Social media advertising is an effective way for small businesses to get the word out about their products. Unfortunately, the same goes for scams. BBB Scam Tracker has received more than 50 online purchase scam reports from consumers across Iowa, Kansas, Missouri, Nebraska and South Dakota since November 1, many of which were perpetrated on social media. The 2022 BBB Online Scams Report found that online purchase scams were the most common cons reported to Scam Tracker and the category with the most victims.
How the scam works
Products that claim to support charity: As you scroll through your Facebook or Instagram feed, you see an ad from a small business selling adorable jewelry, t-shirts, or other merchandise. The best part? Some of the proceeds from the sale will go to a charity that helps rescue animals, foster children, or support another worthy cause. Some consumers even report getting direct messages from sellers promoting the products and asking them to spread the word to friends and family.
You make your purchase. But when your merchandise never gets delivered, the doubts start to build. When you contact the company about your purchase, they are suddenly unreachable or reply with an autoresponder. In reality, the product never existed. It was all a ploy to get your money. See more on charity scams.
Free trial offers: Many of these misleading advertisements tout celebrity endorsements and promise a trial of the hottest new skincare or nutritional supplement for a minimal investment of shipping fees. Consumers report that once they agree to the terms and conditions of these offers, they realize they have agreed to multiple monthly shipments for products over $70-$100 each. See our study on free trial offers.
Before you sign up for these “limited time offers,” research the company online, see if there are any other consumer complaints, and read the terms and conditions you agree to carefully. That is a red flag if you can’t find any terms and conditions. Watch out for pre-checked boxes and ensure you know who and where the company you are purchasing from.
Counterfeit merchandise: Name-brand goods are prime targets for unauthorized duplication, from sporting goods to designer apparel and handbags. If you purchase any of these products, you may risk not only receiving a poor quality product, but it may not meet environmental and safety regulations either. See more about counterfeit product scams.
Look out for red flags. This includes items priced significantly lower than other retailers are charging, spelling and grammatical errors in the advertisements, and poor-quality images. These are all signs that the advertisement may be for a counterfeit product.
Engaging ads and poor customer service: This category covers a broad spectrum of complaints that BBB receives, from ads for beauty products to trendy clothing to kids’ toys. The advertisements look great, and the products are often inexpensive. This means that consumers purchase without researching the website or the company behind it. However, weeks pass, and the products never arrive. When the buyers reach out to customer service, they get a vague answer or don’t hear back.
Before buying, do a quick online search. Google the website name with the words “complaints,” “reviews,” and “scam” to see what other customers are saying. Check the “About Us” or “Contact Us” information on the company’s website to see if they contain actual contact details for the business. If the only way to contact the company is through a form, this is a red flag.
Apps of unknown origin: While scrolling through your feed, you may feel compelled to download the latest “free” app. Beware! By downloading this app, not only are you opening up your device to these unknown entities, but you could be signing up for recurring subscription fees. Victims report being charged fees as high as $99 every seven days.
Before you enter your username and password, read the reviews. Also, read the app’s description carefully and look for spelling and grammatical errors. Check that the developer’s website is working and read the terms and conditions carefully ($99 every 7 days adds up quickly).
How to protect yourself from social media scams
- Do your research. Before making a purchase, quickly search for the business in question. Do they have valid contact information? Don’t be fooled by professional photography or consumer reviews on their website. These can be lifted from other sites. Check BBB Scam Tracker to see if others have been duped.
- Search for previous complaints. Do a Google search of the business name followed by “complaints,” “reviews,” or “scam” and see what pops up. If you find this business has cheated other people, steer clear.
- Use good judgment. Many con artists play on consumers’ desire to help those in need. Remember this and use your head, not just your heart, when supporting charitable causes. Go to Give.org to research organizations before giving.
For more information
For more ways to protect yourself from social media shopping scams, see BBB’s tips for smart shopping online. You can also find more general tips at 10 Steps to avoid scams.
About BBB Midwest Plains
Better Business Bureau of the Midwest Plains is a 501(c)(6) not-for-profit organization serving more than 300 counties across Iowa, Kansas, Missouri, Nebraska and South Dakota. BBB sets and upholds high standards for fair and honest business behavior. Its services to consumers are free. BBB provides objective advice through its directory of more than 5.3 million companies and 11,000 charity reviews. BBB offers dispute resolution services, alerts and educational information on topics affecting marketplace trust. Visit BBB.org for more information.