E-commerce has been growing and expanding for years now but, in 2020, its household penetration not just in the United States but all over the world further increased.
When the pandemic hit, lockdowns were imposed. People were forced to remain inside their homes for months on end to slow the spread of the virus that causes COVID-19. While supermarkets and other businesses deemed essential remained open throughout the past year, consumers turned to online shopping to procure their needs without going out of their houses.
Shopping online was the safe option. The goods are delivered straight to their doorstep by a reliable courier service company. There is no circumstance where an infection could happen. The customer feels protected from the spreading illness.
However, the past year also saw a boost in online shopping scams
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Online Shopping: A Playground for Scammers
Scams in e-commerce are nothing new, but there has been an increase in activity during the pandemic. The Better Business Bureau of Eastern North Carolina revealed that, since March 1, there have been $25,663 recorded losses to online shopping scams across its 33-county service area.
It is not just happening in the U.S. An increase in online shopping scams has also been reported in other countries. In the United Kingdom, the number of fraud cases rose by 44 percent over the year to 95,531. In Australia, losses to online shopping scams increased by 500 percent.
A huge portion of those who have fallen victim to online shopping scams includes young people — those who access the internet more frequently. However, scammers have been tricking consumers across all age groups.
Reports revealed that the items that victims purchased and turned out to be scams were clothing, home decor, rugs, and others. However, large losses that cost over $500 were pets.
The scammer will usually post photos of items on sale on social media, typically Facebook, to advertise. When a potential victim expresses interest, the scammer would ask for a deposit or the full payment, promising to ship the product out after. However, after the transaction, the victim will stop receiving responses from the scammer, and they will never receive the item they purchased.
Others were sent products that were far from what they purchased. In one case, the customer purchased a beautiful sea glass Christmas tree but instead received a wooden gnome.
Because of the nature of the transaction, it would be a challenge to go after the crooks. However, becoming a victim of online shopping scams can be prevented by learning how to recognize a fraudulent transaction.
Fake Shopping Websites
Scammers are creating dozens of websites that appear legitimate. These websites have all the elements of a trustworthy e-commerce platform: a privacy policy, terms of service, the little padlock icon on the browser, an “s” after the http, and even contact information and a shipping address. The scams have become so sophisticated that it is harder to see the signs that it is a fake online store.
That is why you need to dig a little deeper. Search through every web page. Read the product descriptions and the reviews. You will probably find several red flags to warn you that it is a scam. If you are unsure, just search for any mentions of the website in review platforms, internet forums, and social media. You might find the experience that other people had with the merchant.
Impossibly Low Prices
If it is too good to be true, it probably is. Scammers will offer prices that are very cheap to entice potential victims to make a purchase. Consumers think that they found a bargain but, in fact, they were being conned.
Consumers should also be wary of signing up to free trials. They may have unwittingly authorized a monthly charge on their credit card. Read everything before accepting anything.
Use Your Credit Card for Purchases
Despite the precautions you take, there is still a possibility that you will become a victim of a scam. As an added protection, use your credit card to make a purchase. Doing so will make it easier to dispute the charge and get your money back in case the transaction turns out to be a scam.
The internet is filled with scammers. Consumers should always be wary of trusting anyone, including websites that look real and official. When making a purchase, it is better to stick with the e-commerce platforms that are tried and tested. And, if you become a victim of an online shopping scam, collect a record of the transaction and report it to the proper authorities.