The Impact of Online Shopping Scams
The exponential growth of the U.S. e-commerce market, projected to exceed $1.1 trillion in sales in 2023, has created the perfect storm for scammers to exploit unsuspecting online shoppers. The sheer volume of transactions and the anonymity of the internet make it easier for scammers to operate, posing a significant challenge for consumer protection and online security.
$358.7M
in losses reported to the FTC due to
online shopping scams in 2022
360,315
people reported online shopping scams
to the FTC in 2022
Learn more about common online shopping scams:
Fake Online Stores
Fake online stores refer to fraudulent websites or digital platforms that mimic the appearance and functionality of legitimate e-commerce stores. Operating under the guise of a reputable business, these deceptive platforms aim to dupe unsuspecting shoppers into making purchases.
RECOGNIZE:
Follow these guidelines to spot fake online stores:
- Look closely at the website design and functionality. Fake online stores often have substandard website design with low-quality graphics or broken links.
- Beware of unbelievable deals and prices. Fake online stores often use unrealistically low prices as bait to attract unsuspecting shoppers.
- Pay attention to the available payment options. Legitimate online stores generally offer a range of secure payment options—such as credit cards, PayPal or trusted third-party payment processors.
- Look for contact information or customer support. Legitimate online stores provide clear and accessible contact information.
- Beware of negative online reputation and reviews. Conducting a quick search for the store’s name or checking customer review websites can provide insights into the store’s reputation.
- If there are numerous complaints, steer clear of that online store.
REPORT AND RECOVER:
Follow these steps to minimize damage and protect yourself from further harm:
- Notify your bank or credit card company about the situation as soon as possible. Inform them that you suspect your information has been compromised.
- Change the passwords for your online banking, email and any other accounts associated with the compromised information, and be sure two-factor authentication is enabled.
- Regularly monitor your credit reports and accounts for any suspicious activity and report any unauthorized transactions immediately.
- Report it to the FTC—even if you didn’t provide financial or sensitive information—at ReportFraud.ftc.gov.
- Report it to your state attorneys general. Find your attorney general at USA.gov.
SCAMMERS MAY POSE AS:
Fashion and Apparel
Fake websites posing as well-known fashion and apparel brands offer counterfeit or non-existent clothing and accessories.
Electronics
Scammers create fake online stores that claim to sell the latest smartphones, laptops, gaming consoles and other electronic devices at attractive prices.
Beauty and Cosmetics
Fake online stores that appear to specialize in beauty, cosmetics or skincare claim to offer discounts from reputable brands.
Home Decor and Furniture
These fake online stores mimic legitimate home decor and furniture retailers, selling poor quality, counterfeit or non-existent products.
Online Pharmacy
Fake online pharmacies claim to sell medications at extremely low prices but deliver counterfeit, ineffective or non-existent drugs.
Seller Scams
Scammers post fake listings on e-commerce platforms, presenting themselves as trustworthy sellers offering desirable products. However, their intention is to defraud buyers by either never delivering the purchased items or providing substandard goods.
RECOGNIZE:
Follow these guidelines to spot seller scams:
- Be cautious of listings that offer products at unusually low prices compared to the market value. Research average prices for similar items to have a better understanding of reasonable pricing.
- Beware if there is a lack of detailed information. If a listing lacks essential details or uses generic descriptions, it may be a sign of a scam. Request additional information or images from the seller if needed.
- Examine the seller’s profile carefully. Newly created profiles with limited information or no feedback should raise concerns.
- Look out for unconventional payment methods. Legitimate sellers on reputable platforms offer secure payment options like credit card or PayPal.
- Pay attention to the seller’s communication and response time. If the seller avoids direct questions, fails to respond promptly or exhibits evasive behavior, that’s a red flag.
REPORT AND RECOVER:
Follow these steps to minimize damage and protect yourself from further harm:
- Notify your bank or credit card company about the situation as soon as possible. Inform them that you suspect your information has been compromised.
- Report the seller to the e-commerce platform’s customer support or fraud department.
- Regularly monitor your credit reports and accounts for any suspicious activity and report any unauthorized transactions immediately.
- Report it to the FTC—even if you didn’t lose money—at ReportFraud.ftc.gov.
- Report it to your state attorneys general. Find your attorney general at USA.gov.
COMMON GOODS SOLD BY FRAUDULENT SELLERS:
Limited Edition or Exclusive Items
They offer counterfeit versions of popular or high-demand branded items.
High-Demand Tech Gadgets
They exploit the desire for these products by offering them at enticingly low prices.
Event Tickets
They exploit the excitement and demand for tickets.
Health and Wellness Products
They make false claims about the effectiveness or safety of their products.
Pets
They create fake listings for pets that do not actually exist.
Buyer Scams
Scammers who pose as legitimate buyers on e-commerce platforms and engage in fraudulent activities during online transactions. The aim of a buyer scam is to deceive a seller and gain financial or material advantages.
RECOGNIZE:
Follow these guidelines to spot buyer scams:
- Be wary of buyers who pressure you to lower the price significantly or request special accommodations that seem unreasonable.
- Watch out for buyers who communicate poorly, using vague or generic messages that don’t address specific details about the item or the transaction.
- Exercise caution when buyers insist on unconventional payment methods. Legitimate buyers on reputable platforms typically utilize secure payment options like PayPal or integrated payment systems.
- Pay attention to the buyer’s profile and activity. Scammers may use newly created or unverified profiles with limited information and no transaction history.
- Beware of buyers who insist on using a specific third-party shipping service. Genuine buyers are usually open to standard shipping options.
REPORT AND RECOVER:
Follow these steps to minimize damage and protect yourself from further harm:
- Collect all evidence related to the fraudulent transaction, including transaction records, receipts and emails. These will be important when reporting the incident and seeking assistance.
- Report fraudulent buyers to the e-commerce platform’s customer support or fraud department.
- If you provided them with sensitive information, regularly monitor your credit reports and accounts for any suspicious activity and report any unauthorized transactions immediately.
- Report it to the FTC—even if you didn’t provide financial or sensitive information—at ReportFraud.ftc.gov.
5 COMMON BUYER SCAMS:
False Payment Claims
They claim that they have made a payment for the item but provide no invoice or receipt.
Item Not Received
They receive the item but falsely claim that it was never delivered, seeking a refund or a second item at no cost.
Chargeback Fraud
They claim unauthorized or fraudulent use of their card, even though they willingly made the purchase.
Return Fraud
They damage the item, switch it with a different product or falsely claim that the item is damaged.
Refund Manipulation
They make false claims, or threaten negative feedback or legal action to obtain undeserved refunds or discounts.
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