E-shop Scams: Learn How to be a Smart Shopper

The researchers detected a high rise in fake e-shop scams targeting bargain-hunting consumers during festivals and holidays. Although the holiday season is ending,  it doesn't mean that shoppers are off the hook.  

According to a threat report, fake e-shops constitute 23% of all social media scams.  These numbers are quite high. By any chance, if you have done online shopping, then you are just one click away from being scammed. 

The rising economic uncertainty could be one of the reasons for the rise in e-shops, particularly around trade policy. With tariffs on Chinese imports reaching as high as 145% and retaliatory duties from China climbing to 125%, many consumers may hunt for pre-tariff prices on everyday goods. Cybercriminals can manipulate this shift. According to research, e-shop scams in the first four months of 2024 were as high as 790% compared to the same period in 2024, as fraudsters rush to meet the growing demand for bargain alternatives.

In the 2024 holiday season, it was detected that over 80,000 foul or forged online stores, countless of them vanished in thin air or reappeared with different brand names. These too-good-to-be-true deals on forged e-shops are developed to lure shoppers who are just trying to avoid high prices. 

Don’t be scared! Read below how these scams work, and how you can protect yourself from being the next target. 

 

It is more than just a bad purchase 

Forged e-shops look quite authentic but rather than delivering your product they deliver a scam. One common factor is that these e-shops scammers follow a tried-and-true formula. Here’s how they operate: 

 

Step 1: The Unbelievable Bargain 

• Coming across an ad for an expensive item at an unexpected lower price. 
• Majorly advertised on Instagram, Facebook, YouTube, and Google search results. 
• Scammers use AI-generated ads and forged reviews to make their sites look more convincing. 

 

Step 2: Fake Website, Real Payments 

• With stolen images, forged consumer reviews, and trusted badges, these scammed e-shops look next to real. 
• Cyber victims add their payment information and personal details to place orders. 

 

Step 3: Vanishing act 

• After the payment, consumers either receive low-quality counterfeit or nothing. 
• These scamming e-shops shut down within weeks, leaving no room for refund or countering. 

 

Step 4: Identity Theft and Fraud 

• The payment details entered by the consumer are further used for unauthorized purchases or sold on the dark web.
• These data such as email, phone number, and address are used for further phishing scams and identity thefts. 

 

Where are these forged e-shops popping-up? 

Scammers don’t just depend on random website traffic. They apply advanced targeting methods to trap victims, such as: 

• Social Media Ads: Majorly, the fake e-shops ads can be seen on facebook and instagram. 
• Manipulated Google Search Results: Scammers forge google search results and enhance SEO to push fake e-shops at top.   

 

How to Spot and Avoid the Fake e-shops?

To keep your wallet and identity safe, follow these steps to shop smartly and safely:   

• Check URL carefully: Look for spelling mistakes, extra characters, or unusual domain extensions, for ex: instead of .com, .shop, or .top.
• Verify the business: Search for reviews on authentic sites. If there are no reviews, then clearly a Scam.
•  Check missing Informations: If a business is legit, then they will display physical address and customer service contacts. If there is no phone number then definitely a Scam. 
• Beware of unexpected discounts: Any item which is expensive and sold at an extremely cheaper price, it's a Scam. 
• Check for secured protocol but don't trust blindly: A secure padlock is necessary, but not proof of legitimacy. Crafty scammers use it too. 
•  Think twice before clicking on any ad: Instead of clicking on any ad just go straight away to the retailer;s official website. 
• Use Secure Payment Gateways: Try to make payment with credit card instead of debit, avoid direct bank transfers, crypto or gift cards - these are scammers favorite. 
• Invest in Cybersecurity: Consider using a digital guardian; it will help you keep sensitive information safe and spot scams.

 

All Glitters are not Gold

Online shopping is one of the most convenient forms of shopping and will be there for a long time. It does come with cybercriminals. But now you are well-aware. You know what to look on those sites to identify whether they are authentic or just another scammer. Stay safe, shop smart, and keep your wallet out of the scammers’ reach.