FBI Online Shopping Warning: How to Avoid Scams on Cyber Monday

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The agency has issued a warning to consumers about online scams as the holiday shopping season officially kicked off. Learn which sites to watch out for, how to protect yourself, and more.

Black Friday officially marked the start of the holiday shopping season, but with deals now extending beyond physical stores and moving online earlier each year, it’s crucial for consumers to stay vigilant for scams as Cyber Monday approaches.

“Every year, thousands of people become victims of holiday scams. Scammers can rob you of hard-earned money, personal information, and, at the very least, a festive mood,” the FBI warned on its website.

Find out more about the FBI’s recommendations on how to protect yourself while shopping online for holiday deals.

Different Types of Scams

The FBI issued a warning about four common types of online scams:

1. Non-delivery scams, where consumers pay for items but never receive them.
2. Non-payment scams, where goods are shipped but the seller never receives payment.
3. Auction fraud, where products are misrepresented on auction sites.
4. Gift card fraud, where sellers ask consumers to pay using pre-paid gift cards.

Non-payment and non-delivery scams cost consumers over $309 million in 2023, while credit card fraud resulted in an additional $173 million in losses, according to the FBI’s Internet Crime Complaint Center (IC3). The FBI noted that the IC3 receives a surge of complaints in the early months of each year, indicating a strong correlation with scams that occur during the previous holiday shopping season.

How to Spot Fraudulent Websites

The FBI warned consumers on Nov. 29 via a post on X, saying, “Don’t let #holiday excitement cloud your judgment! Always verify the legitimacy of online retailers and be cautious with unsolicited offers.”

To help shoppers stay safe, the agency provided an unofficial safety checklist on how to verify the reliability of websites before making a purchase:

1. Check the URL: Always confirm that the website’s URL is legitimate and secure before making a purchase. Look for the secure connection padlock symbol and “https” at the beginning of the web address. If these are absent or the URL seems suspicious, move on.
2. Research New Websites: Avoid buying from a site for the first time without doing some research. Check online reviews, but remember that reviews can be faked. Don’t rely on the first review you see—look for patterns and consistent feedback.
3. Use Caution on Auction Sites: Be wary of sellers with mostly unfavorable feedback ratings or no ratings at all. Look for sellers with many completed transactions and positive reviews, indicating their legitimacy.
4. Avoid Suspicious Sellers: Don’t purchase from sellers who claim to be authorized dealers or factory representatives of popular items in countries where such deals are unlikely. These are often scams, where the seller takes orders but rarely ships goods, and when they do, the items are usually counterfeit.
5. Be Careful with Sellers Who Claim to Be Overseas: If a seller acts as though they are based in the U.S. but then claims they are out of the country due to a business trip, family emergency, or other reasons, this is a common scam. Move on and find a more trustworthy seller.
6. Beware of Unusual Shipping Arrangements: Don’t buy from sellers offering unusual shipping arrangements or promising to bypass customs checks or fees. Also, avoid sellers who request direct money transfers. Always use a credit card for added protection and verification.

What to Do If You Suspect You’ve Been Scammed

If you believe you’ve fallen victim to an online scam, it’s crucial to act quickly to minimize the damage and protect yourself. Provided by ESET, here’s a step-by-step guide on what to do:

1. Report the scam immediately to authorities, such as the FTC in the US or Action Fraud in the UK.
2. Notify your bank and, if necessary, freeze your cards or request replacements.
3. Cease communication with the scammer without explaining why.
4. Change any compromised passwords to secure your accounts.
5. Freeze your credit to prevent scammers from opening new accounts in your name. Contact the three major credit bureaus—Experian, TransUnion, and Equifax—to initiate this process.
6. Collect evidence of the scam, as it may be needed for investigation or claims.