Online Shopping and E-Commerce Scams

Online shopping scams exploit the convenience of e-commerce, creating fake stores, advertising non-existent products, and selling counterfeits. With 70-90% discounts and professional-looking websites, these scams trick millions of shoppers annually.

The Scale of the Problem

2024 Statistics:

• $11 billion lost to online shopping fraud
• BogusBazaar operation: 75,000+ fake shopping websites discovered
• 44% of social media fraud involves online shopping
• $162 median loss per victim
• Holiday season (Nov-Dec): 200% increase in shopping scams
• Counterfeit goods: $1.8 billion in seizures by U.S. Customs

Types of Online Shopping Scams

1. Fake Online Stores

The Scam:

• Professional-looking e-commerce website
• Sells popular products at steep discounts (70-90% off)
• Accepts payment but never ships product
• OR ships cheap counterfeit version
• Site disappears after collecting payments

BogusBazaar Case (2024):

• Network of 75,000 fake shopping sites
• Impersonated major brands
• Identical site templates with different domains
• Combined losses: $600+ million

2. Social Media Marketplace Scams

Common on: Facebook Marketplace, Instagram Shopping, TikTok Shop

Scam variations:

• Seller requests payment outside platform (no protection)
• "Ships" item but tracking never updates
• Sends empty box or wrong item
• Overpayment scam (sends fake check, asks for refund of difference)
• Fake tickets for concerts, sports, events

3. Fake or Malicious Shopping Apps

The Scam:

• Fraudulent shopping app in app stores
• Mimics legitimate retailers (Amazon, Walmart, etc.)
• Steals payment information
• May install malware on device

2024 Impact:

• 19,000 fake shopping apps removed from app stores
• Many impersonate Temu, Amazon, Shein

4. Non-Delivery Scams

The Scam:

• Legitimate-looking website or seller
• Accepts payment
• Provides fake tracking number or no tracking
• Product never arrives
• Seller becomes unresponsive

Common products:

• Electronics (iPhone, AirPods, gaming consoles)
• Designer fashion items
• Collectibles and toys
• High-demand items (limited releases, holiday items)

5. Counterfeit Product Scams

The Scam:

• Advertises authentic brand-name products
• Ships obvious fake or low-quality knockoff
• Product may be unsafe (electronics, cosmetics, pharmaceuticals)

Commonly counterfeited:

• Luxury goods (Louis Vuitton, Gucci, Rolex)
• Electronics (AirPods, chargers, phones)
• Cosmetics and skincare
• Medications and supplements

6. Fake Ticket Sales

The Scam:

• Sells tickets for concerts, sports, festivals
• Tickets are counterfeit, invalid, or don't exist
• Victim discovers at venue entrance

Common platforms:

• Social media (Facebook, Instagram, Twitter)
• Craigslist
• Third-party ticket sites
• Direct messages

7. Influencer Scams

The Scam:

• Fake influencer account promotes products
• OR compromised real influencer account
• Links to fraudulent store
• Products never arrive or are counterfeit

2024 Statistics:

• 42% increase in influencer-linked scams
• Average loss: $400 per victim

8. "Brushing" Scams

The Scam:

• Receive unordered package (usually cheap item from China)
• Address label has your name and address
• No return address or invoice
• Scammer uses your info to post fake verified reviews

Purpose: Create fake "verified purchase" reviews on Amazon, etc.

Risk: Someone has your personal information and may be using it fraudulently.

9. Phishing via Fake Order Confirmations

The Scam:

• Email claiming order confirmation for expensive item
• You didn't order anything
• Email says "Cancel within 24 hours" with link
• Link leads to phishing site or malware

Goal: Panic you into clicking malicious link.

10. Subscription Trap Scams

The Scam:

• "Free trial" or cheap initial purchase
• Hidden subscription terms in fine print
• Charges recurring fees
• Extremely difficult to cancel

Common products:

• Dietary supplements
• Skincare products
• Software/app trials

Red Flags: Identifying Shopping Scams

🚩 Website red flags:

• Extreme discounts (70-90% off retail)
• New domain (registered weeks/months ago) - check WHOIS
• Poor design or numerous spelling/grammar errors
• No contact information or only contact form
• Copied content from legitimate retailers
• No physical address or fake address
• Generic name (bestdeals-shop[.]com, cheap-products[.]net)
• Suspicious reviews (all 5-star, generic comments, same wording)

🚩 Seller red flags:

• Insists on payment outside platform (no buyer protection)
• Refuses PayPal Goods & Services or credit card
• Wants payment via gift cards, wire transfer, cryptocurrency
• Can't provide additional photos or details
• Recently created account with no history
• Pressures you to "buy now before it's gone"
• Price far below market value

🚩 Product red flags:

• Stock photos only (can reverse image search)
• Product description copied from other sites
• Claims of "authentic" luxury goods at fraction of price
• Ships from China for allegedly US-based brand
• No warranty or return policy
• "Limited time offer" creating urgency

🚩 Payment red flags:

• Only accepts untraceable payment methods
• Asks for payment before meeting (local sales)
• Requests personal information beyond what's needed
• Insecure checkout (no HTTPS/padlock icon)
• Redirects to strange payment processor

🚩 Communication red flags:

• Broken English or unusual phrasing
• Generic responses that don't answer your questions
• No phone number or customer service
• Seller unresponsive after payment
• Pushes to complete transaction quickly

Verification Procedures

Before Purchasing:

1. Research the website/seller:

   • Google the site name + "scam" or "reviews"
   • Check domain age: WHOIS.net (brand new = red flag)
   • Look for independent reviews (not on their site)
   • Check Better Business Bureau (BBB.org)
   • Search for physical address on Google Maps

2. Verify contact information:

   • Look for phone number and physical address
   • Call the number to verify it's real
   • Check if address is residential or commercial

3. Check for security:

   • HTTPS (padlock icon in browser)
   • Secure payment processor (not just bank transfer)
   • Privacy policy and terms of service
   • Verified badges (if applicable)

4. Reverse image search:

   • Use Google Images, TinEye
   • See if product photos are stolen from other sites
   • Stock photos used across multiple sketchy sites = scam

5. Compare prices:

   • Check same product on Amazon, eBay, official retailer
   • If price is 50%+ below everywhere else, be very suspicious
   • "Too good to be true" usually is

6. For social media/marketplace:

   • Check seller's profile and history
   • Look for reviews/ratings
   • Meet in person for local sales (public, safe location)
   • Use platform's payment system (buyer protection)
   • Never wire money or send gift cards

Safe Payment Methods:

Best protection:

• ✅ Credit cards - best fraud protection, can dispute charges
• ✅ PayPal Goods & Services - buyer protection (not Friends & Family)
• ✅ Platform payment systems (eBay, Etsy built-in checkout)

Limited or no protection:

• ⚠️ Debit cards - less fraud protection than credit cards
• ⚠️ Venmo/Zelle/Cash App - no buyer protection for purchases
• ❌ Wire transfer, gift cards, cryptocurrency - untraceable, no recourse

Never pay via:

• Gift cards (iTunes, Amazon, etc.)
• Wire transfer (Western Union, MoneyGram)
• Cryptocurrency
• Payment apps set to "Friends & Family"

Red Flags to Walk Away:

If seller or website:

• Only accepts untraceable payment
• Pressures immediate purchase
• Won't provide additional photos/proof
• Has just-created account/domain
• Offers luxury goods at impossible prices
• Has no contact information
• Site is nearly identical to other suspicious sites

Real-World Examples

Case Study 1: BogusBazaar Fake Store Network (2024)

Operation: 75,000+ interconnected fake shopping sites Victims: Estimated 850,000+ Total losses: $600+ million

The scam:

• Massive network of fake e-commerce sites
• Impersonated major brands (Nike, Adidas, The North Face, etc.)
• Professional-looking sites with identical templates
• Offered 70-80% discounts on brand-name products
• Advertised heavily on social media
• Accepted credit cards, appeared legitimate
• Either never shipped or sent cheap counterfeits
• Sites disappeared after collecting payments

Red flags:

• Domain names were variations (nike-outlet-store[.]com, not nike.com)
• All sites had similar layouts and designs
• Extreme discounts
• Domains registered recently
• Shipping from China despite claiming US warehouse
• No phone customer service

Result: Most victims unable to recover money. Some disputed credit card charges successfully. Operators likely in China.

Case Study 2: Facebook Marketplace Puppy Scam (Holiday 2024)

Victims: Hundreds of families Average loss: $800 per victim

The scam:

• Scammers posted adorable puppy photos on Facebook Marketplace
• Listed purebred puppies at good prices ($500-$1,000)
• Claimed to be local breeders
• After deposit, claimed unexpected shipping fees, vet costs
• Requested additional payments via Zelle, Venmo
• Puppies never delivered; scammers vanished
• Same scammer used multiple accounts

Red flags:

• Photos were stock images (reverse search revealed)
• Seller had new Facebook profile with no friends
• Refused video call to see puppies
• Insisted on payment outside Facebook (no buyer protection)
• Story kept changing (shipping issues, vet emergencies)
• Pressure to "secure" puppy with quick payment

Result: Money lost (Zelle/Venmo have no buyer protection). Puppies didn't exist. Photos stolen from legitimate breeder websites.

Case Study 3: Fake Concert Ticket Scam (Summer 2024)

Event: Taylor Swift Eras Tour Victims: 2,000+ fans Total losses: $1.2 million

The scam:

• Scammers created fake ticket listing sites
• Listed tickets for sold-out shows at face value
• Professional-looking website with countdown timers
• Accepted credit cards
• Sent fake confirmation emails
• Victims discovered tickets were invalid at venue

Additional scam layer:

• Social media accounts claiming to sell tickets
• Used fake Ticketmaster look-alike sites
• Instagram/Twitter DMs offering "extra tickets"
• Requested payment via Venmo/Zelle

Red flags:

• Sites were not official Ticketmaster/AXS
• Tickets for completely sold-out shows "available"
• Pressure to buy immediately
• Payment via non-refundable methods
• Domain registered days before tour announcement

Result: Fans lost money and couldn't attend concert. Some disputed credit card charges successfully. Social media scammers impossible to track.

Case Study 4: Amazon Fake Review "Brushing" (2024)

Victims: 10,000s of people receiving packages Nature: Identity exploitation

The scam:

• Victims received small packages they didn't order
• Items: cheap rings, sunglasses, seeds, trinkets
• Shipped from China
• Label had correct name and address
• No return address or invoice
• Scammers used victims' info to create fake accounts
• Posted fake "verified purchase" reviews on Amazon

Risk to victims:

• Personal information (name, address) in scammer database
• Potential for future identity theft
• Amazon account may be compromised

What victims should do:

• Report to Amazon as unauthorized purchase
• Check Amazon account for unauthorized activity
• Change Amazon password
• Monitor credit reports

Result: Difficult to stop completely. Amazon removes fake reviews when found but new ones appear daily.

Protection Strategies

Safe Online Shopping Practices:

1. Shop from reputable retailers:

   • Amazon, Walmart, Target, Best Buy
   • Official brand websites (nike.com, not nike-outlet[.]com)
   • Established online retailers (Zappos, Overstock, Wayfair)

2. Verify website authenticity:

   • Check URL carefully (correct spelling, real domain)
   • Look for HTTPS and padlock icon
   • Check domain registration date (WHOIS)
   • Avoid sites with generic names

3. Use credit cards for online purchases:

   • Best fraud protection
   • Can dispute charges
   • Federal law limits liability to $50
   • Often $0 liability with card issuer

4. Enable purchase notifications:

   • Text or email alerts for all transactions
   • Immediately catches unauthorized purchases
   • Available from credit card and PayPal

5. Check reviews carefully:

   • Look for detailed reviews (not generic)
   • Check multiple review sites (not just retailer)
   • Be skeptical of all 5-star or all negative reviews
   • Use Fakespot or ReviewMeta to analyze Amazon reviews

For Social Media Marketplace:

• Meet in person for local purchases (public place, daytime)
• Use platform's payment system (buyer protection)
• Never wire money or send gift cards
• Check seller's profile and ratings
• Be skeptical of brand-new accounts
• Verify tickets through official seller

For New/Unknown Retailers:

• Start with small purchase to test
• Research company thoroughly before large orders
• Check return policy and customer service
• Save all confirmation emails and receipts
• Use virtual credit card numbers (if available)

For Deals That Seem Too Good:

• Compare prices across multiple sites
• If 50%+ below everywhere else, probably fake
• Check if product is even in stock elsewhere
• Research why price might be so low
• When in doubt, walk away

What To Do If You're Scammed

Immediate Actions:

1. Stop further contact with seller

   • Don't respond to requests for more money
   • Don't give additional payment information

2. Document everything:

   • Save all emails, messages, listings
   • Screenshot website and product descriptions
   • Save receipts and tracking numbers
   • Note dates of all communication

Report and Recover:

3. Contact your payment method:

   • Credit card: Dispute charge immediately (you have 60 days)
   • PayPal: Open dispute within 180 days
   • Debit card: Report fraud to bank immediately
   • Gift card: Contact card issuer (unlikely to recover)
   • Zelle/Venmo: Report to app, but recovery unlikely

4. Report to platforms:

   • Amazon/eBay/Etsy: Report seller, open case
   • Facebook/Instagram: Report scam account
   • Google Shopping: Report fake merchant
   • App Store/Google Play: Report fake app

5. File complaints:

   • FTC: ReportFraud.ftc.gov
   • FBI IC3: ic3.gov (especially for large losses)
   • Better Business Bureau: BBB.org/scamtracker
   • Retailer's brand: Report counterfeits to trademark holder

6. If shipped from overseas:

   • Report to U.S. Customs (counterfeits)
   • Report to USPS (mail fraud): uspis.gov

For Specific Situations:

Received wrong/counterfeit item:

• Don't use product (especially cosmetics, electronics, medications)
• Document with photos
• Dispute with credit card company
• Report counterfeit to brand

Brushing scam (unrequested package):

• Report to Amazon/retailer
• Check your account for unauthorized activity
• Change account passwords
• Monitor credit reports

Identity used for fake reviews:

• Report to platform
• Request removal of fake account
• Monitor for fraudulent activity

Prevent Future Scams:

• Use virtual credit card numbers for online purchases
• Enable transaction alerts
• Use password manager with strong, unique passwords
• Enable two-factor authentication
• Monitor credit reports (AnnualCreditReport.com)

Key Takeaways

• ✅ $11 billion lost to online shopping fraud in 2024
• ✅ BogusBazaar: 75,000+ fake websites operated as massive scam network
• ✅ Extreme discounts (70-90% off) are almost always scams
• ✅ Use credit cards for best fraud protection when shopping online
• ✅ Verify website legitimacy: Check domain age, reviews, contact info
• ✅ Meet in person for local marketplace purchases
• ✅ Never pay with gift cards, wire transfer, or cryptocurrency
• ✅ If it seems too good to be true, it absolutely is

Remember: Legitimate retailers rarely offer extreme discounts (70-90% off). Always verify website authenticity before entering payment information. Use credit cards for purchases to maintain dispute rights. When buying from individual sellers, use platform payment systems that offer buyer protection. A few minutes of research before purchasing can save hundreds or thousands of dollars.