Online shopping fraud will increase in 2024
Second most reported type of fraud
It contributed to a loss of $12.5 billion.
But you may not have heard about the latest scam
Targeting families across America.
Today, we’re going to take a closer look at online shopping scams.
This is incognito mode.
[dramatic music]
[graphics clacking] [intense music]
The prevalence of fake websites increased by 790% in early 2025.
And that’s all thanks to AI.
It’s very easy to create a fake website
While it may seem like a perfectly legal place,
Maybe it’s a story you’re already shopping.
However, the site is completely illegal.
They are there to steal your money and information.
Scammers are now taking advantage of sold out signs
By setting up a fake website.
[Speaker 1] So there’s your Lawry’s, and there’s your Canton.
Scroll down here to see your AI-generated friends.
This guy’s t-shirt here at Canton Farm Equipment
And put on a cowboy hat
Apparently he also works at Lowery’s Equipment
Both are right there.
Scammers trick people into visiting fake websites
In several different ways.
One is to create a URL
It’s just one letter away from a legitimate business.
Not only are the URLs nearly identical;
But the website looks the same
to the site you are actually trying to access.
That way, you won’t even realize that you’re being scammed.
Another method is a technique called DNS spoofing.
Where to enter the actual URL,
However, you will be redirected to a fraudulent site.
Domain Name System or DNS
It’s basically an internet phone directory.
When you enter a website (for example, wired.com),
DNS translates Wired.com into an IP address.
In fact, this is how computers work
communicate with each other.
By destroying the DNS cache,
Scammers basically trick your browser
You will be directed to a fraudulent site
instead of the place you are actually trying to visit.
Visiting a fake website
You are on a whim, whatever the scam is.
They may try to trick you into ordering
What you can never get,
and steal your credit card information
They may steal your money or steal your data.
Really, whatever the scammers want to do
If it’s a fake website, they’ll do it.
Of course, this is just one type of scam you may come across.
Online shopping these days is a minefield.
So here are some other scams to watch out for.
[dramatic music] [graphics clacking]
AI is facilitating all kinds of new fraud.
One type of fraud that uses AI is to create a website that sells products
something that doesn’t actually exist
Or it’s completely different than it looks in the photo.
Fraud techniques
I mean, someone’s going to start a website.
steal photos from other sites
Then pretend to be selling those products.
However, that made it much easier to get caught.
For example, if you are looking for a new sofa.
You’re probably looking at various websites
And when I look at various photos,
If you visit a fraudulent site,
you may recognize those images
This is a quote from another website.
And they may ring your alarm bells.
AI allows scammers to create entirely new images
A completely new product,
Therefore, you may end up purchasing a product that does not actually exist.
and receive nothing,
Or you’ll get something that doesn’t look like it at all
What you see in the photo.
Well, I bought this cat bed.
I was thinking of buying a regular cat bed.
Why would I be such a fool?
This is what I received instead.
It’s not a joke. It’s the size of a cat bed.
[intense music] [graphics rattling]
It’s impossible to break up these days
From shopping to social media.
the algorithm knows you well
This means that they will only recommend what you want to buy.
But like anything, there are scammers too.
One of the most common social media scams is fake coupons
they offer you crazy deals
about what you were looking for,
For example, great sunglasses and strollers are 80% off.
Then, when you go to buy what you are looking for,
can never really understand,
Or send something completely different
than what I ordered.
One of the more advanced versions of this scam
This is where you sign up for coupon subscriptions.
Make them pay the coupon membership fee
It’s either worthless or never arrives.
Another version of coupon fraud
It’s a disgruntled employee scam.
You may have seen this on TikTok or Instagram Reels
Where someone claims to be a disgruntled employee
People who have been laid off or are about to quit;
So they are making concessions.
Their super secret employee discount code.
When you try to buy what you are trying to buy,
The code works.
However, when I add an item to my cart,
You may notice shipping charges
rises disproportionately.
But you’re getting a lot of benefits.
So you probably won’t care.
We apologize for the inconvenience, but after placing your order,
neither one gets anything
Or whatever you bought wasn’t what you expected.
It’s really easy to get carried away with impulse purchases
on social media.
Some scams take advantage of this
By holding a fake going-out-of-business sale,
I think everything in the store is 30% or 50% off.
And you go and buy, for example, nice luxury towels.
But when I got it, it was just a cheap towel.
I could have bought it anywhere for $5.
When I went back and looked at the page,
The business is still going out of business
Over and over again.
[Speaker 1] Is joanbags.com legal?
AI-generated owner photo, brand new domain,
False claims, deep discounts, stolen images,
There are no actual customer reviews, but
That seems like a major red flag.
[intense music] [graphics clacking]
One of the scams you’ve probably already experienced
It’s a fake shipping scam
Where to receive fake text messages
I receive a message from UPS or FedEx that my package is delayed
Or you need more information
In order to safely deliver your luggage.
The reason these scams work is because
Everyone always buys a lot online,
People seem to expect to receive alerts about packages
It may be on its way.
However, when I click on the link,
You may be asked to enter your information
that they’re just going to steal
Or it could install malware on your device.
[lively music] [graphics clacking]
This scam is primarily notable for being extremely fraudulent.
These scams can target you in all sorts of ways.
From emails to social media posts and online ads.
Crowdfunding platforms and even cold calls.
These scams often fool people
By creating a sense of urgency.
For example, let’s say someone asks you to donate.
To an animal shelter that is about to close
And if you don’t donate,
All animals will be euthanized.
it’s a really powerful method
This is to get someone to give you cash quickly.
These types of scams spike during the holiday season
When people are looking to donate for a good cause.
Particularly awful versions of these
It occurs after almost every natural disaster.
Charity will appear out of nowhere
and trick you into thinking you’re giving to people
Those who are really in trouble at that time,
But they’re just taking your money.
and they will soon disappear
As soon as those events disappear from the news.
An unexpected scam is the online sale of pets.
This is driven by scarcity
A really very desirable breed, a really rare breed,
However, the Better Business Bureau estimates that
80% of sponsored pet sales ads may be fake.
Better Business Bureau announces online puppy scams
vulnerable to damage
Because it appealed to people’s emotions.
[intense music] [graphics clacking]
One of the latest online scams
It starts with not being online at all.
called brushing,
This scam involves someone shipping you a package
that you did not order,
And there’s not much information.
The package I received appears to be genuine.
Your name and address are written on the label.
However, there is no return address.
Looking at the package,
Who sent it and where did it come from?
I think you can probably find the QR code.
This needs to be scanned.
This will take you to the website
It looks completely legal, but it’s not.
A new unique scam using mysterious packaging
show up at your doorstep
And an even more mysterious QR code.
[Reporter] We will then mail or ship the item to you
To make it appear as if an actual transaction has taken place,
and write a fake review
Pretend to be the person receiving the item.
When you enter your personal information,
Then it’s just like any other scam.
Now they have your data,
And they can use it to target you for other scams.
sell data,
or do anything else
You may become a target for future scams and scams.
Therefore, if you receive a package that you did not expect,
Since only the QR code is listed,
Maybe just count it as a win
And keep what you get for free.
and do not enter any information
Visit untrusted websites.
So what can you do to avoid being scammed?
First, make sure you shop at trusted retailers.
always pay close attention
Go to the URL of the site you’re visiting.
look for extra characters
Or whatever looks bad.
While adding items to your cart,
You may want to take a step back
Open the site in another browser or another device
and go through the process again
Just to make sure everything is legal.
Always be skeptical of deals that seem too good to be true.
If there is a product that is much cheaper than usual,
or offer a free sale
If you do so, you may be scammed.
Be suspicious of anything sent to you for free.
When shopping from small retailers
Found on social media,
do independent research
And make sure the site is legit.
In other words, if you look at reviews online,
Something that is not listed on the website itself.
Look out for signs
That the store is trying to scam you
Pressure tactics such as fake going-out-of-business sales
or other exigent circumstances.
for your purchasing experience.
Ignore delivery text links.
You must always track your package
Use search tools for trusted carriers.
When donating to charity, be sure to do your research.
Ensure organizational transparency
how they spend their money,
and they will give you a way to contact them.
If they are using pressure tactics to donate right away;
That’s a big red flag.
You may also use third party websites such as Charity Navigator.
It will speak to the legitimacy of the organization.
And whether or not you should donate to them.
If you are unsure of the retailer,
You can check it anytime
On the Better Business Bureau website:
Check for complaints about those businesses.
[upbeat music]
Online shopping scams are not new;
But they’re getting smarter, faster, and harder to spot.
So, be sure to take a breath before clicking “buy”.
Make sure everything is checked out.
This is in incognito mode. Please stay safe.
[logo warbling and chiming]
