The holiday season brings huge discounts and attractive deals from various online shopping platforms. However, it also provides the perfect opportunity for scammers to target unsuspecting shoppers. In this week’s edition of The Safe Side, we Take a look at the most common e-commerce-related cybercrimes of 2024 and share some helpful tips to help you stay safe from shopping fraud.
For Netra (name changed), Diwali shopping on Instagram became a nightmare. While one store delivered the wrong item and refused a refund, another took the money but never delivered the package, and eventually stopped him. Both businesses avoided formal communication channels, relying solely on Instagram direct messages.
Shivangi (name changed) faced a similar ordeal after paying for a phone cover in advance and finding it cute. Instead, she got a cheap bottle of face wash, and that too after waiting for a month. Priyanka (name changed) has been waiting two months for her order with no response to her complaint. Both admit they acted impulsively, ignoring obvious ‘red flags’.
Ishaan (name changed) ordered shoes for Rs 2,000 but received poor quality products. When he tried to raise the issue, the seller stopped him. Such scams, including fake websites that look like genuine e-commerce platforms, are becoming alarmingly common.
With internet users in India estimated to reach 900 million by 2025, and to grow from 250 million in 2023 to 425 million by 2027, scammers have a large pool of potential victims.
What are the most common online shopping scams in India?
“When high-discount sales are in full swing, scammers create fake websites on similar-looking domains like Amazon or Flipkart and use good search engine optimization (SEO) techniques to rank their websites at the top. These scammers also run Google ad campaigns for fake sales. , showcase products at incredibly cheap prices. Users easily trust these websites because they look authentic and often rank high in search results,” said Arya Tyagi, cyber security researcher and founder of Webhack Solutions.
Tyagi revealed that there are three main types of online shopping scams:
Fake ads on real platforms: Scammers run ads on legitimate e-commerce platforms, luring people to buy from their fake websites at cheap rates.
Discount net with additional offers: Scammers offer products at an initial 20 percent discount and then present additional deals, such as “Add XYZ product to receive an additional 50 percent discount,” enticing shoppers to spend more and lose big.
Fake Fashion Website Investment Schemes: In this latest scam, scammers sell products at discounted rates under the guise of fashion websites. For example, beauty products worth Rs 20,000 can be offered for Rs 15,000. However, there is a catch as buyers are told that the products will be delivered only after 30 days. To make it more convincing, scammers promise daily monetary returns as an investment. Ultimately, the buyer receives neither the products nor the promised money.
Always verify shopping websites to avoid scams during holiday sales. (Image: Freepik)
Why Scammers Target Holiday Sales
Holiday sales provide fertile ground for scammers to exploit unsuspecting buyers. The combination of increased online activity and the urgency of the festive season makes consumers more vulnerable to fraudulent schemes.
Several factors make holiday sales especially attractive to scammers:
Increased online traffic: Holiday discounts and promotions lead to an increase in online shopping activity. This spike in traffic makes users more likely to click on malicious links or fake websites, often without realizing it.
Less cautious buyers: The festive rush creates a sense of urgency, causing buyers to act impulsively and ignore basic precautions, making them easy prey for scammers.
Inexperienced online buyers: The holiday season often attracts traditional offline shoppers, who, encouraged by family or friends, turn to online shopping. Their lack of familiarity with online platforms and common fraud tactics makes them particularly vulnerable.
Top red flags and tips for spotting shopping scams:
To protect yourself from online scams, shoppers should be vigilant and watch for these warning signs:
No Cash on Delivery (CoD) Option: Legitimate platforms usually offer CoD. If a website insists on unorthodox payment methods or avoids trusted gateways like net banking or UPI, it can be suspicious.
Official contact details and office address are missing: Be wary of websites that do not have an official email address or phone number. Real businesses always offer ways to reach them. A reputable business should list a physical office address on its website.
Scammers use tempting deals to lure you in – spot the red flags before it’s too late (Image: Freepik)
Lack of real customer reviews: The absence of reviews, or just general, overwhelmingly positive feedback should raise doubts about the authenticity of the platform.
No return or refund policies: Reputable 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.
Poor social media presence: Legitimate brands typically maintain an active, authentic presence on social media platforms.
How to verify if a website or store on social media is authentic:
Check the domain name: Scammers often use domain names similar to popular shopping sites. Always double-check spelling, especially when using search engines.
Use Who.is: For local businesses, use the free tool who.is To check the domain details, when the website was created, who registered it, and where it is based. This can help verify its validity.
Unrealized discounts: If prices seem too low to be true, proceed with caution. Real stores rarely offer extreme discounts.
Cash on Delivery (CoD): If the site offers a CoD option, it may be more reliable. However, more checks need to be done before purchasing.
For social media or Instagram businesses:
Check the verification badge: If an Instagram business has a ‘blue tick’, click on the profile to see details such as when the business joined, where it’s based, and whether it has changed usernames. This may provide insight into its validity.
Check out the comments section: Read comments on posts to gauge customer experiences with a business before making a purchase.
Check contact details: Verify that the business has provided an email address or phone number. If you are communicating via Instagram Messenger, ask for additional contact information to confirm their authenticity.
Look for watermarks in posts: Some businesses use content stolen from other accounts. If you see a watermark on a video, it may indicate that the content belongs to another business. Search for watermarks to find the original source.
Check for pinned customer reviews: Authentic businesses often pin positive reviews at the top of their profiles. Read these reviews carefully to assess the credibility of the business.
Tips to stay safe:
Use only trusted platforms: Stick to well-known e-commerce sites or verified social media vendors. Platforms like Amazon generally have reliable customer service, and buying from familiar brands can reduce the risk of fraud.
Read the terms and conditions: Before making a purchase, review the platform’s terms, especially their return, refund, and shipping policies.
Save proof of transaction: Keep screenshots of conversations, payment receipts, and delivery updates. This document can be useful if you need to file a complaint or dispute a transaction.
What to do if there is fraud?
“Officials recommend reporting scams within 24 hours, also known as the ‘golden hour,'” Tyagi said. “Scammers are aware of this and often exploit terms and conditions to process purchases, extending the window to 48 hours or seven days. This delay prevents users from realizing they’ve been scammed within the critical 24-hour window. Fraudsters know that timely complaints If victims fail to report the scam quickly, the stolen funds are quickly moved through multiple accounts and cash withdrawn, which greatly reduces the chances of recovery,” he said.
Tyagi advised to report any cyber crime to cyber crime portal.cybercrime.gov.in‘ or contact the authorities through 24/7 helpline number, 1930. Both platforms are regulated by the Indian Cyber Crime Coordination Center (i4C), Ministry of Home Affairs, Government of India.
He also urged consumers to refrain from making impulse purchases, especially during sales. Buyers should verify the legitimacy of platforms or social media businesses, check customer reviews, and avoid payments outside of trusted gateways.
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