Scam Overview
Online shopping scams are fraudulent schemes where scammers set up fake online stores, post counterfeit products, or use popular retail platforms to deceive customers. These scams often involve low-priced goods or attractive discounts that lure buyers into making purchases.
Once payment is made, either the product is never delivered, or it’s a cheap imitation that doesn’t match the advertised description. In some cases, online shopping scams also occur on legitimate marketplaces where scammers create fake seller accounts to deceive buyers.
Victims believe they are getting a great deal, only to realise that their money has been taken by a scammer who vanishes, or the purchased item never arrives. Scammers may even use fake tracking numbers to stall victims from reporting the fraud right away.
Common Tactics & Techniques
Communication Methods: These scams are often promoted through ads on social media, fake websites, or emails advertising unbeatable sales and discounts. Scammers may also hijack existing reputable brands’ names or logos to create realistic-looking websites.
Psychological Triggers: Scammers use urgency and excitement by advertising deals that seem “too good to miss.” Limited-time offers, countdown timers, or claims of low stock are used to pressure customers into making impulsive purchases without researching the seller.
Fraudulent Actions: Scammers often create professional-looking websites with detailed product descriptions and stolen images to appear authentic. They may also list fake items or counterfeit versions of popular products at significantly lower prices to draw in customers. Another tactic is to request unusual payment methods, such as gift cards or cryptocurrency, which are harder to trace and refund.
Red Flags and Warning Signs
One of the main red flags of an online shopping scam is pricing that seems too good to be true. Extremely low prices, especially for high-value items, should raise suspicions. Other signs include websites with no contact information, vague or poorly written return policies, and a lack of secure payment options.
Check For Inconsistencies: Look for inconsistencies in product descriptions or unusual language that doesn’t match the quality of reputable websites. Scammers may also use domain names similar to well-known brands but with slight misspellings or different extensions (e.g., .net instead of .com).
Scam Examples
One common example involves counterfeit products advertised on social media as genuine luxury items. A customer might see an ad for a designer bag at a fraction of the retail price, make the purchase, and either receive a poor-quality knockoff or nothing at all. By the time they realise it’s a scam, the seller has deleted the social media account and disappeared.
Sample Messages or Calls: Scammers often use phrases like, “Limited stock available!” or “70% off all items today only!” These messages aim to create a sense of urgency, pushing customers to buy quickly without checking the authenticity of the seller or product.
Potential Impact & Consequences
Financial Losses: Victims of online shopping scams lose money on products they either never receive or that turn out to be counterfeits. Even if the financial loss is minor, repeated scams or high-ticket purchases can add up, especially if refunds are not possible.
Emotional Impact: Many victims feel embarrassed or frustrated after realising they’ve been deceived. This experience can make people wary of online shopping in the future, impacting their confidence in legitimate e-commerce platforms.
Identity Theft: In some cases, scammers may use fake online stores to gather personal information, such as credit card details and addresses, which can be used in further identity theft schemes.
Who Do Scammers Target?
Online shopping scams often target bargain hunters or those looking for luxury items at discounted prices. Shoppers who frequently browse social media for deals or those who are unfamiliar with online shopping practices may be more vulnerable.
Why They’re Vulnerable: Individuals drawn to “flash sales” or extreme discounts may overlook red flags in the excitement of finding a deal. Less experienced online shoppers may also have difficulty distinguishing between legitimate and fake sites, making them more susceptible to scams.
Prevention & Protection Methods
To avoid online shopping scams, research sellers before making purchases, especially if they’re unfamiliar or offer significantly lower prices. Look for verified customer reviews, secure payment options, and detailed contact information on the website.
Technological Defenses: Use credit cards or secure payment services like PayPal, which offer buyer protection. Avoid using debit cards, as they have fewer protections, and consider installing browser extensions that alert you to risky sites or unsecure transactions.
Behavioral Tips: Be cautious of ads on social media and avoid making purchases from unfamiliar websites without checking their legitimacy. Trust your instincts if a deal seems too good to be true, it probably is.
Steps To Take If You’ve Been Targeted
If you suspect that you are being targeted by a scam, it’s crucial to act swiftly to protect your finances, personal information, and online security. Scammers rely on speed and emotional manipulation to achieve their goals, so staying calm and alert can help you avoid falling victim.
The first step is to stop all communication with the potential scammer. Cease any interactions, whether through phone calls, emails, or messages, and avoid clicking on any links or attachments they may have sent, as these could contain malware. Next, secure your accounts and report the suspicious activity. Consider taking these steps:
- Change Your Passwords: Update passwords for your online accounts, especially if you’ve shared any sensitive information with the scammer.
- Contact Your Bank: If you shared financial information or made a payment, alert your bank or credit card provider immediately.
- Run a Security Scan: Use antivirus software to scan your device for any malware that may have been installed by interacting with the scammer.
- Report the Scam: Report the scam to relevant authorities (such as Action Fraud, the FTC, or other local agencies) to help them track fraudulent activities.
Once you’ve taken action to protect your accounts and report the incident, seek out support if needed. Falling victim to a scam can be distressing, and many individuals feel embarrassed or ashamed, which is normal. Remember that scammers are professionals who use sophisticated tactics designed to exploit human emotions. Speaking to a counsellor or a support group for scam victims can help you process your experience and reduce emotional stress.
Finally, stay informed about new scams and best practices for online safety. Scams are constantly evolving, and understanding common tactics will help you stay vigilant in the future. Use reliable resources and consumer protection websites to learn about the latest scam warnings and recommendations for staying safe online.
Helpful Resources
There are several resources available to support victims of online shopping scams, providing information on reporting scams, recovering funds, and protecting against identity theft.