From The Better Business Bureau of Central Virginia
Scams related to online purchases, already on the rise in 2019, spiked further following the start of the COVID-19 pandemic, according to a new report by the Better Business Bureau (BBB). A staggering 80.5 percent of consumers who reported online purchase scams in 2020 lost money. Online purchase scams rank across the nation among the top three riskiest scams for 2020. Greatly increased online activities because of COVID has led to greatly increased scams and fraud.
With the coronavirus pandemic expected to continue for the foreseeable future, BBB launched a new study to better understand how online purchase scams happen, who is targeted, what’s the overall impact, and how can BBB help the public to better avoid being ripped off online.
“Online Purchase scams are getting more sophisticated and more destructive to consumers and businesses. We must all become better aware of how to keep from being scammed and what to do if it does happen,“ said Barry N. Moore, President and CEO of BBB serving Central Virginia.
The 2020 Online Purchase Scams Report examines findings from an August 2020 survey of 1,549 U.S. and Canadian consumers reporting online purchase scams to BBB Scam Tracker. The top reason people fell for this type of scam was a “great” sales price. Scammers offered high demand products at a significantly reduced dollar amount, which then increased the desire to purchase the item.
Following the coronavirus outbreak, the second biggest factor to search and then purchase items online was availability. Early in the pandemic, supplies such as hand sanitizer, toilet paper, cleaning products, and masks were in short supply. According to the survey, more than half (53 percent) of the respondents said they weren’t aware they were a target of a scam until they didn’t receive the product ordered.
Consumers who lost money to online purchase scams reported the following platforms as the place where they saw the product: Facebook, Google, a direct merchant website, Instagram, or pop up ads on social media when they were actively online shopping. According to survey respondents, out of the 57 percent who did not research the website or business via an independent source before making a purchase, more than four out of five lost money.
The report highlights those who are most at risk for online purchase scams. Individuals ages 35-44 were more susceptible and likely to be victimized, while younger consumers are more susceptible than older adults. However, older adults when scammed tend to lose more money than younger adults for online purchase scams. This falls in line with findings across all scam types. In addition, service members, military spouses, and veterans were more likely to fall victim than non-military consumers, and they reported losing significantly more money to online purchase scams.
“These critical findings can help guide our scam prevention outreach to those most vulnerable to these scam types,” said Melissa Lanning Trumpower, executive director of BBB Institute for Marketplace Trust, which produced the report.
Survey results reinforced that consumer education in relation to online shopping is a critical component of fighting being scammed. Those who were aware of online purchase scams prior to being targeted were less likely to lose money (77 percent) than those who were not aware (82 percent).
Read more on how to be safe when shopping online platforms and when looking for a job, there are tips to avoid an employment scam.
For tips on how to avoid online shopping scams, visit BBB.org/OnlinePurchaseScams.
Go to BBB.org/ScamTracker to report a scam, learn more about other risky scams on BBB.org/ScamTips and visit our scam news feed.
