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Holiday Shopping Warning: BBB's New Study Shows Increase In Online Purchase Scams

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BBB

There’s no doubt there's been an increase in online shopping as the country continues to deal with the pandemic.  And as we head into the holiday shopping season, new research from the Better Business Bureau shows consumers need to be careful. 

The report shows social media is helping fuel the increase in online shopping scams.

“We’re seeing more websites pop-up offering what looks like great deals and in truth, they’re really just there to rip you off.”

Troy Baker is the communications manager with the Better Business Bureau Serving Western Michigan.  He says the BBB’s new report and research on “2020’s Online Purchase Scams” warns that social media is helping fuel an increase in scams.

“One of the biggest problems we see and the study really brought it out, is among the people who weren’t specifically looking for a product, they found the website that scammed them on social media, I see it. You scroll through Facebook and you see the little advertisements for things, just because it’s an advertisement, doesn’t mean it’s legitimate. Know who you’re buying from.”

Facebook and Instagram were two of the most common places where people reported finding the website that scammed them.  And the number of those scams has increased dramatically.

“In 2015, when we looked at those that lost money, just 13% were online purchase scams.  Compare that with this year so far, and we’re not done yet, of all reports where people lost money, 64% of those had to do with an online purchase.”

The BBB says 73-percent of victims in this scam say they never received the product they ordered. And West Michigan has recently seen some high-profile examples of this. Baker says the owner of a business in Muskegon is under investigation by the Michigan Attorney General and is facing federal wire fraud charges for a website launched at the start of COVID.  The website claimed to sell those N95 masks. Customers allege they paid for masks which were never delivered.

Baker cautions consumers to avoid deals that seem too good to be true, do your research before buying and pay with a credit card which often offers protection for consumers.  As always, you can report suspected scams to their website at bbb.org/scamtracker .

Jennifer is an award winning broadcast news journalist with more than two decades of professional television news experience including the nation's fifth largest news market. She's worked as both news reporter and news anchor for television and radio in markets from Grand Rapids and Kalamazoo all the way to San Francisco, California.