With over $240 billion in U.S. online sales and nearly $15 billion in holiday retail expected in Canada, shoppers across North America should be wary of scams. Fraudsters are using tactics like fake ads offering deep discounts on hard-to-find items to trick consumers.
Social media has become a new target for scammers, with popular products such as beauty items and viral tumblers leading to a 125% increase in scam reports to the BBB last year. This BBB update, building on previous investigations from 2021 and 2022, highlights the rise in scams, the financial losses incurred, and shares real-life stories to help consumers avoid falling victim to these holiday season scams.
Key findings reveal that nearly everyone is at risk of falling victim to online shopping scams, given the widespread nature of e-commerce. Pet scams, particularly involving rare animals, make up a significant portion of reported cases, as scammers use these pets to entice buyers. These online purchase scams are global in scope, with countries around the world losing substantial amounts due to fraudulent and misleading offers. In addition, more than 80% of reports to the BBB indicated financial losses, making online purchase scams one of the most frequently encountered types of fraud.
The BBB offers Tips to Spot This Scam:
- Research a seller before purchasing
- Compare item to a trusted retailers’ prices and shipping windows
- Don’t trust a social media advertisement outright
- Be extra alert when buying a viral item
- Avoid sales offering multiple items for the price of one
- Use a credit card
- Utilize BBB’s scam survivor toolkit
If you’ve fallen victim to an online purchase scam, report it to BBB Scam Tracker. Your report can help uncover scam tactics and protect others from similar fraud.
