Shop Smart – How To Identify a Scam Online Store (2023)
Everyone I know is scared of being a victim of online shopping scams. Whether it’s What I ordered vs. What I got scam, or outright no product received scam, no one deserves to lose their money. So how do you stay alert and avoid falling into the trap? Here’s a concise guide.
In 2023 alone, the SabiReviews team exposed more than five hundred scam online stores. Interestingly, these scams come in different formats, such that even security alert people easily become preys.
Online Shopping Scam Formats – The Obvious Scams & Not So Obvious Scams
The Obvious Scam Online Stores
This kind of scam online shops are very easy to spot. The indicators are; too good to be true discounts, no business address on the website, lack of customer reviews option, limited payment options, recently registered website (no reviews online) etc.
In cases like this, the scam stores uses massive discounts to lure buyers on social media. Words such as ‘Buy Two Get Two extra’ ‘Closing Day Sale’. etc. Of course, people who patronize these scam stores do not receive their order. In some cases, the tracking number they’re given are fake.
Here’s are examples – feldira, Toldtiny.com, Winterduet, Tenderplanets, Edithaw, Sobeeriond, etc,
The Not So Obvious Scam Stores
Two kinds of online shopping scams fall into this category – brand impersonation & Chinese shopping scams. Let’s look at a concise breakdown of these scams.
Brand Impersonation Scams
This is a very common scam we see in online shopping. Scammers often pose as brands, offering fake clearance sale, discounts, etc. Earlier in August, the Bed Bath and Beyond Closing Sale Scam was the trend, then there was Pink Lily Sale, Cathkidston, etc, and a handful of others.
The scammers copy the website design, brand, logo, and even almost similar website domain of original brands. All these are social engineering tactics to gain the trust of their victims. When people see known brands offering discounts, they easily lower their guard and thus become prey to the scam.
Of course, they don’t receive their order or even get any feedback from the scam online store. Here are examples of brand impersonation scams – Fake LOWA Boots Store, Fake Nintendo Website, Fake Wilko Clearance Store,
Chinese Shopping Scams
This is the What I ordered vs. What I received version of scam. In this scenario, buyers receive their orders but it is far different from what was ordered. If it’s a clothing store, the materials are either of low quality, wrong sizes, threadbare, or different from what was ordered. If it’s not a clothing store, customers either receive a cheaper item or a miniature sized copy of what they ordered.
Interestingly, these Chinese scam online stores often use a fake UK address or a virtual UK company. This in no way means they’re located in the United Kingdom. It’s just a marketing tactics to make people trust the store. We all know the stereotype about China made products.
Examples – Loragal Clothing, Dokotoo, APRE Sunday Ltd, COSMOR Tumblr,
How To Know If It’s a Scam or Legit Online Store to Shop From
According to FTC, online shopping fraud is the most reported fraud category of 2023. Below are steps to take in order to stay safe and avoid this kind of scam;
Recently Registered Website
How old is the website? The domain age of a website tells a lot about a store’s legitimacy or transparency. Websites below 6 months old are often considered unsafe. You can find out a website’s age by checking on Who.is ( a free domain checker tool)
Website Lacks SSL Encryption
find out if the website is secured with SSL encryption. (https and padlock symbols). If the padlock symbol doesn’t appear near the website’s URL, then it means your personal and financial information is at risk at the store.
No Business Address/ Fake Business Address
Does The website provide return address? If Yes (Copy the address and paste on your browser. Google map would show if it is a real warehouse address or a residential address) If the address has also been used by other websites you’d see reviews in search results.
No Reviews Online
Are there customer reviews online? (It is advised that you sit it out if there are no customer reviews of the store. However if you’re not patient enough to wait you can send a mail to us to verify if the store is legit)
Shady or No Returns and Refund policy
If the policy isn’t available or if it isn’t clear, you should quit shopping.
Unsecure methods of Payment
When an online store’s payment methods lack the necessary encryption and security measures to protect customers’ sensitive financial information, it puts you – the shopper at risk of unauthorized transactions.
What To Do If You’re a Victim of an Online Store Scam
Contact Your bank To Cancel The Transaction and Get a Refund
The first thing you should do is contact your bank to inform them about the fraudulent purchase. Through the chargeback system, you can get your money back from the transaction if you file a dispute claim. You could also request for a credit card freeze. That way, your bank would block any future transactions on your credit card, ensuring that scammers are unable to exploit it.
Update Your Passwords and Enable Two Factor Authentication
The second step you should take is updating your passwords. This should be done if you’ve used the same password other websites or applications. You should also go an extra step of enabling two-factor authentication. This would keep you protected from data breech.
Meanwhile, you should beware of any fraudulent email from the store. Do not click on any suspicious link in the email, as it could be a phishing scam. Clicking on the link might install malware on your phone which could compromise your device’s security.
Report the Scam;
Report the scam to relevant authorities and organizations. This includes:
- Internet Crime Complaint Center (IC3): If you are in the United States, you can file a complaint with the IC3 at https://www.ic3.gov/.
- Your Local Consumer Protection Agency: Contact your local consumer protection agency or the equivalent regulatory body in your country.
- Better Business Bureau (BBB): File a complaint with the BBB if the online store is based in the United States.
