Spotting and avoiding online shopping scams

Shoppers are increasingly, and exclusively, shopping online rather than shopping at brick-and-mortar stores. The retail landscape has seen a drastic transformation in the last 10 years and unfortunately, it’s a huge gain for cybercriminals.

The prevalence of online scams has continued to rise, with a significant portion of reported scams involving online purchases. The FTC recently shared that people lost $10 billion to scams last year, and online shopping ranked #2 on its list of top fraud types for the year. In the current climate, staying vigilant while shopping online is paramount to protecting oneself from falling victim to these scams.

To help you keep your guard up while shopping online, we’ve rounded up common online scams to be aware of. Learn more about how these scams work and take the necessary precautions to protect yourself!

Copycat retail websites and mobile apps

Scammers create a faux e-commerce site or app that mimics trusted retailers. The platform’s design, logo, slogan and URL can be easily mistaken for the real retailer. Their hook is to offer steep discounts on products and promises like free shipping and overnight delivery. You may never end up receiving the purchase, or you get counterfeit, low-quality or damaged merchandise. They might be imposters if:

•    They’re offering significant bargains, and the deals seem too good to be true.
•    There is questionable website design and content (i.e., grammar mistakes, misspellings and other errors – these are typical red flags).
•    There are limited or suspicious ways to contact the company.
•    The URL addresses have strange names or characters or unusual domains.

So, before you click that "buy" button, take a closer look. Don't get duped by these copycat scammers.

Social media scams

It’s not hard to fall for it: You're just casually scrolling through your Instagram or TikTok feed, and bam! A sponsored ad pops up with an unbelievable deal. It's from some random company you've never heard of, but hey, the offer seems too good to pass up, right? Well, hold on. Social media platforms like Instagram and TikTok have turned into playgrounds for scammers, and they're getting pretty crafty with their tricks.

These scammers use sponsored ads and targeted campaigns to reel you in with flashy deals, often throwing in claims of limited-time offers or scarcity to ramp up the pressure. They know just how to play on our impulsive nature, getting us to whip out our wallets without even thinking twice. Before you hit that buy button, take a breather and do a bit of digging. Don't let those flashy ads cloud your judgment. It's better to be safe than sorry when it comes to dodging social media scams.

Internet auction scams

Online auction sites (like eBay and Poshmark) operate like a massive virtual flea market where merchandise is up for trade. Buyers bid on items and the highest bidder is expected to buy the item as the auction closes. Next, the buyer and seller arrange for payment and delivery.

Auctions are a great platform for selling a wide variety of items at a great value; however, fraud is a major consumer concern. Fraud involves misrepresentation or nondelivery of an advertised product, untimely delivery and compromised bank accounts. Before you bid on anything, think about taking these steps to protect yourself and your wallet.

•    Get details on how the auction works and buyer/seller obligations.
•    Look into transaction/shipment insurance and how the site resolves problems.
•    Learn as much as you can about the seller, including feedback, reviews, return policies, etc.
•    Make purchases using a third-party payment company or a credit card because it’s easier to dispute charges and avoid financial loss.

Online pet adoption scams

These heart-wrenching schemes prey on the emotions of prospective pet owners, promising adorable companionship while leaving victims devastated and taken advantage of. The ruse works when a perpetrator, pretending to be a breeder, posts a fake photo of a pet — or the scammer acts as a devastated owner desperate to rehome their pet as soon as possible. You think you’ve found the newest furry member of a family, only to find out that you’ve been duped, and the scammer disappeared with your money. To avoid online pet adoption scams:

•    Research the seller. Check reviews and watch for red flags.
•    Insist on video calls. Ensure the pet exists before committing.
•    Avoid upfront payments. Pay upon receipt or use secure methods.
•    Visit in person. Meet the pet and assess its living conditions.
•    Trust your instincts. If it feels off, proceed with caution or walk away.
•    Consider adoption. Instead of shopping, consider adopting from reputable shelters or rescue organizations.

It can feel euphoric to buy something online, or maybe you’re quickly going through the steps to get a necessity. Either way, it’s easy to ignore the risks of being scammed and rush into making an online purchase. You can learn more about online shopping scams from the Better Business Bureau® and learn more about scams by visiting our Learning Center.