When you’re shopping online, it’s important to be cautious about more than just what you’re buying and how much you’re spending. If you’re considering shopping on platforms like Amazon, Etsy, and Walmart that host third-party sellers, you need to be on the lookout for scams.
Derrek Casebolt thought he was getting a great deal when he purchased a gaming controller and headphones bundle for about $100 from a seller on the Walmart app. However, he soon realized he had been scammed when he received a fake tracking number for the order. “I saw the number, and I was like, ‘That’s not right.’ I immediately knew,” Casebolt shared.
After discovering the scam, Casebolt tried to contact the seller without success. He then informed Walmart, but they were unable to provide much assistance. Fortunately, the bank that issued Casebolt’s credit card removed the charge.
A TransUnion study from the second quarter of 2024 revealed that 18% of consumers targeted by online fraud were victims of third-party seller scams on legitimate e-commerce websites.
Understanding Third-Party Seller Scams
While most third-party sellers are reputable businesses, some engage in fraudulent activities to deceive buyers. Being aware of common scams can help you protect yourself. Examples of third-party shopping scams include:
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Selling products at unusually low prices that turn out to be counterfeit, defective, or non-existent.
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Providing fake tracking numbers or sending the wrong item.
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Refusing returns or charging high shipping fees for returns.
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Requesting payment outside of the marketplace.
Verifying the Seller
It’s essential to confirm whether an item is being sold by a third party or the platform itself. Pay attention to search results and product descriptions to make this distinction.
Platforms like Amazon and Target provide information about the seller on their product pages. Look for designations like “sold by Amazon.com” or “sold and shipped by” for Target Plus Partners. Top-rated sellers are usually trustworthy.
Reading Reviews
Take the time to read individual reviews rather than just looking at the overall rating. Be wary of overly positive reviews, as they may be biased. Tools like Fakespot can help you analyze reviews for authenticity.
Mismatched reviews or images can indicate a scam. If reviews don’t match the product you’re viewing, proceed with caution.
Understanding Retailer Policies
Major platforms like Etsy and Amazon offer buyer protection against fraudulent sellers. Familiarize yourself with their refund and return policies to know your rights as a consumer.
Using a Credit Card for Payment
Paying with a credit card provides added protection compared to other payment methods. You can dispute charges within a certain timeframe if you encounter issues with a purchase.
Keeping Records Secure
Maintain documentation of your online transactions, including product details and communications with sellers. These records can be valuable in case of disputes or fraud.
Protecting Your Credit
Consider freezing your credit to prevent unauthorized access to your credit reports. This can help thwart fraudsters from using your information for malicious purposes.