How to Avoid Social Media Shopping Scams

As back-to-school shopping ramps up, social media can be a great place to discover new brands and deals. Unfortunately, it’s also become a popular place for scammers to target shoppers.

What Is a Social Media Shopping Scam?

Social media platforms have become a popular and convenient way to discover new brands and products. However, an increasing number of scammers are using these platforms to create fake companies and sell products that don’t exist.

These scammers often steal logos, photos and product descriptions from legitimate brands to appear authentic. They may even respond to comments or answer questions to gain your trust. Their goal is to collect your payment information and disappear without delivering the products you ordered.

Example of the Scam

Maria is shopping for back-to-school supplies when she sees a sponsored ad on Instagram for a backpack that’s 50% off. The ad features high-quality photos and links to a professional-looking website with glowing customer reviews.

Convinced it’s a legitimate company, Maria places an order using her debit card. Weeks go by, but the backpack never arrives. When she tries to contact the company through its website or social media page, she receives no response.

Tips for Protecting Yourself

• Research the company. Before purchasing from a company you found on social media, verify that it’s legitimate by checking for a professional website, valid contact information, and a physical business address.
• Be skeptical of deep discounts. If a price seems too good to be true, it probably is. Compare prices with other retailers before making a purchase.
• Inspect the website and social media profiles. Look for poor grammar, inconsistent information, recently created accounts, or little engagement from other customers. These can all be signs of a fake business.
• Trust your instincts. If something about the company or the offer feels off, don’t make the purchase.
• Use secure payment methods. Credit cards often provide stronger fraud protections for online purchases than debit cards. If you’re shopping online, consider using a TVFCU credit card for an added layer of protection.

If You’ve Been Scammed

If you believe you’ve fallen victim to a social media shopping scam, take these steps:

• Contact us if your account information has been compromised, or you believe you’ve paid a scammer. We can review your accounts and help guide you through the next steps.
• Report the scam to the FTC. File a report with the Federal Trade Commission at ReportFraud.ftc.gov and notify your local law enforcement agency.
• Report the scam to your state Attorney General. You can find contact information at NAAG.org.
• Report the fake business to the social media platform to help prevent others from becoming victims.
• Monitor your accounts regularly for unauthorized transactions and report suspicious activity as soon as possible.
• Warn others. Share your experience online to help others recognize the scam.

Stay Protected With TVFCU

As families prepare for a new school year, remember that taking a few extra minutes to verify a business can help protect your finances.

The YOUR$ app makes it easy to monitor account activity, receive account alerts, and quickly spot suspicious transactions. If you shop online frequently, a TVFCU credit card offers fraud monitoring that can help identify unauthorized purchases.

If something doesn’t seem right, contact us or visit a local branch. Our team is here to answer your questions and help you protect what matters most.

For more tips on preventing fraud and keeping your information secure, explore our security resources.