How to Protect Yourself from Online Shopping Scams

Posted on: May 26, 2023 | | Written by:

How to Protect Yourself from Online Shopping Scams

Published on May 25, 2023. EST READ TIME: 4 minutes

There is a steady rise in the number of people opting for online shopping over the past few years. And there are good reasons for the same. As companies deliver without any additional charges or minimal charges, it makes it incredibly convenient for buyers. Looking at the demand, even more, categories are introduced every day. However, this massive surge in online demand also makes way for bad actors in the form of online shopping scams.

Since the number of users is only growing, fraud during online shopping has become even more of a nuisance. There are a lot of instances, where people have ordered expensive smartphones and received bricks or shampoos in return. However, there are a few simple measures that will protect you from such scams and frauds. And in the unfortunate event that you have been scammed, what should you do and where should you file a complaint?

What is online shopping fraud?

Any fraud that takes place while you are shopping online for products is an online shopping fraud. A common method includes scammers who pretend to be legitimate sellers. They can do so either with fake advertising or by getting you onto a fake website.

What are the different types of online fraud?

The following are some popular frauds during online shopping. And being aware of them will help you steer clear of them.

1. Fake websites

In this, fraudsters set up fake online stores and e-commerce websites. Alternatively, they can even post fake products on genuine websites. Once they trick consumers into buying these fake products or visiting their fake websites, they can steal the card information and steal money from the consumers.

2. Friendly fraud

This is a type of fraud in which someone makes a purchase and requests the payment processing company for a refund, saying that the transaction is not valid. The bank or credit card company then returns the amount to the customer and the retailer must pay the amount. In this type of fraud, the customer keeps the product or service without ever paying for it. It is called friendly fraud because there is a chance that the customer might be telling the truth.

3. Account fraud

This type of fraud happens when someone takes over the account of a consumer. The account is usually that of an e-commerce website. They can take the help of different tools to get access to the account. And once they do, they can do a lot of fraudulent activities from your account. Activities such as buying things, withdrawing funds, changing user details, etc. One of the easier ways to handle such situations is to opt for a cyber insurance policy.

4. Triangulation

This is a more complex form of fraud, which involves different parties. For starters, the person who is doing the fraud is an e-commerce website and a shopper. The first step is to set up a storefront on popular e-commerce websites and sell products that are in high demand. The fraudsters usually list these products at unbelievable discounts.

Once genuine customers place orders, the fraudsters use stolen credit cards to place actual orders. Though a consumer might receive a product at great discounts, there are two losers in this transaction. The person whose credit card was stolen and the e-commerce website.

5. Interception

In this type of fraud, the fraudster places an order on an e-commerce website. However, they are careful to place the order to the same address as that of a stolen credit card. After the order is placed, their main target is to intercept and keep the package for themselves.

They can do this in different ways. For starters, they can call the e-commerce website to change their address before the product is shipped. Alternatively, they can even call the logistics company to request a change of address.

What to do if you have been defrauded?

In the unfortunate event that you have been defrauded, you should first reach out to the e-commerce website and file a complaint with them. You can do this either by calling their customer service or by chatting on their platform. Apart from this, you must also file a complaint with INGRAM (integrated grievance redressal system).

You can also file a complaint on the consumer affairs website or visit a consumer court to file a complaint. Another way to handle such situations is to visit a police station or complain to the cyber crime branch.

How to protect yourself?

It is essential that you always buy products from renowned and reputed websites. Ensure that you choose products that are offered by sellers that are verified. And do not fall into the trap of discounts which are hard to believe.

Apart from carrying out these simple measures, cyber insurance for shopaholic persons is highly recommended. The chances are high that shopaholic people might end up buying products from different sources and websites. And these can increase the chances of fraud. Thus, cyber insurance for shopaholic people is sensible.

You can also buy cyber insurance for family since it will serve a lot of other purposes than keeping you away from online fraud. A cyber insurance policy is affordable and offers a bunch of coverage against most online perils.

Conclusion

As the number of online users increases, the chances of online crimes also increase by several folds. It is essential to remain vigilant and carry out a few simple measures to keep yourself safe from such fraud. Buying cyber insurance for family is one of the better ways to stay protected. Especially if you have senior parents.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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