October 10, 2023
American consumers should be on alert for online shopping scams as we enter our second holiday season in the global pandemic.
A record $207 billion is expected to be spent by online shoppers this holiday season as more consumers opt to shop from home to avoid crowds in stores. At the same time, COVID-19 led to a record $4.2 billion loss to online scammers last year with people spending more time online than ever before.
Amidst existing record fraud, there are myriad factors expected to create widespread havoc and worsen the situation over the final months of 2021.
This includes global supply chain issues as mail carriers, retailers, and government officials warn consumers that delivery times will be difficult to estimate. These supply chain shortages will make it harder for consumers to know if they are being scammed or if their purchase is simply stuck at a port.
They also caution to start shopping early as many products will have low availability and go out of stock quickly. Scammers, who grow savvier by the day, will no doubt monitor which products are in-demand and unavailable and create fake online stores and websites offering unavailable products to desperate consumers.
Although Amazon has one of the best reputations any business can ask for, the rise of Amazon and deliveries had led to a surge in package theft. This is when ‘porch pirates’ steal packages from outside homes or from mailrooms in apartment complexes.
ONLINE SHOPPING WAS THE NO. 1 MOST COMMON TYPE OF SCAM DURING COVID-19
As it became clear that online scams were skyrocketing due to the pandemic, the Federal Trade Commission began reporting on it in real-time. As of Nov. 16, the FTC found online shopping is the No. 1 most common scam with 57,769 complaints nationally. Online shopping is also the most common type of scam in 48 of 50 states except for Maine and Massachusetts.
As of Oct. 22, the FTC reports that online shopping is the No. 1 most common type of scam related to COVID-19 with 57,769 complaints nationally. Online shopping is also the most common type of scam in 48 of 50 states except for Maine and Massachusetts.
TOTAL VICTIM LOSSES BY STATE
Across all types of online scams, here are the most-and-least-scammed states in America according to the FBI’s IC3 2020 Report
TOP 5 ONLINE HOLIDAY SHOPPING SCAMS TO AVOID THIS HOLIDAY SEASON
- MISSING PACKAGE SCAM: Capitalizing on inevitable supply chain delays, scammers pretend to be FedEx and send a text message or email with a link to “track your package”. If clicked on, these phishing links steal your personal and financial information. They also leave voicemails or place a “missed delivery” tag on your door with a number to call and verify your information.
How to Avoid: Never click a link or call back a number from an unexpected delivery notice. Always contact the company directly using a verified number or website.
- SOCIAL MEDIA SECRET SANTA: A pyramid scheme called “Secret Sister” is circulating on Facebook. Scammers recruit “sisters” with the promise that if they buy a $10 gift for another member, they will receive 36 gifts in return. No gifts ever arrive, and they steal your personal information. A version of this scam includes exchanging bottles of wine.
How to Avoid: Do not respond to any “Secret Sister” contact or do any exchange “for the good of the sisterhood”. Be alert for variations of this pyramid scam.
- FAKE RETAILER HARD-TO-FIND PRODUCT SCAM: Early in the pandemic, the FTC had to shut down fake websites purporting to sell Lysol and Clorox. This year, look out for fake websites that advertise enormous sales on popular gift ideas that are out of stock everywhere else due to supply chain issues. Fake sites have a domain name with an extraneous letter or number, grammatical errors, and limited contact information.
How to Avoid: Research the company and read customer reviews. Google their name with the word “scam” to see if anything comes up. Never purchase via wire transfer, money order or gift card.
- HOLIDAY CHARITY GIFT SCAM: In addition to traditional gifting, people may donate to charity on someone’s behalf. This increased during COVID-19 and ramps up every year during the season of giving. Scammers pose as a fake charity to solicit fraudulent donations. Often, they pick a name that sounds close to a genuine and well-known charity.
How to Avoid: Search the charity on a public database such as BBB Wise Giving Alliance and Charity Navigator.
- FAKE INSTAGRAM GIVEAWAYS: Around the holidays, brands and influencers offer free product giveaways. Scammers are using a technique called “like-farming”, where they ask you to like or comment on their post on Instagram for a chance to win a holiday prize. They include malicious links and steal your personal information.
How to Avoid: Look for the blue checkmark which social media platforms use to verify a real page from copycats. Watch for typos and accounts with very little other content.
Avoid Being scammed with Social Catfish
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