Online shopping fraud is on the rise, threatening consumers’ wallets and personal information as they navigate the digital marketplace.
At a Glance
- 82% of shoppers have been exposed to some type of fraud this year
- Criminals are using AI technology to create fake ads and steal personal information
- 44% of surveyed individuals purchased through online ads on social media, with 35% experiencing fraud
- Over half of respondents received fraudulent shipping notifications claiming to be from delivery services
- Experts recommend using credit cards for safer online shopping due to better fraud protection
The Growing Threat of Online Shopping Fraud
As online transactions become increasingly common, a growing number of shoppers are falling victim to various types of fraud, including package and identity theft. This trend is particularly concerning during high-spending periods like the holiday season. According to an AARP Fraud Watch Network study, a staggering 82% of shoppers have been exposed to some form of fraud this year alone.
Criminals are becoming more creative in their approaches, and many consumers are unaware of the different scams and red flags. For instance, 64% of respondents were unaware that legitimate online retailers wouldn’t ask for personal login information for customer support. This lack of awareness leaves shoppers vulnerable to sophisticated fraud tactics.
The Deceptive World of Online Ads
Social media platforms have become a breeding ground for fraudulent activities. The study revealed that 44% of surveyed individuals made purchases through online ads on social media, with a concerning 35% experiencing fraud from these transactions. Trust in online ads has significantly decreased, yet many still believe social media ads are trustworthy or remain unsure about their legitimacy.
“It’s best to shop with a trusted retailer and to go to their website or use the app to make purchases. Don’t click on links because you could be sent to a fake site where their goal is to steal payment information. Or worse, it could place credential-stealing malicious software on your device and use the information to take over accounts, including financial accounts.”
Kathy Stokes from AARP advises caution when dealing with emails, texts, and social media ads offering great deals. She recommends shopping directly through trusted retailer websites or apps to minimize the risk of falling victim to fraud.
Fraudulent Notifications and Gift Card Scams
Over half of the survey respondents reported receiving fraudulent notifications claiming to be from delivery services like USPS, FedEx, or UPS about shipment issues. Alarmingly, the incidence of such fraudulent notifications has nearly doubled from 2022 to 2023. Additionally, about 25% of adults have encountered gift cards with no balance, highlighting another area of concern for shoppers.
Protecting Yourself from Online Shopping Fraud
To combat these growing threats, consumers are urged to adopt protective measures. AARP suggests using credit cards for safer online shopping, as they offer better fraud protection compared to debit cards. Despite this advice, 70% of people still plan to use debit cards, which have longer resolution processes for fraud.
It’s crucial to be cautious when using peer-to-peer payment apps, as over 30% of shoppers plan to use these services, which often offer limited or no fraud protection. Always verify the authenticity of communications by contacting companies directly through official channels, and be wary of unsolicited messages or too-good-to-be-true offers.
Taking Action Against Fraud
If you become a victim of fraud, it’s important to act quickly. Report the incident to the relevant authorities, secure your accounts by changing passwords, and monitor your financial statements for any unauthorized activity. Resources like the FTC’s IdentityTheft.gov and the AARP Fraud Helpline can provide valuable guidance for scam victims.
By staying informed, exercising caution, and utilizing the right tools and resources, consumers can better protect themselves against the rising tide of online shopping fraud. Remember, vigilance is key in maintaining your financial security in the digital age.
