CONSUMER ALERT: New York Department of State’s Division of Consumer Protection Provides Tips to Avoid Online Shopping Scams

The New York Department of State’s Division of Consumer Protection is providing consumers tips to avoid scams while shopping online this holiday season. In 2023, consumers spent $273.3 billion online during the holiday season nationwide. This year, the National Retail Foundation expects almost one third of consumers’ holiday shopping will be done online. At the same time, consumers reported $95.2 million in losses from online shopping scams to the Federal Trade Commission last October through December. When shopping for holiday gifts, consumers should follow important tips to avoid scammers online.

“The holidays are one of the busiest times of the year for both shoppers and scammers,” said Secretary of State Walter T. Mosley. “While online shopping is a convenient way to purchase gifts and find deals, scammers often use this time as an opportunity to take advantage of consumers and steal their information or their hard-earned money. I encourage all New Yorkers to read and follow our tips from the Division of Consumer Protection to help protect themselves from scams and ensure they have a safe and happy holiday.”

Tips to Avoid Online Shopping Scams:

1. Beware of fake websites: Scammers often create fake websites to imitate legitimate brands. Carefully review the seller and product before buying. Look out for these fake website red flags:
   • Domain name: If the domain name doesn’t match the official company name or website, it could be a scam site.
   • Check the contact page and website’s privacy policy: The absence of a legitimate (or any) mailing address, working phone number and privacy policy are all red flags for scam sites.
2. Be careful when shopping on social media: Scammers use social media to set-up fake stores to trick customers into paying for products that never arrive. They may create fake accounts and use recognizable brand names and logos to advertise fake clearance sales on social media feeds. Scammers use tactics to make their stores appear authentic and may offer products at unusually low prices. If an offer seems too good to be true, it usually is. Always search for reviews before purchasing. Don’t purchase a product directly from the social media site or a link you find on the site. Instead, open a new browser and make your purchase through the retailer’s website.
3. Watch out for third-party seller scams: Confirm the legitimacy of the seller if shopping in an online marketplace. If redirected from a trusted site to a third-party site, read the seller’s policies and reviews, look for any consumer comments and, most importantly, do a broad internet search on the seller before making your purchase. Warranties from trusted sites do not cover third party sellers they host, so you could be unprotected if you get a substandard product or no product at all when you order from an unknown third-party vendor.
4. Read product specifications and terms: Make sure you read product descriptions carefully, including the fine print. It’s important to understand what you’re purchasing and the terms of sale to ensure you are getting what you want.
5. Learn how to spot a fake review: Fake reviews are not always obvious, so look at reviews from a variety of different sources to better understand the product, brand or seller. Look out for these red flags:
   • One-sided reviews with no specific details: Real reviews often reflect customer experiences that are balanced, descriptive and subjective. Remember that not all fake reviews are positive.
   • Multiple reviews that look very similar and posted during the same timeframe: This is a sign that the reviewers are either copying information or were all written by the same person.
   • Bare user profiles: Be wary of new reviewers that don’t have much information on their profiles and only leave one-sided reviews. Research on hotel reviews found that legitimate reviewers were more likely to have profile pictures than fake reviewers.
6. Check for return policies:  Avoid sellers with vague, missing or exceedingly limited return or refund policies. Before making a purchase, make sure you know who pays shipping costs for returns and any time limits for making returns.

Tips to Use Safe Payment Methods Online:

1. Check the website’s encryption: Before entering your credit card information, make sure that the website’s address (URL) begins with “https” and that there is a closed lock on the website address bar or unbroken key symbol in the lower portion of your window. These indicators show that the site is secured with a digital certificate. This means that any information sent between your browser and the website is sent securely.
2. Don’t save your payment information on websites: Many websites allow you to save your credit or debit card information for future purchases. Always opt out, and instead enter your card number each time you make a purchase.
3. Pick your payment method wisely:
   • Credit cards generally offer some level of fraud protection to help consumers get their money back if you ever need to dispute a charge. If you realize you paid a scammer, immediately report the payment to your bank or credit card company. The earlier you report fraud, the more likely you will be able to access available services and get your money back.
   • Avoid using debit cards for online purchases. Debit cards do not offer the same level of protection against identity theft as credit cards.

About the New York State Division of Consumer Protection
Follow the New York Department of State on Facebook, X and Instagram and check in every Tuesday for more practical tips that educate and empower New York consumers on a variety of topics. Sign up to receive consumer alerts directly to your email or phone here.

The New York State Division of Consumer Protection provides voluntary mediation between a consumer and a business when a consumer has been unsuccessful at reaching a resolution on their own. The Consumer Assistance Helpline 1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding State Holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumerprotection. The Division can also be reached via X at @NYSConsumer or Facebook.