What is a purchase scam?
A purchase scam is where scammers advertise non-existent or fake items at discounted prices to attract buyers. They’ll trick you to believe the items are real by creating fake websites, fake reviews, or advertising on social media marketplaces. In some cases, they’ll even pay for ads to display on social media to lure you in.
Look out for these red flags
If you’re buying online, especially through a seller you’ve never used before, you should be cautious and take your time to make sure it’s not a scam. Here are some common red flags to look for and top tips to help:
Is the price too good to be true?
Scammers will advertise at attractive, heavily discounted prices to convince you to purchase a fake or non-existent item. If something is in demand or trusted retailers have low stocks, it’s likely to be a scam if you see it advertised for a lower price from a seller you don’t know.
Are you being asked to pay in an unusual way?
Paying for goods using a bank or wire transfer, a money order or cryptocurrency has a higher risk, especially as it might not be possible to get your money back. Always try to use your debit or credit card to help protect your money, should something go wrong.
Are you being pressured by the seller?
If the seller is trying to rush you, question why. Scammers purposely try to rush people so that they act quickly, without having time to think. Take your time and make sure you’re buying something genuine. If you’re buying something expensive, especially from social media, it’s best to try and view the item in person.
Does the website look genuine?
The web address should begin with https://. The 's' stands for secure; however, this only indicates that the link between you and the website owner is secure, not that the site itself is authentic. It’s also important to spend time exploring the site. Check for information about the retailer, such as pages on their returns policy or contact information. If none exist or it doesn’t look right, it could be a clone or a fake website.
Have you checked the reviews?
Always check trusted review sites rather than relying on the store’s own reviews. They could still be fake, but it helps to do a web search for the seller’s name plus ‘scam’ or ‘reviews’. Check the quality of the reviews and look for pictures and videos. You can also check the reviewer’s profile to see whether they’ve left reviews on other places or when their profile was created.
What else can you do?
Sign up to our free fraud webinar where we cover the latest fraud threats and tips on how to protect yourself from fraud.
Look through our security centre, which has lots of resources to help you and your employees become fraud aware.
Review your Bankline security settings to make sure they’re effective and work for your business. Our Bankline security webinar covers this in more detail.
Final thoughts
The festive season can be a challenging time for businesses, with staff on leave, end of year targets, and holiday sales. You should always take the time to research before making a purchase.
We hope you found this useful. Please share this information with colleagues. The more people who know what to look out for, the better. Together we’ll beat the fraudsters.
