10 online shopping scams to avoid

Daniel Ademola had always prided himself as being ‘street smart,’ believing that he could never fall victim to any form of scam because he had spent many years in Lagos enough to be able to identify any potential scam.

But little did he know that scammers are also always devising new methods of defrauding their targets every day.

With the proliferation of smart devices and social media platforms, scammers have taken their ‘trade’ online, defrauding people of their money.

According to an Israeli cyber research firm, Cybersecurity Ventures, cyber fraud is a growing threat and is expected to cost a whopping $6tn to the global economy by 2021.

Ademola, an Osun State indigene and graduate of political science, said last November as the holiday season approached, he was scammed N150,000 online through some shopping sites.

He said, “Around this time last year, I received some adverts from a shopping site that claimed it was offering 50 per cent discounts on goods because of the holiday season. They told me the goods would be sold at their normal prices if I didn’t take advantage of the offer on time.

“I saw a pair of shoes that cost N30,000 being offered for N15,000; there was also a shirt of N15,000 being offered for N7,500. I saw several offers, thinking they were juicy.

“Because I had been looking forward to such offers, I ordered some products for my wife and me totalling N150,000. The shopping site indicated the operators were based on Victoria Island, Lagos.”

Ademola said the goods were expected to be delivered latest two days after purchase, since he was also based in Lagos. But to his amazement, he did not receive the goods five days after purchase.

He said he decided to call those at the shopping site to enquire why the delivery of his goods was taking too long, however, he couldn’t believe what he was told.

He said, “They told me I needed to wait for more time because the goods were coming from China or wherever. I was shocked! I thought they had the products in their warehouse for them to have advertised them online.

“Let’s say the products were unavailable, they ought to have indicated ‘Sold out’ on them, and I would have bought other goods or gone somewhere else. I wanted convenience, that’s why I shopped online.”

Ademola said he waited for one more week, and then two weeks – and that was when it dawned on him to even visit the shopping site’s office at Victoria Island.

What he discovered was that the shopping company was never located at the address indicated on the website.

When Ademola called to find out what was going on, the shopping firm’s phone number was unavailable, only to find out his mobile had been blocked by the firm from calling.

“That was how I lost N150,000. I used to think I was ‘street smart,’ only for some guys to prove me wrong. I learnt my lessons, though,” he said.

Online shopping scams

According to Scam Watch, a firm based in Australia, online shopping scams involve scammers pretending to be legitimate online sellers, either with a fake website or a fake advert on a genuine retailer site.

Experts at Scam Watch say while many online sellers are legitimate, unfortunately, scammers can use the anonymous nature of the internet to rip off unsuspecting shoppers.

Scammers use the latest technology to set up fake retailer websites that look like genuine online retail stores. They may use sophisticated designs and layouts, possibly stolen logos, and even a ‘.com.’ domain name and stolen business number.

Many of these websites offer luxury items such as popular brands of clothing, jewellery and electronics at low prices. Sometimes you will receive the item you paid for but they will be fake, other times you will receive nothing at all.

A newer version of online shopping scams involves the use of social media platforms to set up fake online stores. They open the store for a short time, often selling fake branded clothing or jewellery. After making a number of sales, the stores disappear. They also use social media to advertise their fake website, so do not trust a site just because you have seen it advertised or shared on social media. The best way to detect a fake trader or social media online shopping scam is to search for reviews before purchasing.

As the holiday season approaches, it isn’t only retailers who want your money. Scammers and hackers are looking for ways to crack into your accounts and make off with your cash or your identity.

The US News & World Report identifies the following 10 types of online shopping scams that everyone should be cautious of.

Sham order confirmations

Although not an entirely new technique, the Senior Vice-President and Chief Information Security Officer at an American financial firm, Raymond James, says there seems to be an uptick in scams involving fake online orders. Victims receive an email that appears to be from a reputable retailer or a payment service like PayPal confirming a purchase.

“Your natural reaction is to say, ‘I didn’t buy that,’” Zolper says. Scammers will have included a link in the email that people can click to dispute or cancel the order.

After clicking on that link, victims will be asked to provide personal or payment information that will be used for identity theft or to make fraudulent purchases.

If you receive an email like this and are concerned someone has gained access to your shopping account, don’t click any links in the email. Instead, go to the retailer’s main page, log into your account from there and check for any fraudulent activity.

Bogus shipping notices

A variation of fake order scams involves messages purportedly from FedEx, UPS or the Post Office that notify recipients of a delayed shipment. The message may include a link to track the package.

However, clicking the link could download a virus onto your computer. If you’re expecting a package, visit the merchant site to receive tracking information, rather than clicking a link in an email.

There’s also an offline version of this scam, says Michael Gerstman, CEO of the Dallas-based advisory firm Gerstman Financial Group LLC. “You might find an official-looking notice in the mailbox,” he says. It could state that a delivery couldn’t be made for some reason and includes a number to call. Victims who call the number may then be asked to provide a credit card number or other information. “Anyone asking for personal information is a tip off that something is not right,” Gerstman says.

Shady email scams

Phishing scams are a tried-and-true method to steal personal information. They involve sending emails that look like official communications from trusted websites, but are actually forgeries.

“Right now, it’s becoming very app-driven,” Spence says. Emails may direct people to download apps that look legitimate but are harvesting data from unsuspecting users instead. Other fake apps may use Open Authorisation, known as OAuth, to connect to Google or Facebook accounts and access information there. Another common phishing scam involves emails warning that a failure to confirm personal details could result in an account being closed.

The best defence against phishing scams is to never click links in an email. Instead, manually type the web address into your browser to visit the site. That way, you can confirm whether a requested action is legitimate.

Cloned websites

People need to be wary of all unsolicited emails they receive, since it’s easy for scammers to clone a website to make it resemble a site you know and trust. They may send you a sale coupon that, when clicked, takes you to a fake website that looks just like the real site.

Keep in mind, criminals aren’t necessarily looking for your credit card information. The cloned site might simply ask you to log in and then redirect you to the real website so you never realise you were on a cloned page. Once a thief has your login credentials, he or she can access your account to make unauthorised purchases.

“It’s key to look for that lock symbol or the ‘https’ in the browser,” Spence says. That indicates the site is secure. Also pay attention to the URL address. Cloned site URLs will look similar to the site they’re replicating, but aren’t exactly the same. For instance, scammers might use a web address like Amazon-12345.com if they are trying to trick people into thinking they are on amazon.com.

Disappearing packages

Not every holiday scam happens online. Some criminals steal the joy of the season by swiping deliveries from front porches. They may cruise through neighbourhoods looking for deliveries left while residents are at work.

Installing a home security camera could help law enforcement identify and catch the thieves, but it might be easier to make arrangements so your packages won’t be left unattended by the door.

For instance, Amazon offers several special delivery options. Those with Key by Amazon smart lock systems can have packages delivered directly to a vehicle trunk or inside a house. There are also Amazon Hub Lockers at various locations throughout the country, which can receive packages for you to pick up at your convenience. For other retailers, having packages delivered to a workplace may be a more feasible option.

Fake charities

The spirit of the season makes people feel generous, and scammers capitalise on that. They may create fake GoFundMe pages for a seemingly good cause or impersonate legitimate charities on the phone.

“Everyone has to be very wary of donation solicitations,” Zolper says. To avoid charity scams, be deliberate about your giving. Do your research and don’t make phone donations to unsolicited callers. Any request to wire money overseas should be a red flag.

Sob stories on social media

Social media sites make it easy for people to share appeals for assistance, and that can make it a breeding ground for scammers. As the holidays approach, be aware that not every story shared on social media may be accurate.

If you want to give money to a GoFundMe account, it may be best to stick to those with a personal or local connection. That way, you can verify that the organiser is authorised to raise money for the recipient.

Fake story on relatives in distress

Although not limited to the holidays, another common scam involves fraudsters impersonating a relative facing a crisis. Seniors are commonly targeted, and they may get a call allegedly from a grandchild in trouble. This child may have supposedly been arrested or have some other urgent needs to have money wired to them.

Spence’s advice: “Hang up and call a family member to confirm.” Be equally cautious about emails outlining similar scenarios, such as a relative whose wallet and passport have been stolen while travelling.

Make contact with the relative through another means before offering any financial assistance.

Phony classified ad listings

Scams on Craigslist, Facebook Marketplace and similar online venues can be a problem year-round. Always meet in a public place to make a transaction and test any electronic devices before paying.

The lobby of a local police department or city hall can be a good meeting place.

If a seller has posted an item on a local classifieds site but says it needs to be shipped, that should be a red flag. The same goes for any situation in which a person wants you to cash a money order or cashier’s check and wire money to another party. Tickets to concerts and events can also be risky on classified ad sites since they may be fake or cancelled.

Intercepted data

Think twice before doing your Christmas shopping on the public Wi-Fi network at the library or coffee shop. “Do not jump on a public Wi-Fi to buy something,” Spence advises. Hackers in the area can intercept data over public systems, giving them access to account passwords, payment information and more.

While home networks are often more secure, they too can be prone to breaches. Use a virtual private network, or VPN, to add a layer of encryption and protection to all your browsing and online shopping activity.