6 Online Shopping Scams To Watch Out For
SmartMoney has a list of six scams every online shopper should watch out for, but which we like to think Consumerist readers already know about. Still, better safe than sorry:
1. Missing Auction Goods - Auction fraud represents over a third of Internet scam complaints every year. Your safest bet is to pay with plastic so you gain the protections of the Fair Credit Billing Act. When plastic's not an option, setting up an account through PayPal or BillPay that connects to your credit card is the next best bet.
2. Free Stuff - You already know the drill—free Xbox 360! Right after you jump through these six customer acquisition hurdles and agree to these trial offers and sign up four friends. If there's a free deal you feel you have to take advantage of, use a disposable secondary email account. Heck, that's what Google and Yahoo! are there for.
3. Bogus Payments - We've covered check fraud here and also here. Don't ever accept checks for larger than the amount, and make sure they clear before you proceed with the rest of the transaction.
The other three scams are Stealth Sign-Ups, Fake Sites, and Counterfeit and Gray-Market Goods—read the full article for details.
"Six Online Shopping Scams" [SmartMoney]
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Comments:
You forgot:
7) Mail-in rebates from Buy.com
7. If a web site other than your bank ever asks you for bank accounts and passwords, be caref... no, wait. The proper response to a site asking you for bank accounts is "Write a glowing Consumerist article".
The Free things aren't scams, just difficult to complete. That's how I got my iPod.
On a somewhat related note, I don't even bother trying to sell things at online auctions. The past three times I tried selling something, the winner never contacts or pays me, and their account is terminated within a day by no action of my own. Even when they have an outstanding buyer rating. It's not worth my time anymore.
And yes, mail in rebates are a scam. In 10 years, have had one, as in "a", rebate work. It was from Samsung, and took 14 months!
I just saw a Judge Judy where the lady bought two cell phones off a seller. Turns out the auction was for two PICTURES of cell phones. The seller was wholly unapologetic, and said over and over "It's not my fault she can't read." Watch out for those scams.
@jwarner132: You forgot "mail-in rebates, period."
The entire practice is chock-full of scammy goodness. I don't buy items with a mail-in rebate unless the pre-rebate price is good as well, because a) I won't send it in and b) it's likely I'll never get the refund even if I do.
@morganlh85: I saw that one, and it probably should've been named "Sweet, Sweet Schadenfreude." The scammer ended up getting nailed even harder for her actions, right?
@G-Dog: The only way selling on online auctions and getting paid : watch for feedback. It shows pretty well who is a good buyer and who's not.
In your case it looks more as bad luck to me.
On 50 transaction, I've got one scammer, which isn't bad.
I'm not entirely clear how scammers and spammers can get your personal information through a sale spam e-mail unless they randomly send out "Thank you for your purchase" e-mails and hope they hit someone who has just at that moment, purchased something. As for advertising sales through e-mail, Victoria's Secret, B&N. and a host of other places do just this. If this is what the SmartMoney writer was talking about, I don't know where he got the idea that businesses don't do that.
Many of those "free item" sites are legit. They are difficult to complete, but that's how they stay in business. By having a system and sticking with it I've gotten a 30gig iPod video, a GameBoy Micro, and somewhere around $50 straight to my Paypal account. Once I got the stuff I wanted I retired from the "free stuff" scene, but I could go back and get myself a 360 if I really wanted to. That's not to say there aren't sites that really are scams, but a lot of them are on the level.
Always call the bank associated with any check and verify the account and funds. You can check the routing number on the check on the internet to see if the check is properly identified. Call the number on the internet verified address.
I've had two "cashier's" checks sent to me that were fraudulent. And in both cases the bank was able to tell me very quickly that I should not be attempting to deposit the check.
Plus, it's safer to call than taking a potentially fraudulent check into a Bank of America... They'll arrest you for taking to the counter for help. See www.clarkhoward.com for more.