Think Before You Click: Avoid Online Shopping Scams

The Rise of Online Shopping Scams

HONOLULU (HawaiiNewsNow) - The holiday season is a time for shopping, but it's also a peak time for scammers looking to take advantage of unsuspecting consumers. With more than 90% of Americans shopping online, the digital marketplace has become a prime target for fraudulent activities. According to a Pew Research Center survey, over a third of Americans have fallen victim to an online shopping scam, whether it was receiving counterfeit products or items that never arrived.

Linda Ezuka, executive director of the Hawaii Bankers Association, highlighted the challenges during this busy time. "It's such a busy time. And we’re out there, busy, maybe a little distracted, and we’re buying more," she said. Federal Trade Commission data reveals that Hawaii consumers lost over $61 million last year due to fraud, primarily through online shopping, social media ads, Facebook marketplace scams, and fake retail websites that trick shoppers into revealing their bank and credit card information.

Email Subscriptions: A New Target for Scammers

Criminals are increasingly targeting email subscriptions as a way to deceive consumers. "They’re impersonating businesses," Ezuka explained. "So while you thought that you were purchasing something online from a reputable business, it may not be." She advised shoppers to carefully examine all URLs and ensure there are no typos or unusual characters in the website URL or in the emails they receive. Checking the sender’s information is also crucial to confirm that it truly comes from the vendor you are purchasing from.

When it comes to online shopping scams, the majority of victims are under the age of 30, contrary to what some might expect. If a deal seems too good to be true, it likely is. Red flags include extreme discounts or limited-time offers that pressure you to make a purchase immediately.

Tips to Stay Safe While Shopping Online

Ezuka recommends pausing and stepping away from the social media loop. "Maybe just go to the source website and check if they're still offering that 40% or 50% discount to see if it's legitimate before purchasing on social channels," she suggested. Another important tip is to use secure payment methods, such as credit cards that offer fraud protection.

If you do become a victim of a scam, don't feel ashamed—report it to your bank and the police. "Call the number on the back of your card, whether that be a debit card or a credit card, and call and explain the scenario, and then they will help you either pend the transaction if it hasn’t completely posted yet, if it’s early enough, or start to work with you on putting a hold," Ezuka said. "The sooner you report it, the more that they can address it, right? So our tellers, for example, are very well trained on spotting fraud, and really trying to ensure that we protect people’s deposits and their money."

Staying Vigilant and Educated

Experts emphasize that the best defense against online scams is skepticism. "Slow down, take a breath, think before you click, and before you purchase, really ensure that you know about the vendor you’re transacting with, and follow up immediately if you suspect fraud," Ezuka advised. The Hawaii Bankers Association will continue to provide more tips through its fraud awareness campaign this month.

For additional resources on protecting your money, AARP is hosting a Town Hall on December 13th at 9 a.m. You can call 866-654-9490 toll-free to join the call or visit the AARP Hawaii Facebook page to ask questions in the comment section.