How to Avoid Scams When Shopping for Bargains Online

Online shopping is a convenient way to find great deals but also comes with significant risks. Cybercriminals create fake websites that look like genuine sellers or impersonate established retailers like Amazon to deceive shoppers and steal personal information or money.

They advertise their fake stores through social media or other genuine sites and can even appear in your search engine results, making it difficult to tell they are scams. These stores may sell popular clothing, footwear, or electronics at tempting prices. If you place an order, in the best-case scenario, you'll receive a counterfeit item. Other times, you'll receive nothing at all.

Victims of online shopping scams should act quickly: contact their credit card issuer, freeze their credit, change compromised passwords, report the incident to the online marketplace, and notify the Federal Trade Commission (FTC).

In this article, we'll explore the common types of online shopping scams, how to recognize them, and how to protect yourself from falling victim.

Did You Know?

In 2023, the FTC received 369,469 reports of online shopping scams, resulting in a total loss of $392 million, with a median loss of $125 per victim. This makes online shopping fraud the second most prevalent scam category, trailing only behind imposter scams.
In 2022, $41 billion was lost to e-commerce payment fraud.
Product reviews are a big factor that influences e-commerce purchasing decisions. According to PwC, 29% of US-based Gen Z shoppers use reviews when choosing a product. Positive reviews boost confidence and the chance of a purchase.

8 Common Online Shopping Scams to Watch Out For

1. Fake Websites and Apps

Scammers make fake websites and mobile apps that look like real online stores. These bogus sites often have tempting deals to get shoppers to enter their payment info. For example, you might see a site that looks just like Amazon, offering the latest iPhone for half price. But after you pay, you never get the phone, and your credit card info is stolen.

2. Fake Social Media Ads

According to bbb.org, 40% of online shopping scams originate from Facebook and Instagram ads. These attention-grabbing ads frequently feature stolen photos and hacked accounts. The products they promote may never arrive or turn out to be low-quality imitations of what was advertised. For example, an ad might display a designer handbag at a significantly reduced price, but you may end up receiving a poorly made knockoff instead.

3. Phishing Emails

Scammers send messages that seem to be from well-known stores. These emails often have links to fake websites or ask you to provide personal information. You might get an email that looks like it's from Target, saying there's a problem with your order and asking you to "verify" your account details. Once you do that, your data is in the hacker's hands.

4. Non-Delivery Scam

In this scam, you buy something online, but it never shows up. The seller either vanishes or keeps making excuses for the delay. This often happens with hard-to-find items, like popular gaming consoles, during the holiday season.

5. Fake Designer Goods

Some scammers sell counterfeit products at prices that seem too good to pass up. These items are usually poor quality and don't work as advertised. You might buy what you think are Ray-Ban sunglasses for $30, only to receive flimsy plastic frames that fall apart after a week.

6. Unusual Payment Requests

Fraudsters might ask you to pay using methods that are hard to trace or get refunds from, like wire transfers, gift cards, payment apps or cryptocurrency. Be wary if a site only accepts Bitcoin or asks you to pay via Western Union.

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7. Bait and Switch

In this scam, you buy a product based on an appealing description and image, but you get a completely different, inferior item. For example, you order a high-end smartphone but receive a cheap knockoff that barely functions.

8. Fake Customer Reviews

To appear trustworthy, scammers create false positive reviews on their sites or on platforms like Amazon or eBay. They might use a technique called "brushing," where they send cheap items to random addresses to create seemingly legitimate transactions. This allows them to post fake "verified purchase" reviews.

How to Spot Online Shopping Scams

Protecting yourself from online shopping scams can save you money, time, and stress. Keep an eye out for these warning signs:

1. Too good to be true deals

If an offer seems impossibly good, it probably is. Be skeptical of prices drastically lower than those at well-known stores. For example, if you see the latest iPhone for 80% off the retail price, it's likely a scam.

2. Fishy Website Addresses

Examine the website's URL carefully. Scam sites often use slightly misspelled names or add extra characters, such as "amazom.com" or "amazon-deals.com" instead of "amazon.com." Also, look for "https://" at the start of the address, which indicates a secure connection.

3. Amateurish Website Design

Legitimate businesses invest in professional-looking websites. Be wary of sites with poor layout, broken links, or low-quality images. If a site looks like it was made in the ‘90s, proceed with caution.

4. Missing or Vague Contact Details

Reputable online stores provide clear contact information, including a physical address and phone number. Be suspicious if a site only offers an email address or a generic contact form. Try calling the provided number to see if it's actually in service.

5. Scarce or Negative Feedback

Research the website or seller. A lack of reviews or an abundance of negative feedback is a red flag. Check trusted review sites and forums for others' experiences. Be aware that some scammers create fake positive reviews, so look for detailed, authentic-sounding feedback.

6. High-Pressure Sales Tactics

Scammers often create artificial urgency, pushing you to buy quickly before a "limited-time offer" expires. Legitimate deals rarely require immediate action. If you feel pressured, step back and reassess.

7. Unusual Payment Requests

Be cautious if a seller asks for payment via wire transfer, gift card, or cryptocurrency. These methods are hard to trace and nearly impossible to reverse. Stick to secure, standard payment options like credit cards or PayPal, which offer buyer protection.

8. Too Much Personal Information Required

Be wary if a site asks for excessive personal details for a simple purchase. While some information is necessary, you shouldn't need to provide your Social Security Number or bank account details for most online shopping transactions.

9. Unsecured Checkout Process

When entering payment information, ensure the website is secure. Look for a padlock icon in the address bar and "https://" at the beginning of the URL. If these are missing, don't enter your financial details.

10. Poorly Written Content

Pay attention to the quality of writing on the website. Legitimate businesses typically have well-written, error-free content. Multiple spelling and grammar mistakes can indicate a hastily created scam site.

How to Shop Safe Online

Follow these best practices to avoid scams and protect your personal information:

1. Stick to Reputable Retailers. Prioritize well-known and established online stores. If you're unfamiliar with a retailer, thoroughly research their reputation before making a purchase.

2. Verify the Website. Double-check the URL for accuracy and look for HTTPS in the address bar. Avoid clicking links in unsolicited emails or messages; instead, type the web address directly into your browser.

3. Use Scamio. If you suspect someone is trying to scam you, or a website looks suspicious, check it with Scamio, our AI-powered scam detection tool. Send any texts, messages, links, QR codes, or images to Scamio, which will analyze them to determine if they are part of a scam. Scamio is free and available on Facebook Messenger, WhatsApp, and your web browser. You can also help others stay safe by sharing Scamio with them in France, Germany, Spain, Italy, Romania, Australia, and the UK.

4. Read Reviews. Look for customer reviews and ratings of both the product and seller. Trusted review sites and forums can provide valuable insights into an online store's reliability.

5. Use Secure Payment Methods. Pay with credit cards or secure payment services like PayPal, which offer fraud protection. Avoid using debit cards or unconventional payment methods. Be cautious when sellers insist on immediate payment through apps like Zelle®, Venmo, Cash App, or online wire transfers.

6. Be Cautious with Personal Information. Only provide necessary information when making a purchase. Reputable retailers won't ask for your Social Security number or other sensitive data.

7. Monitor Your Accounts. Regularly check your bank and credit card statements for unauthorized charges. Report any suspicious activity to your financial institution immediately.

8. Use Strong Passwords. Create strong, unique passwords for your online shopping accounts. Consider using a password manager to keep track of them securely.

9. Beware of Public Wi-Fi. Avoid making purchases or entering personal information while connected to public Wi-Fi. Public networks are easily hackable, allowing cybercriminals to intercept your data through man-in-the-middle attacks. Use a secure, private connection whenever possible, or Bitdefender VPN to protect your data on public Wi-Fi.

What To Do if You Fall Victim to an Online Shopping Scam

Falling victim to an online shopping scam can be distressing, but quick action can help minimize the damage. If you suspect you've been scammed, follow these steps:

Contact Your Financial Institution

Immediately reach out to your bank or credit card company if you've shared financial information. Inform them of the potential fraud so they can:

- Monitor your account for suspicious activity

- Cancel compromised cards

- Issue new cards with updated information

- Dispute any fraudulent charges

2. Protect Your Credit

If personal information was compromised, consider placing a security freeze on your credit reports. This helps prevent scammers from opening new accounts in your name. Contact all three major credit bureaus (Experian, TransUnion and Equifax) to initiate this process. Alternatively, you can place a fraud alert, which requires businesses to verify your identity before issuing credit in your name.

3.Update Your Passwords

Change passwords for any compromised accounts, especially if you used the same password across multiple sites. Use strong, unique passwords for each account, and consider using a reputable password manager to keep track of them securely.

4. Notify Online Marketplaces

If the scam occurred on a platform like Amazon or eBay, report the incident to their customer service. Many marketplaces have policies to protect buyers from fraudulent sellers and may offer refunds or other assistance.

5. Report the Scam

File a report with relevant authorities:

- The Federal Trade Commission (FTC) at ReportFraud.ftc.gov

- Your local police department

- The Internet Crime Complaint Center (IC3)

These reports help authorities track trends and potentially catch scammers.

6. Stay Vigilant

Monitor your accounts closely in the coming months. Scammers may hold onto your information and attempt to use it later when you least expect it. Consider using Bitdefender Digital Identity Protection, which will monitor you and alert you if your personal information appears on the internet.

7. Spread Awareness and share Scamio

Share your experience with friends and family and on reputable review sites. Your story could help others avoid falling victim to similar scams. Also, share Scamio with them to help them stay safe.

FAQs

Can I get my money back if I was scammed online?

Your chances of recovering money from an online scam depend mainly on your payment method. Credit cards typically offer the best protection through chargebacks, while major online marketplaces often have buyer protection policies. Bank transfers might be reversible if reported quickly, but cryptocurrency or wire transfers are usually irretrievable. Regardless of the payment method, it's crucial to act fast. Contact your financial institution immediately and report the scam to authorities like the FTC or local police. While they may not recover your money directly, your report can help prevent others from falling victim to the same scam.

How can I tell if an online review is fake?

Spotting fake reviews requires attention to detail and a bit of skepticism. Be wary of reviews with overly positive or negative language that lack specific details about the product or service. Look out for repetitive phrasing across multiple reviews and sudden spikes in positive feedback. Check reviewer profiles; new accounts with few other reviews can be suspicious. On platforms like Amazon, "Verified Purchase" labels add credibility. It's also helpful to use online tools like Scamio to analyze reviews and compare scams reports across different platforms..

How can I tell if an online deal is a real bargain or a potential scam?

Compare the price with other reputable retailers; while genuine deals offer discounts, be wary of prices significantly below the market average. Research the seller's reputation and history. Legitimate bargains typically provide detailed product information, clear images, and transparent policies, while scams often lack these.

Be cautious of high-pressure tactics or claims of extremely limited stock. Consider the context of the deal—is it a logical sale event or promotion? If unsure, verify deals through official brand channels or authorized resellers.

Remember, genuine bargains should withstand scrutiny. Trust your instincts, and don't let fear of missing out cloud your judgment. While great deals exist, if something seems too good to be true, it often is. Always prioritize your online security when pursuing attractive offers.