Fraudsters create fake online stores and then use social media ads to lure you in to become a customer. But the products either don’t arrive, aren’t what you expected, or come with huge hidden fees.
Criminals can even use the information you supply when shopping — like your name, address, and credit card details — to steal your identity and drain your bank account.
The good news is you don’t have to stop shopping online to stay safe.
In this guide, we’ll teach you how to identify the most common online shopping scams and then walk through fifteen easy steps you can take to ensure you don’t get scammed while shopping online.
The 5 Most Common Online Shopping Scams of 2024
Online shopping scams can take many forms — from fake stores to counterfeit goods, fraudulent ads, and expensive fees. While shopping online, be on the lookout for these five common scams:
- Fake or spoofed online stores. The most common online shopping scam is when fraudsters create a fake shopping website or app. These sites may look legitimate (or even mirror a legitimate site), but they’re designed to steal your sensitive information and credit card numbers or sell you counterfeit and non-existent goods.
- Fraudulent social media ads. According to one study, 40% of all online shopping scams come from Facebook and Instagram ads [*]. These flashy ads often use hacked accounts and stolen photos, but the products either don’t arrive or are cheap knockoffs of what was advertised.
- Selling discounted “luxury” goods. Many online shoppers are scammed by looking at deals that are too good to be true. Criminals create ads for steeply discounted luxury items like designer sunglasses or bags. But the items either don’t arrive or are counterfeit. Be especially careful when shopping for popular or difficult-to-find items.
- Asking for non-traditional payment methods. One of the biggest red flags that you’re dealing with an online shopping scam is if the website asks for payment via wire transfers, gift cards, money orders, cryptocurrency, or payment apps like Venmo and Zelle.
- Using fake reviews to make you think they’re a legitimate site. Most of us believe an online store if they have reviews. But scammers use what’s called a brushing scam to create fake reviews on online shopping sites
The bottom line: Online shopping scams are getting harder to appear and may even show up in legitimate search results, pop up while you’re on social media, or get shared by friends. Don’t enter your payment or personal details until you’ve thoroughly vetted the site and feel confident that it’s legitimate.
How To Shop Online Safely: 15 Easy Tips
- Buy from online retailers you recognize
- Make sure you’re on a “secure” website
- Check the store’s design, pricing, and details for red flags
- Only use safe payment services
- Learn the warning signs of a scam email
- Beware of discount codes on social media
- Always check shipping costs and terms
- Never store your credit card details with a store
- Create strong, secure passwords
- Monitor your credit and bank statements
- Check to see if your account details were leaked
- Secure your devices with antivirus software
- Watch your back when shopping in public
- Use official shopping apps
- Sign up for identity theft protection
By following these quick and easy steps, you’ll avoid 99% of online shopping scams