With more people turning to online shopping, it was only a matter of time before online shopping scams started to become a thing.
The Internet can be a great resource, but it does come with dangers. Sadly, not all people online have good intentions, which is why you need to pay attention to too good to be true online offers.
In today’s article, we will be focusing all about:
- What are online shopping scams?
- How to avoid scams when shopping online?
- What to do if you get scammed online?
- And how can Duty Refunds help you?
Without further ado, let us start this show.
What is a scam?
A scam is a term used to describe any fraudulent business or a dishonest scheme designed to take money or goods from unsuspecting shoppers.
Way back in the analogue era, most scams were conducted in person by scammers in public places. However, as the Internet has become another part of our day-to-day life, scams have also evolved. The scammer uses the Internet as their worldwide-web playground for cons.
But what are some of the more common online scams?
Types of scams
As the Internet has proven to be a fruitful breeding ground for scams, different methods to con people have emerged. Here are some of the most common ones, besides fake online stores.
Phishing
One of the most well-known online scams is phishing. Usually, the scammer masquerades as a legitimate organisation (usually a bank) or a trustworthy person. “Disguised”, they send an email that asks the receiver to send sensitive, personal information (e.g. payment provider or bank account numbers). Once they receive the data, they use it to commit illicit activities like credit card fraud, identity theft, stealing money and electronic currency, etc.
Advance fee scams
Advance-fee scams are one of the Internet’s most infamous types of scams. The scammer pretends to know an uber-wealthy aristocrat that is currently imprisoned. They then ask the victim for international funds transfer help so they obtain the aristocrat’s freedom. The mark is told that they would be repaid afterwards, which never happens.
Now, let’s say you come across an exciting auction on eBay. Maybe, some excellent limited edition Jordan trainers or tickets to your favourite band. So you go on and bid. And then it disappears. Sadly, online auction sites are rampant with auction fraud, so you have to be alert to fake trader profiles.
However, there are plenty of shopping cons out there as well. The most common form of it is fake online stores that offer brand-new designer clothing and high-tech gadgets at an unbelievably low price. They might look like a legitimate store at first, but what tips them off is the method of payment.
See, the scammer usually asks you to pay upfront by means of a money order, a pre-loaded money card, a wire transfer, etc. When you spend like this, you will most likely never receive your purchase or even get a refund.
Some phishing scams also involve sending external links that are supposed to lead you to a great deal on a pretty exciting good.
Many people like to give their friends and loved one’s gift cards during the holidays. Unfortunately, scammers have caught on to that fact, so they offer fake gift cards at promotional prices.
Coupon websites
Along the same line, many shoppers on a budget scour the Internet for coupon websites. Scammers make fake coupon codes or offer a free coupon in exchange for doing a survey, where you then need to leave personal data. More insidious is that some scammers use this opportunity to install malware on your computer, laptop, or other personal devices.
One of the latest versions of online shopping scams involves social media platforms. Nowadays, you can use the platforms for faux online stores. They are usually open for a short period and sell branded clothing or jewellery of questionable origin. Once they make several sales, the stores disappear from the face of the world wide web.
A scammer can also use social media for advertising their fake website. They can even make a fake ad or two seem like a legit business. So be wary of any offer online that looks too good to be true.
How to avoid scams when shopping online?
Buying online from the EU after Brexit is already complicated enough for online shoppers to deal with. But add to that fake online shopping websites selling fake branded clothing, and you get another ballpark.
Here are some warning signs and how to prevent online shopping scams.
Shop with a trusted site and learn how to recognise a fake website
When shopping online, you must buy from a genuine retailer site or company. Unfortunately, differentiating real from fake retailer websites can get tricky. Many faux e-stores mimic genuine online retail stores, as they use possibly stolen logos, slogans, and URLs. The same rings true with the social media-based store model.
There are some tell-tale signs, though. For instance, the design of the retail website is shoddy, and the English copy is sloppy. This might not seem a big deal, but legitimate online sellers put a lot of effort into their online presence. So, if there are too many mistakes, you might be dealing with a fake website.
But usually, the biggest tip-off is that what their offer is too good to be true. Plenty of websites offer luxury items at very low prices. But say you find a cheap deal for a pair of really nice designer pants, and it also comes with free overnight shipping from abroad. It might seem nice, but in this post-Brexit Britain, you can tell that something might be off.
If you come across one, please check other similar websites online for comparison. There are plenty of trusted online sellers out there that are transparent and care about your shopping experience.
Check new retail websites
To piggyback off of the former point, it is crucial to check the validity of a website. One online search can show thousands of hits on a search engine page. Everyone can make a website nowadays, so you need to be extra vigilant.
In addition to what we’ve previously mentioned, do check for the following signs:
- Have you ever heard of the brand in question?
- How old is the brand’s website? Does it look brand new?
- Do they offer suspiciously very low prices for luxury items?
- Is there a padlock symbol in the address bar of your browser? The lack of a padlock means the website is not encrypted, so your data will not be protected. It also means it doesn’t offer a secure payment service.
- Can you find any contact details on the website? Though this can be faked, the lack of an email address, a phone number or a social media page should be cause for caution.
- Is there any information about the brand, like an about us page? Is there a privacy, refund or returns policy? Sparse information could indicate a fraudulent website, so get away from it.
Don’t use the same password for every account
There is a reason why IT professionals insist on using different passwords for different accounts.
If scammer figures out one password for a web address, they can use that password to access all of your accounts and information. By having a different password, you limit this risk.
Fortunately, if you have a hard time remembering your password, you can always reset them.
Consider using a credit card instead of a debit card
Compared to debit cards, a credit card transaction provides a secure payment service when online shopping. They use EMV Chips technology, making it harder for scammers to access your information.
Also, they offer consumers better fraud protection than debit cards, as consumers are protected under Section 75 of the Consumer Credit Act. Credit cards are not connected directly to your online banking account and offer liability for fraudulent charges.
Check out as a guest when possible when making online payments
Many online sellers give you two options for checkout:
- Sign up for an account and then checkout or
- Check out as a guest.
When you create an account, you give the website access to your personal and bank information. So, your information can be at risk if a data breach happens. You limit this risk when you check out as a guest, as the online retailer doesn’t save your data.
Use fraud-detecting technology with your checking account
If you can, consider using a credit monitoring and fraud detecting service when making online purchases. Some checking accounts have tools that can help you protect yourself, like identity theft monitoring, or they send alert changes to your credit report. You might get charged for these tools, but knowing your data is safe is worth it.
What to do if you get scammed?
However, sometimes you may fall victim to an online scam, despite your best efforts. If that does happen, fortunately, there is something you can do to protect yourself from further risks.
If you at any point feel threatened, do not hesitate to contact the police by calling 101. This especially rings true if the scammer tries to contact you through various means. Do not engage with the scammer further, but keep a detailed record of what has happened. That way, you can report it to the authorities.
Sometimes scammers can pretend to be a representative from your internet provider and ask to access your computer. If that happens, you should immediately reset all of your passwords and update your anti-virus software.
Make sure to contact your bank and inform them that your financial information has been stolen. Ask an IT professional to check your computer, if you can.
If you believe that your account got hacked, do contact the National Cyber Security Centre so that they can advise you on how to recover your account.
You should also contact your bank if you suspect your online account details or PIN have been stolen. Keep an eye on bank statements and look for anything suspicious. Check for unusual transactions and applications for credit you don’t recognise.
If you’ve lost money from your account, there might be a chance to get it back. For example, you can request a chargeback for suspicious charges or items that never arrived.
Of course, you can always warn people on social media platforms about a dodgy online store, but the scammers can always disappear without a trace.
Hence it is vital to warn the authorities about the scammers, so the criminals can be held responsible.
How do I report an online shopping scam?
According to the official website of the National Association of Citizens Advice Bureaux, there are several ways you can report a scam in the UK.
Once you’ve protected yourself from other risks, gather all the details of the scam. This is important, as you can use the evidence to report the con to Citizens Advice or other organisations. As you gather all the information about the scam, remember to include:
- Who you’ve been in contact with?
- Write down names, numbers, and addresses if you have them.
- The reason why you’re suspicious.
- Explain why you believe you’re dealing with an online shop or a social media scam.
- What information have you shared?
- Did you share passwords, PINs, bank detail, or others?
- Did you pay for anything, and how?
- Did you pay by credit card, debit card, send money, or use an electronic funds transfer? Did you use other transaction methods?
If the scammer lives near you or you’ve transferred the money to them in the last 24 hours, immediately contact the police by calling 101. If you feel threatened or unsafe, call 999.
They then send the information to the Trading Standards, which investigates the alleged scams. Based on the data, they decide on whether or not they will investigate further and take legal action against the scammers. So make sure you leave a detailed complaint.
What else can you do?
Consider also reporting the scam to other organisations. Doing so increases the chance of stopping the scammers. You can do this by documenting all types of scams to Action Fraud, the UK’s national reporting centre for fraud.
For postal scams, you need to contact Royal Mail. You must send the suspicious package to Freepost Scam Mail and complete a scam mail report.
Whether you fell victim to a phishing scam or bought something on a bogus website, you can report an online scam to Citizens Advice through their Scams Action Service. And yes, this includes online shopping scams as well.
You can also report scams to Action Fraud if you live in Wales or England. If you live in Scotland, contact the Police Scotland.
How can I reclaim customs charges?
One of the most common scams online is when someone is impersonating a government service.
For example, the HM Revenue and Customs never sends an email, text message, app message, or a call where they inform you about a penalty or ask for your personal and payment information.
If you receive something that demands immediate payment, please contact the HMRC via email or phone or write them a letter. You can find the contact information on their official website.
Usually, if you order something outside the UK, the courier service will handle the customs charges on your behalf and then send you a receipt asking for reimbursement.
However, if you were a victim of someone pretending to be the HMRC, where you paid them imaginary customs charges, then you will have to report the fraud to the Action Fraud website and ask them if you can recover money.
If you received faulty items as a part of your scam, you are protected by consumer rights when returning the goods.
If you return goods to the EU retailers, you can reclaim customs charges.
Reclaim import duty and VAT with Duty Refunds
Instead of dealing with the extra stress of going through this process alone, allow us, Duty Refunds, to help.
Our company helps people get a refund on import duty and VAT as soon as possible. And you don’t even have to lift a finger. In fact, it’s all done online!
All you need to do is send us your tracking or waybill number of the order, and our team of experts will deal with the mountain of paperwork for you.
Once your claim is approved in three to six weeks, we will ask you in which bank account you would like to receive your money back.
The only thing we ask is a 15% commission fee from the total amount of your refund for our services. However, we charge the fee only after we win the case for you. No win, no fee policy!
Fill out our user-friendly online claim form today and take back your power today!
Final thoughts
Falling for online scams might seem embarrassing, but it shouldn’t! Plenty of people fall victim to cons on the web and social media, as we humans can’t be hypervigilant all the time. It’s exhausting to be suspicious of everything.
As you can take away from this article, there are various types of scams and plenty of ways to protect yourself and your loved ones.
If you fall victim to a con, you might feel powerless, but there are ways to take back some agency in your life.
Rest assured, if you return goods to the EU retailer, you can also count on us to help you get your hard-earned money back! And the first step in the process of reclaiming import duties is to fill out our online form!