In boom year for fraud, 2019 online purchasing scams cost state consumers the most
The scam “industry” had a big year in 2019. Bad actors based around the world attempted to steal more than $10 billion from consumers using a variety of tactics. By the end of the year, upwards of $370 million worldwide was lost last year due to fraudulent activity.
Of all the traps consumers fell victim to in 2019, online purchases proved to be the most damaging. The Better Business Bureau Scam Tracker received 9,000 reports of individuals encountering e-commerce scams – the most of any scam type reported last year. Globally, more than $4.2 million was taken via phony online transactions, with 80% of those reported cases losing significant amounts of money.
Consumers in our region were no exception. According to BBB Scam Tracker, Washington state residents were duped out of $190,000 as result of 260 online purchasing scams employed last year. To put that dollar amount in perspective, the second- and third-most reported scam types – phishing and employment scams – combined to cost consumers less than $50,000 in roughly 250 incidents.
With online shopping expected to continue increasing throughout 2020, consumers can count on an even greater number of e-commerce scams infiltrating your online experience.
The Better Business Bureau Northwest + Pacific recommends the following tips for protecting yourself from any problematic online purchases:
Spot the signs of a bad site. The most effective e-commerce scams mimic the websites of famous retailers, so it’s especially important to verify the legitimacy of a site before making a purchase. Missing or incorrect contact information is one of the simplest ways to identify fraudulent online business. Researching a retailer at BBB.org before you shop also can help steer you away from any illegitimate operations.
Make sure you’re secure. Websites that operate securely include web addresses that start with “https://” on the page asking you to enter your payment information. Those pages also typically include a lock icon to let you know you’re protected. If you don’t see one or both of those items, think twice before buying.
While shopping online, plastic is preferable. Credit cards offer protections other forms of payment may not. Disputing charges you didn’t approve is easier with a credit card than it is with debit, prepaid or gift cards. When you can, pay with plastic for purchases made online.
More information on how to protect yourself from online scams are available at BBB.org.