An online shopping scam can lure in even the savviest shopper. Let’s look at these schemes, how they work and how to keep yourself from falling victim.

How online shopping scams work

Scammers employ a variety of creative tactics to appear legit:

• Fake websites and ads. Here, fraudsters create fake websites or ads that mimic legitimate retailers, offering popular branded items at ridiculously low prices. Once payment is made, the promised items never show up. In some cases, a counterfeit item of poor quality arrives at the customer’s door.
• Social media deception. Scammers set up fake profiles or pages on social media platforms, promoting deals that seem too good to be true.
• Phishing emails. Victims get emails appearing to be from reputable retailers, prompting them to click on malicious links or provide personal info, leading to unauthorized transactions or identity theft.

Red flags to watch for

Watch out for these warning signs, which can alert you to an online shopping scam:

• Deals that are too good to be true
• Requests for unusual payment methods like wire transfers, gift cards or cryptocurrency
• Lack of business contact information
• Poor website design and spelling errors

Protective measures

Don’t get caught in a shopping scam! Take these steps to avoid falling victim:

• Research sellers. Before making a purchase, look for reviews and ratings.
• Verify website security. Ensure the website uses HTTPS, indicated by a padlock icon in the address bar, which signifies a secure connection.
• Pay with a credit card. Credit cards can offer better fraud protection than debit cards and allow you to dispute unauthorized charges easier.
• Avoid public Wi-Fi for transactions. Only use a secure, private connection when making purchases online.

Steps to take if scammed

If you’ve fallen for an online shopping scam, contact your credit union, bank or credit card company immediately to initiate a chargeback or freeze your account. Next, file a complaint with the Federal Trade Commission (FTC) at reportfraud.ftc.gov and your local consumer protection agency. Keep an eye on your checking and credit card statements for any unauthorized transactions. If you created an account on the fraudulent site, be sure to change your passwords for any other accounts that use the same or similar credentials. Finally, share your experience with friends and family to prevent them from falling victim to similar scams.

Stay safe!