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Journalism of Courage
The holiday season brings with it massive discounts and enticing deals from various online shopping platforms. However, it also provides scammers the perfect opportunity to target unsuspecting shoppers. In this week’s edition of The Safe Side, we look at the most common e-commerce-related cybercrimes of 2024 and shares some useful tips to help you stay safe from shopping frauds.
For Netra (name changed), Diwali shopping on Instagram became a nightmare. While one store delivered the wrong item and refused a refund, another took money but never delivered the package, and eventually blocked her. Both businesses avoided formal communication channels, relying only on Instagram direct messages.
Shivangi (name changed) faced a similar ordeal after paying in advance for a phone cover she found cute. Instead, she received a cheap bottle of face wash, and that too after a month’s wait. Priyanka (name changed) has been waiting two months for her order with no response to her complaint. Both admit they acted impulsively, overlooking apparent ‘red flags.’
Ishaan (name changed) ordered shoes for Rs 2,000 but received a substandard product. When he tried to raise the issue, the seller blocked him. Such scams, including fake websites resembling genuine e-commerce platforms, are becoming alarmingly common.
With internet users in India projected to reach 900 million by 2025, and online shoppers growing from 250 million in 2023 to an estimated 425 million by 2027, scammers have a massive pool of potential victims.
“When high-discount sales are in full swing, scammers create fake websites on similar-looking domains such as Amazon or Flipkart and use better search engine optimisation (SEO) techniques to rank their websites on top. These scammers also run Google advertisement campaigns for fake sales, showcasing products at unbelievably cheap prices. Users easily trust these websites as they appear authentic and often rank high on search results,” said Arya Tyagi, cyber security researcher and founder of Webhack Solutions.
Tyagi elaborated that there are three major types of online shopping scams:
Fake advertisements on genuine platforms: Scammers run ads on legitimate e-commerce platforms, luring people into buying from their fake websites at cheaper rates.
Discount traps with additional offers: Scammers offer products at an initial 20 per cent discount and then introduce additional deals, such as “Add XYZ product to get an extra 50 per cent off,” enticing shoppers to spend more and lose a larger amount of money.
Fake fashion website investment schemes: In this recent scam, scammers sell products at discounted rates under the guise of fashion websites. For instance, beauty products worth Rs 20,000 might be offered at Rs 15,000. However, there’s a catch as buyers are told the products will only be delivered after 30 days. To make it more convincing, scammers promise a daily monetary return as an investment. Ultimately, the buyer receives neither the products nor the promised money.
Holiday sales provide fertile ground for scammers to exploit unsuspecting buyers. The combination of increased online activity and festive urgency makes consumers more vulnerable to fraudulent schemes.
Several factors make holiday sales particularly attractive to scammers:
Increased online traffic: Holiday discounts and promotions lead to a surge in online shopping activity. This spike in traffic increases the likelihood of users clicking on malicious links or fake websites, often without realising it.
Less cautious buyers: The festive rush creates a sense of urgency, causing buyers to act impulsively and neglect basic precautions, making them easy prey for scammers.
Inexperienced online shoppers: The holiday season often attracts traditional offline shoppers who, encouraged by family or friends, venture into online shopping. Their lack of familiarity with online platforms and common fraud tactics makes them particularly vulnerable.
To protect yourself from online scams, shoppers should remain vigilant and watch for these warning signs:
No Cash on Delivery (CoD) option: Legitimate platforms usually offer CoD. If a website insists on unconventional payment methods or avoids trusted gateways like net banking or UPI, it may be suspicious.
Missing official contact details and office address: Be wary of websites that lack an official email address or phone number. Genuine businesses always provide ways to reach them. A credible business should list a physical office address on its website.
Lack of genuine customer reviews: The absence of reviews, or only generic, overly positive feedback, should raise doubts about the platform’s authenticity.
No return or refund policies: Trustworthy businesses clearly outline their return, refund, and shipping policies.
Poorly designed websites: Scam sites often have low-quality designs, excessive pop-ups, and third-party ads.
Weak social media presence: Legitimate brands usually maintain an active, verifiable presence on social media platforms.
Check the domain name: Scammers often use domain names that resemble popular shopping sites. Always double-check the spelling, especially when using search engines.
Use Who.is: For local businesses, use the free tool who.is to check domain details, including when the website was created, who registered it, and where it’s based. This can help verify its legitimacy.
Unrealistic discounts: If the prices seem too low to be true, proceed with caution. Genuine stores rarely offer extreme discounts.
Cash on Delivery (CoD): If the site offers a CoD option, it may be more trustworthy. However, it’s essential to do further checks before making a purchase.
Check the verification badge: If the Instagram business has a ‘blue tick,’ click on the profile to view details like when the business joined, where it is based, and whether it’s changed usernames. This can offer insight into its legitimacy.
Check the comment section: Read comments on posts to gauge customer experiences with the business before making a purchase.
Check contact details: Verify that the business provides an email address or phone number. If you’re communicating via Instagram Messenger, ask for more contact information to confirm their authenticity.
Look for watermarks on posts: Some businesses use stolen content from other accounts. If you notice a watermark on a video, it may indicate the content is from another business. Search for the watermark to find the original source.
Check for pinned customer reviews: Authentic businesses often pin positive reviews to the top of their profiles. Carefully read these reviews to assess the business’s credibility.
Use trusted platforms only: Stick to well-known e-commerce sites or verified social media sellers. Platforms like Amazon usually have reliable customer service, and buying from familiar brands can reduce the risk of fraud.
Read terms and conditions: Before making a purchase, review the platform’s terms, especially their refund, return, and shipping policies.
Save proof of transaction: Keep screenshots of conversations, payment receipts, and delivery updates. This documentation can be useful if you need to file a complaint or dispute a transaction.
“Authorities recommend reporting scams within 24 hours, also known as the ‘golden hours,’” said Tyagi. “Scammers are aware of this and often exploit the terms and conditions for processing purchases, extending the window to 48 hours or even up to seven days. This delay prevents users from realizing they’ve been scammed within the critical 24-hour window. Fraudsters know that timely complaints can result in their accounts being frozen. If victims fail to report the scam quickly, the stolen funds are moved rapidly through multiple accounts and withdrawn as cash, drastically reducing the chances of recovery,” he said.
Tyagi advised reporting any cybercrime on the cybercrime portal at ‘cybercrime.gov.in’ or contacting authorities via the 24/7 helpline number, 1930. Both platforms are regulated by the Indian Cyber Crime Coordination Centre (i4C), Ministry of Home Affairs, Government of India.
He also urged consumers to pause before making impulsive purchases, especially during sales. Buyers should verify the legitimacy of platforms or social media businesses, check customer reviews, and avoid payments outside trusted gateways.
