From November 29 to December 2, consumers across North America are expected to spend billions during Black Friday, Cyber Monday, and Small Business Saturday deals. As the holiday season approaches, businesses of all sizes are competing for customers’ attention through promotions and advertisements across digital and physical storefronts. Reflecting the increase in purchasing behavior, Better Business Bureau expects an increase in scam activity targeting online shoppers throughout November and December.
In recent years, online purchase scams have risen to become one of the most frequent and costly issues encountered by consumers. In Texas, losses to these scams increased by nearly $1 million between 2022 and 2023, and reports to BBB Scam Tracker more than doubled. Across the nation this year, online shopping scam reports to the FTC and its data contributors (including BBB) have totaled more than $300 million in losses.
Some of the most frequently reported issues include:
–Misleading advertisements and unfulfilled guarantees.
–The product received does not reflect what was purchased (e.g., receiving headphones when buying shoes), or is an obvious counterfeit of a brand name product.
–The product purchased is never received and customer service contacts are unreachable.
–Undisclosed subscription services included in the initial purchase are difficult to remove due to unresponsive customer service and often include a higher recurring cost than anticipated or advertised.
As consumers get ready to take advantage of holiday deals, BBB provides the following guidelines to help them steer clear of fraudulent or unethical online sellers.
Be wary of steep discounts on high-demand or luxury products. Consumers should expect reasonable discounts on brand name or high-end products during Black Friday and Cyber Monday. However, be wary if the advertised price is a fraction of the product’s discounted price found on its official website or authorized retailers. It is unlikely a product that normally sells for $500 will be sold for $50, even during holiday deals.
Pay attention to website domains. If directed to a website through a social media advertisement, email link, or through other means, take a close look at the domain to make sure you’ve arrived at the correct website. Scammers are well-versed in making lookalike websites and will copy the exact design from the impersonated business. If you try to sign in to your account on a lookalike website – that information goes into their hands.
Use protected payment methods. Avoid online sellers who demand payment through unprotected methods, such as gift cards, wire transfers, bitcoin, or other direct transactions. If using a payment app, take the time to review the platform’s protection policies for business transactions and be wary of scammers who ask you to take specific steps to bypass those policies. For example, a common tactic of scammers is to ask for PayPal payments through its Friends and Family service, which aren’t covered b.
Login to online accounts using trusted methods. Scammers may attempt to target people through email or text claiming to represent fraud departments from banks, online marketplaces, or delivery services which require the recipient to ‘verify account activity.’ Avoid following any links or calling customer service numbers provided in these notifications. Instead, contact the business through a known and trusted method to verify the situation, such as through their official mobile app, website, or phone number listed on official documents or receipts.
For more tips and information on how to have a stress-free holiday shopping experience visit BBB.org/Holiday.
ABOUT BBB: The Better Business Bureau has empowered people to find businesses, brands and charities they can trust for over 110 years. In 2023, people turned to BBB more than 218 million times for BBB Business Profiles on 5.3 million businesses, and 80,000 times for BBB charity reports on about 12,000 charities, for free at BBB.org. Regional, independent BBBs can be found across the United States and Canada, including BBB serving the Heart of Texas which was founded in 1950 and serves 105 counties across Texas.
