Shopping has become more convenient and online marketplaces have seen an increase in popularity. Consumers are now able to shop anytime and anywhere, even from the comfort of their homes. However, the online marketplace has proved to be a double-edged sword as now consumers are more prone to fall victim to various scam tactics.
This article will shed light on the hidden dangers of online shopping scams, and practical steps that you can take to protect yourself to make smarter, safer decisions while shopping online. Don’t fall into the trap of deals that seem too good to be true, cause they might actually be too good to be true.
Types of E-commerce Scam Tactics
As the number of marketplaces increases, the tactics of scammers are evolving just as quickly. Identifying a scam is no longer a straightforward process, and if we are not careful enough, we may become an easy target for these perpetrators.
Let’s take a look at some of the common e-commerce scams hidden in the online marketplace today:
- Fake E-commerce Sites or Sellers on Marketplaces
Scammers can now set up fake websites with a few clicks of a button, and these websites are almost indistinguishable from a legitimate marketplace. Another example is the impersonation of sellers on popular marketplaces to lure customers with incredible deals. After the payment is made, the items are never delivered, and the scammer is nowhere to be found.
- Phishing Scams Through Fake Links or Emails
Another method that is commonly used is through phishing emails or text messages posing as popular brands. This tactic would direct victims to fake websites that capture login credentials and payment information.
- Too-Good-To-Be-True Deals
Unusually low prices on high-demand items are often bait used by scammers. These offers exploit the excitement of finding a bargain to bypass a shopper’s usual caution.
In order for scammers to retrieve your payment details, they will need a good bait to entice potential victims. These often come in the form of high-demand items with unusually low prices.
Why People Fall for Scams
Many online shopping scams work by taking advantage of people’s desire for a great deal. They leverage on the victim’s fear of missing out on a limited-time offer, to bring down their guard. Even the cautious shopper can fall victim to these sophisticated and realistic websites, some go to the extent of posting fake positive reviews to make it a challenge to differentiate between real and fake sellers.
Real-Life Examples of Scams in Singapore
The number of e-commerce scams reported in Singapore increased from 4,496 in the first half of 2023, to 7,250 in the same period of 2024. This resulted in a total amount of S$8.6m being lost to such scams. While we may assume that most victims of these e-commerce scams are senior individuals, the reality is in fact the opposite, with a majority of these victims being young adults and adults below the age of 50.
This statistic may be attributed to the overconfidence and complacency that individuals in this age group have towards online scams. A survey conducted by relevant authorities found that three out of five individuals in said age group, or 64.1%, were confident of their abilities to stay safe against scams.
However, the police find this to be worrying as this mindset of them being immune to scam tactics may lower their guard and increase the chances of being a victim. Many individuals may underestimate the fast-evolving and diverse nature of these scam tactics.
How to Spot an Online Shopping Scam
Not all hope is lost as there are measures that can be taken to protect yourself from being a scam victim. All it takes is a little more attention and you will be able to spot the intricacies that separate a legitimate website from a phony one.
- Unrealistic Discounts
While offering promotions and discounts is a norm to attract customers, a price that is significantly much lower than other reputable sites may be a red flag. Scammers tend to use exaggerated discounts to lure customers to provide their credit card or bank account information.
- Poor Website Design or Lack of Security
One obvious giveaway that the website is not legitimate is the poor website design or lack of security. Bad spelling, low-quality design, or an insecure connection (no “https”) could more often than not point out that the website is not trustworthy. Secure websites should display a padlock icon next to the URL.
- Lack of Reviews or Duplicate Reviews
Another sign that may point to a website or product not being legitimate is if it lacks reviews. Even a newly launched product will have a certain amount of reviews, as it is common practice for companies to pre-launch their products to a selected group of audiences to get their feedback and comments.
- Unusual Payment Methods
Secure and reliable online merchants will have proper payment gateways for customers to transact on. Scammers will avoid these payment methods as they often require more authentication and the transactions are more well-tracked. Instead, they will opt for payment methods such as wire transfers, gift cards, or cryptocurrencies, as these are harder to trace and reserve.
How to Protect Yourself from Online Shopping Scams
Even as scam tactics continue to evolve, there are multiple ways that we can protect ourselves from falling victim to scammers. Authorities are also constantly upgrading their technology to help citizens stay safe from these potential threats.
- Shop on Trusted Platforms
Stick to reputable e-commerce platforms that offer buyer protections. Sites like Amazon, Lazada, and Shopee have measures to protect buyers and secure transactions.
- Use Secure Payment Methods
Avoid direct bank transfers or alternative payment methods with minimal fraud protection. Credit cards and payment platforms with fraud protection, like PayPal, are safer options.
- Enable Security Features
Two-factor authentication (2FA) adds an extra layer of security to your online accounts, making it harder for scammers to gain access. Set up fraud alerts with your bank to receive notifications of suspicious transactions.
- Stay Updated on Scam Alert
Follow official resources, like the Singapore Police Force’s ScamAlert website, to stay informed about new scams and learn how to protect yourself against emerging tactics.
What to Do If You Fall Victim to an Online Scam
- Report the Incident
Report the scam to the Singapore Police Force and ScamShield. This helps authorities take action and may prevent others from falling victim.
- Contact Your Bank
Notify your bank immediately to freeze any affected accounts or reverse transactions if possible.
- Monitor Your Accounts
Keep an eye on your bank and credit card statements to spot any unusual activity. Consider changing passwords for your online accounts as an added precaution.
Conclusion
Online shopping scams are becoming increasingly sophisticated, but with the right knowledge and a cautious approach, you can avoid falling victim to them. Consider attending cyber security courses to equip yourself with the knowledge and skills that can help you better identify such threats.
Remember: if a deal seems too good to be true, it probably is. By staying vigilant, verifying sellers, and using secure payment methods, you can enjoy the convenience of online shopping without the risks. Don’t forget to share these tips with friends and family to spread awareness and keep our online community safer from scams.
