Black Americans Lose More Money When They're Victims of Identity Crimes, Report Shows

Identity thieves are equal opportunity offenders but a recent study shows Black Americans tend to lose more money when they fall victim to a scam.

“We’ll say, ‘it’s just another loss,’ but the thing about us is our resiliency and how we turn losses into lessons,” said Derrick Banks, owner of Freshly Faded Barber Shop, a Black-owned business in North Park, San Diego.

Once the subject of identity theft came up in the shop, everyone had an experience to share about how they were either targeted or scammed.

Jarrod Smith, a barber at the shop, sat on his chair to chime in on how in Texas he fell for a ruse that promised a quick $500 for a $50 investment.

“You fall for it, you’re like, ‘I’ll make this real quick money,' and next thing you know, your bank account is not working, nothing is working,” he said.

We turn losses into lessons.

Derrick Banks

Banks recalled a phone call that came into his shop claiming to be from the power company. It was not. “If you don’t pay us right now, we’re going to turn off the electricity in your barbershop,” was the threat over the phone. He remembered feeling a bit scared but luckily he didn’t send any money.

Banks said the information and tools to fight back are not getting to Black communities, which is why he believes so many people fall for scams that either take money, personal information or both.

“We’re not aware of all the pitfalls that many others have been aware of this entire time,” he said.

Initial findings of a larger three-year initiative by the Identity Theft Resource Center and the Black Researchers Collective seem to support Banks’ opinion as it examines the impact of identity crimes on Black communities across the nation.

According to the survey within the report, Black victims lose more money than the ITRC’s recent finding of complaints they surveyed.

• 16% of Black victims said they lost between $5,000 to $9,999 compared to 10% of ITRC’s overall complaints.
• 26% said they lose between $1,000 and $4,999 compared to 9% of ITRC’s overall complaints.
• 22% said they were out $500 to $999 compared to 5% of ITRC’s overall complaints.

“That is a huge percentage of their annual income that is going to a thief,” said Eva Velasquez, president and chief executive of the ITRC. She added that the study also showed that only 50% of Black victims report their losses to law enforcement.

Banks wasn’t surprised by this number.

“If I have to go in there and say, ‘Hey, I was robbed of my money,’ am I going to feel comfortable with someone who doesn’t look like me, that sometimes unfairly targets my community? It’s something hard to do,” he said.

Velasquez says this could change their outreach strategies and who they partner with in future.

“We need to go to faith-based organizations or maybe senior centers, or other community groups that have good standing,” she said.

Smith agreed as he got ready to go home. “I think they should put more boots on the ground and put a face in the community,” he said.

Banks nodded and added, “They’re only going to take advantage of us for so long before we flip the whole game up which is really dope.”