What you should know when shopping online this holiday season
AUSTIN, Texas - From brick-and-mortar stores to online boutiques, everyone is gearing up for the holidays.
"Scammers are also making preparations of their own to take advantage of the increase in purchasing behavior," said Heather Massey, VP of communications for BBB serving the Heart of Texas.
The Better Business Bureau is warning consumers to be careful when shopping online this holiday season.
According to the BBB, in recent years, online purchase scams have been the costliest. Already this year, $1.2 million has been reported lost from 1,400 reports of online purchase scams in Texas.
"We can see how losses and reports have already exceeded total counts per year since 2018," said Jason Meza, senior director of media relations & community engagement. "There are a few times in the year that coincided with increased risks for online purchase scams. One of the highest is December, stretching out over to the New Year."
According to the BBB, in today’s marketplace, it is much more likely that a scammer is part of an organized group rather than working as a lone wolf.
"They are mostly based overseas, and these groups operate in a similar fashion to legitimate companies with hierarchies, flowcharts, trainings and multiple people that can be enlisted to serve in various roles," said Devin Benavides, director of partnerships & community engagement. "They also have a very strong understanding of American purchasing habits, and they closely follow trends to maximize the chances of their schemes."
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Scammers may pose as companies - like Amazon - or pose as the seller of a brand.
Some of the most commonly counterfeited brands include Nike, North Face and Apple AirPods.
"During the holiday shopping season in 2021, multiple reports to BBB about a Fort Worth-based business calling itself ‘Beats by Dr. Dre’ raised concerns," said Benavides. "Consumers reported that the quality of the item was significantly less than they expected. The one difference - the company added ‘Dr.’ and the official brand name for it is simply ‘Beats by Dre.’"
To avoid adding any more stress to the holiday season, the BBB recommends using protected payment methods - ideally a credit card.
If PayPal is used, a buyer should not send money using the platform’s Friends and Family method. PayPal’s protection policies do not cover transactions for that method in the same way as a business transaction.
Consumers should also verify the website is legitimate. One way to test legitimacy is to check the age of the website domain. It should not have been registered recently if it is a well-known company.
If provided with an address or customer service phone number, do a reverse search on Google and see if the number or address is linked to the right company.
Consumers should also be wary of any ads on social media platforms.
"Not everything advertised on Facebook is legitimate, and scammers can easily create sponsored ads that are going to show up on your news feed," said Katie Galan, director of education & community engagement.
According to a 2021 FTC study, less than 5% of victims of fraud reported their experience to the BBB, implying that the number of those affected by these scams could be much higher.
To report a scam to the BBB, click here.
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