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E-commerce scams
Tips on staying safe when shopping online.
E-commerce scams are prevalent in online marketplaces. These scams involve criminals posing as legitimate online sellers. They may use a standalone website, or a page or advertisement on a genuine retail website.
E-commerce scams can also involve scammers using deceptive tactics during a commercial transaction. For example, scammers may lure victims into paying for a genuine product but deliver a fake or inferior product—or not deliver a product at all.
Criminals continue to evolve their tactics. Here are some ways in which they may try to scam online shoppers.
The approach:
Posing as genuine online businesses
Scammers may set up fake ‘e-commerce sites’ that look like genuine retail websites. They may also set up their own stores on online marketplaces or social media, using sophisticated designs and layouts to pretend to be legitimate businesses. These stores may have limited information about delivery and other policies. Some may even advertise on social media to gain the trust of their victims.
Offers that are too good to be true
Scammers may put fraudulent products up for sale at unbelievable prices. They may claim that the products have amazing benefits or features that sound too good to be true.
Common scam tactics to look out for:
Demanding payment via off-platform methods
Once the scammers’ intended targets express interest, scammers may demand immediate payment via bank transfers or other off-platform methods. In some cases, they may even ask victims for their personal banking details (e.g. credit card numbers and bank account numbers), which they then use for fraud or sell them on the black market.
Impose hidden fees
After a first payment is made, fraudulent sellers may request further payment—supposedly for tax or delivery fees. These fees would not have been stated upfront.
Certain scammers may insist that victims pay upfront for vouchers before they can access a cheap deal or a giveaway.
Delivery of inferior items—or no items at all
Sometimes, scammers will deliver a fake product rather than the genuine product that the victims had paid for. Other times, victims get an inferior product or a product in suboptimal condition. In most instances, victims get nothing at all, as the scammers disappear with their money.
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Be sceptical
Do not trust lofty promises, deals that seem too good to be true or product listings that contain vague or little information about the products.
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Use only secure payment methods
Be wary of sellers who do not allow payment via secure payment methods (e.g. PayPal or a credit card).
Insist on making payment via the secure methods available within the e-commerce platform you are shopping on, or by paying cash on delivery of the product you have purchased. Never transfer money to unknown bank accounts, and never share your bank account and credit card details with anyone you do not know or trust.Avoid using virtual currencies such as bitcoin on lesser-known e-commerce platforms or sites. Payment in virtual currency is not protected in the same way that other transaction methods (e.g. credit cards) are, so you will not be able to get your money back.
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Do your research
If you are shopping on an e-commerce platform, always deal with reputable sellers who have good independent ratings and reviews, and have been with the platform for some time. When in doubt, do your research: Search for the name of their shop on a search engine or a social media website, and see what others have to say about their experience with the business. Ask your family and friends if they have heard of the shop or their products.
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Read their T&Cs and policies
Especially for high-value items, use reputable e-commerce platforms with consumer protection and fair refund/return policies. Reputable platforms have detailed complaint or dispute handling processes. Check what their guarantees are before you buy from a seller through their platforms.
Always check the Terms & Conditions and ensure fees, taxes and any other charges are stated upfront. Be wary of sellers who do not provide their contact details, or who provide inadequate information about privacy, terms and conditions of use, or dispute resolution.
Call us
If you believe you have fallen prey to a scam and/or your OCBC account details/funds may have been compromised, please call our Personal Banking hotline.
Contact the police and file a report
Contact the platforms involved
Report the scammer to the e-commerce platform, social media website or classified ads website that you purchased the product from and/or where the scammer approached you.
Spread the word
Tell others about your experience to help educate and protect them.