Last year, nearly one-third of scams reported to BBB Scam Tracker by Canadians were about online purchase scams. With 73.3 per cent of those targeted losing money, online purchase scams ranked as the third riskiest scam in Canada according to the 2021 BBB Risk Report.
Research conducted by the Better Business Bureau found that more than half (53 per cent) of Canadians are shopping online more, and 56 per cent spent more time browsing online or social media. These increases are likely contributing factors to the increase in online related scams.
The 2021 BBB Online Purchase Scams Report also noted that the 18-24 age group were more likely to report losing money (81.1 per cent) verses all other age groups.
Online scams are vast and varied and encompass issues such as:
* Paying for items that never arrive or are of low quality or not as promised
* Getting a bill for unexpected import taxes and other last-minute charges
* Fake websites,
* Purchasing or receiving counterfeit goods,
* Subscription/free trial traps
An example of a common online fraud report involves a consumer responding to online ads on Facebook and Instagram. After placing a product order through those ads, victims received nothing or items that were counterfeit or inferior from what the ads promised. Scammers often take product photos or a landing page from legitimate businesses, post them on Facebook and Instagram and take online orders at websites they’ve created. This leads to complaints against legitimate businesses, as victims often do not realize they have lost their money to a scam versus the legitimate business the scammer was portraying.
Other emerging online scams include pet, vehicle and costly free trial scams. One Canadian consumer reported that she fell prey to a free trial scam because the advertisement included what was perceived as a Costco logo. Once she put personal and credit card information to get the free trial, she was charged multiple times afterwards, losing a total of more than $600. When the consumer contacted representatives, they never addressed her complaint nor offered her a solution or refund. In the end, the consumer requested to speak to a supervisor, but only fake contact information was given to her.
To avoid being victimized by online purchase scams, BBB suggests you consider the following tips:
• Don’t buy online unless the transaction is secure. Make sure the website has “https” in the URL (the extra s is for “secure”) and a small lock icon on the address bar. Even then, the site could be shady.
• Avoid making quick purchases while browsing social media. Scammers advertise websites that offer great deals or hard to find products, but either don’t deliver the product at all or deliver counterfeit products. Do more research on those products you found via online search.
• Check out the website before making a purchase:
- Check BBB.org to check a business’s rating and BBB accreditation status. Some may copy the BBB seal to legitimize themselves. If it is real, clicking on the seal will lead to the company’s BBB profile.
- Do an internet search with the company name and the word “scam.” This may locate other complaints about the site.
- Scamadviser.com can often tell you how long a website has been in operation. Scammers create and close websites regularly, so a site that has only been operating for a short time could raise red flags.
Verify customer reviews: Scammers frequently post positive reviews on their websites, either copied from honest sites or created by scammers. One trusted resource to check reviews is BBB.org. Be aware, some review websites claim to be independent but are funded by scammers. Look at the bad reviews first. These are more likely to be real and can help identify scams.
• Search for contact information: Use caution if the site does not have a Canadian phone number, or uses a Gmail or Yahoo business email address.
• Keep a record of what you ordered: Make a note of the website where you ordered goods. Take a screenshot of the item ordered, in case the website disappears or you receive an item that differs from what was advertised.
• Pay by credit card: Credit cards often provide more protection against fraud than other payment methods. Never use debit cards for online purchases.
• Report online shopping fraud to the right place:
- Better Business Bureau - file a complaint at BBB.org or report a scam at BBB.org/scamtracker.
- Canadian Anti-Fraud Centre - file a report at antifraudcentre-centreantifraude.ca or call 1-888-495-8501.
- Report ads that violate standards, copyright or other policies to the correct source such as: Facebook (facebook.com/business/help), Instagram (help.instagram.com), or Amazon.
- Your credit card company - Call the phone number on the back of the credit card to report the fraud and request your money back.
For the full report and highlights from the 2021 BBB Scam Tracker Risk Report, visit: BBBMarketplaceTrust.org/RiskReport.
Go to BBB.org/ScamTracker to report a scam, learn more about other risky scams on BBB.org/ScamTips.
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