Skip to content

Need more flexibility? Find a part-time job that fits your schedule. Search the AARP Job Board.

 

FRAUD RESOURCE CENTER

Online Shopping Scams

The internet continues to reshape the way we shop, with retail apps and social media stores adding to consumers’ online options. Cybercriminals are keeping pace. Online purchasing ranked as the No. 1 fraud risk in the Better Business Bureau’s “2017 BBB Scam Tracker Annual Risk Report,” and credit-monitoring agency Experian registered a 30 percent increase in the rate of e-commerce fraud for that year.

The typical shopping scam starts with a bogus website or, increasingly, mobile app. Some faux e-stores are invented from whole cloth, but many mimic well-known retailers, with familiar logos and slogans and a URL that’s easily mistaken for the real thing. They offer popular items at a fraction of the usual cost and promise perks like free shipping and overnight delivery, exploiting the premium online shoppers put on price and speed.

Some of these copycats do deliver merchandise — shoddy knockoffs worth less than even the “discount” price you mistook for a once-in-a-lifetime deal on, say, Tiffany watches or Timberland boots. More often, you’ll wait in vain for your purchase to arrive. And your losses might not stop there: Scammers may seed phony sites, apps or links in pop-up ads and email coupons with malware that infects your device and harvests personal information for use in identity theft.

Clothing, cosmetics, electronics and pet goods are among the most common products in shopping scams, according to the BBB and, not surprisingly, these frauds flourish during the holiday season. You need not forgo the ease and endless selection of online shopping, but these precautions can help you make sure you get what you pay for.

Warning Signs

  • Bargain-basement prices. Internet security firm Norton says to be on guard if discounts exceed 55 percent.
  • Shoddy website design or sloppy English. Real retailers take great care with their online presentation.
  • Limited or suspicious contact options — for example, they only have a fill-in contact form, or the customer-service email is a Yahoo of Gmail account, not a corporate one.
  • URLs with extraneous words or characters (most stores use only their brand name in web addresses) or unusual domains — for example, .bargain, .app or a foreign domain instead of .com or .net.

Do's 

  • Do use trusted sites rather than shopping with a search engine. Scammers can game search results to lead you astray.
  • Do comparison shop. Check prices from multiple retailers to help determine if a deal you’ve seen really is too good to be true.
  • Do research an unfamiliar product or brand. Search for its name with terms like “scam” or “complaint,” and look for reviews.
  • Do check that phone numbers and addresses on store sites are genuine, so you can contact the seller in case of problems.
  • Do carefully read delivery, exchange, refund and privacy policies. If they are vague or nonexistent, take your business elsewhere.
  • Do look twice at URLs and app names. Misplaced or transposed letters are a scam giveaway but easy to miss.
  • Do pay by credit card. With card transactions, you can dispute questionable charges and withhold payment while your card provider investigates. Liability for fraudulent charges on your card is generally limited to $50, and some providers offer 100 percent purchase protection.

Don'ts

  • Don’t pay by wire transfer, money order or gift card. Sellers that demand these types of payments are scammers, and unlike with credit cards or reputable e-pay services, there’s little recourse to recover your money.
  • Don’t enter payment information unless a site’s URL starts with "https://" or the browser window shows a closed padlock. These indicate the site is encrypted and makes it more likely your data is secure.
  • Don’t provide more information than a retailer needs. That should be only your billing information and the shipping address.
  • Don’t use sites that require you to download software or enter personal information to access coupons or discount codes.
  • Don’t buy from sites that are very new, Norton recommends. Look for a copyright date, and use the WHOIS lookup service to see when a domain was created.

AARP Fraud Watch Network

Fight back against frauds and scams! Call our free Fraud Watch helpline at 877-908-3360 to speak with volunteers trained in fraud counseling. You can also sign up for Watchdog Alerts and check out our scam-tracking map.

More Resources

Published: Dec. 3, 2018

More From the Fraud Resource Center

Join the Discussion

0 | Add Yours

Please leave your comment below.

You must be logged in to leave a comment.

GO TO THIS ARTICLE