Online Shopping Scams To Watch Out For

Written by:

Baylor Cox

Reviewed by:

• Erin Frizell

E-commerce, or the buying and selling of products online, has been growing exponentially for years and that trend is expected to continue. According to Forbes, 23% of all retail purchases will occur online by 2027. The more online shopping takes place, the more we see online shopping scams growing as well. Below you can review some of the most common online shopping scams that you should be on the lookout for as you shop online. 

Amazon Service Fraud Scam 

In this scam, a scammer posing as an Amazon representative will call a target to notify them about an alleged problem with their Amazon Prime account. The victim is prompted to download an app or tool on their computer or mobile device, which usually turns out to be malware. This will give the scammer remote access to “help them resolve the problem” at hand. 

If they comply, the victim will be vulnerable to the hacker and any information stored on that device. 

The scammer may even instruct the target to log onto their financial accounts, supposedly so the scammer can compensate the target for their time. Unfortunately, doing this will give the scammer direct access to the victim’s accounts. 

Phishing Emails 

Phishing emails are nothing new but can be difficult to spot among the many promotional emails flooding your inbox. 

Here are two common variations of phishing scams: 

Account Verification 

The victim receives an email appearing to be from a retailer they shop at frequently. It informs them that someone has tried to hack into their account. 

The scammer asks the target to verify their account or update their account details through an embedded link. Doing so, however, will give a scammer access to their account. The scammer can rack up a considerable bill and leave the victim to pick up the tab. 

Order Confirmation 

The victim receives an email asking them to confirm an order made through Amazon or another large retailer. The target needs to verify the order details through an embedded link. Clicking on the link will allow scammers to harvest their personal information such as passwords and anything else entered on the site and may even download malware onto the user’s computer. 

Whenever you go to click on a link in an email, hover over it to see where you will be taken. Make sure to inspect the web address to make sure that there are no typos or missing letters.  

Delivery Issues 

Delivery scams usually take the form of a message appearing to be from USPS, FedEx, or another delivery service, informing the victim of a “delivery issue” with an order. The scammers ask to confirm or update their information within a link that they provide. 

Accessing the link and updating your information will give the scammer access to your financial information and open the door to identity theft. 

In another variant of a delivery scam, the scammers ask the target to pay a fee for covering a customs charge or tax. These are fake fees invented by the scammer, who will pocket any money paid. 

If you’ve been targeted by a scam pretending to be the United States Postal Service, there’s an entire organization dedicated to stopping and protecting Americans from these crimes called the United States Postal Inspection Service (USPIS). Report mail fraud, identity theft, mail theft, and cybercrime to USPIS at uspis.gov/report. 

Fake Gift Scam 

Another type of scam on the rise with the increase in online shopping is the fake gift scam, which involves a purchase that never arrives. 

The victim, lured in by an ad promising a super-low price on a desired item, rushes to complete their purchase without researching the seller. Once the transaction is complete, the seller disappears, and nothing ever arrives. If the website is still visible, there’s no way to contact someone to get a refund. This scam is widespread on social media sites and website ads. 

In this kind of scam, someone is impersonating a business and should be reported to the Federal Trade Commission at reportfraud.ftc.gov. 

How to Avoid Online Shopping Scams 

Follow these tips to help avoid scams when shopping online: 

• Don’t open links in emails sent from unverified contacts. 

• Never allow a stranger to access your device or accounts. 

• Don’t share sensitive information on the phone or online with an unknown contact. 

• If contacted by an alleged representative of Amazon or another large company about an issue with your account, hang up, head to the company’s website directly, and login to your account to see if a problem is actually present. 

• Always keep the privacy and spam settings on your computer and mobile devices turned to their strongest available settings. 

• If you have an issue with an ordered item, contact the retailer directly through their site and not through a pop-up ad appearing to represent them. Also, do not click any “support links” that are posted on troubleshooting forums, as they may take you to illegitimate service sites. 

• Only purchase items from reputable sellers. When shopping on a new site, look for a physical address, a customer service number, and copy that is free of spelling errors and typos. 

This article is for educational purposes only. WeStreet Credit Union makes no representations as to the accuracy, completeness, or specific suitability of any information presented. Information provided should not be relied on or interpreted as legal, tax or financial advice. Nor does the information directly relate to our products and/or services terms and conditions.