How to Know if an Online Store is Legit: Tips for Spotting Scams

Online shopping can provide fantastic convenience and competitive pricing but comes with risks. With ecommerce fraud and sophisticated online scams on the rise, how can you tell if an online retailer is trustworthy? Follow these tips to verify an online store’s legitimacy before making purchases.

According to the FBI’s Internet Crime Complaint Center (IC3), victims lost over $3.3 billion to online fraud in 2022 alone. As more consumers have flocked to the internet for shopping over the past few years, cybercriminals have doubled down on creating fake ecommerce sites designed to steal money and personal information. But with some diligent research and skepticism, you can avoid getting scammed.

This article will advise evaluating an online store’s legitimacy before handing over your money. We’ll explore essential factors like web presence, contact information, payment security, product listings, reviews, etc. Follow these tips, and you can shop online with much greater confidence.

Do Your Research on the Retailer

Before buying from any unfamiliar online store, you should start with basic background research. Search for the store’s name plus words like “scam,” “fake,” or “complaint” to uncover any red flags. Check if other customers have reported fraudulent charges or received shoddy or incorrect products.

You can also look up when the online store’s website was registered. Recently registered sites with little web history are riskier. Search the store’s name on the Better Business Bureau website to view ratings, complaints, and more.

Additionally, browse the retailer’s website and social media pages. Do they maintain an active Facebook page and Instagram with customer engagement? Professional websites and detailed “About Us” pages with company history also add legitimacy.

Complete contact information is a must. Only shop from sites listing an actual street address, phone number, and customer service options like email and live chat.

Evaluate the Online Store Website Itself

A site’s design and content provide more clues to its authenticity. Click the “Contact Us” and “About Us” pages and ensure they contain detailed information without spelling or grammar issues. Typographical errors elsewhere on the site or sentences that sound translated from another language can indicate an overseas scam.

Examine the website’s URLs for extra hints. Secure sites should begin with “HTTPS” rather than “HTTP.” You should also see a closed padlock icon in the address bar. These features mean your connection is encrypted for data security.

Also, check that the site has clear shipping/return policies and terms of use posted. And be wary of too-good-to-be-true claims about the products like miracle cures.

Be Wary of Red Flags

While shopping online, watch for any suspicious behaviors that deviate from the norm. Highly discounted prices on luxury items are a common tactic of counterfeit sites. Discounts up to 70-80% off unrealistic retail prices could indicate a scam.

Also, be cautious if an online retailer requests unusual payment methods like wire transfers, gift cards, crypto payments, etc. Only provide your credit card information to trusted sites with secure checkout processes.

If product listings need details like materials, sizing, origin country, etc., or the seller can provide additional information or photos when asked, this suggests sketchiness. Avoid sites with zero product reviews or pictures that appear copied from elsewhere online.

And steer clear if an online store refuses to calculate final costs like taxes and shipping upfront. Hidden fees or last-minute payment requirements are red flags.

Verify Payment Security

One critical step is to check that the online retailer processes payments through secure methods like encrypted payment gateways. Look for McAfee SECURE, Norton, or Truste verification on checkout pages. These signify compliance with PCI standards for safely handling card data.

Ideally, only make purchases directly on a site and never respond to an unsolicited email with embedded payment links, which could be fraudulent. When checking out, ensure the URL begins with “HTTPS” and shows a closed padlock.

To confirm that your credit card issuer authorizes payments, call the customer service number on your card. Ask if they show merchant verification demonstrating the website accepts credit cards safely.

Do a Trial Order

If you still need to decide about a new online store, consider placing a small trial order first. This allows you to judge delivery timeframes, product quality, and customer service when issues arise.

Monitor the order status closely through any tracking information provided. Reputable sellers will make this easy to follow online and via email updates.

When your order arrives, thoroughly inspect the packaging, products, invoices, return labels, and other contents. This gives more insight into an online retailer’s overall legitimacy.

Additionally, monitor your transaction history and statements to ensure you were only charged the agreed amount without any questionable or recurring fees.

Research the Product Listings

Con artists often steal photos of popular products from other websites to use on their fake storefronts. To check for this, grab a few product images and run them through a reverse image search like Google Images or TinEye.

See if the same photos appear on multiple shady-looking sites under different names. Various sites using identical images raise suspicions.

You can also copy product descriptions word-for-word into a search engine to check for duplicates elsewhere. Unique product descriptions are a sign of a legitimate retailer.

Furthermore, closely compare prices for goods across a few different online sellers. If one store’s prices are drastically lower for the same items, fraud could be likely.

Read Reviews, Complaints, Ratings

Reviews from independent consumer sites can provide additional insight into a company’s track record. Search the online store’s name on Trustpilot and Reviews.io for customer reviews. Many exposes of counterfeit sites reveal multiple angry comments about fraudulent charges and terrible or missing products.

Check third-party rating sites like BBB before buying. But remember that ratings can be misleading – a lack of complaints sometimes equals legitimacy. Scam sites often have no ratings at all.

For additional transparency, look up the company’s public filings and business documents on online government repositories. This helps verify identities and commercial standing.

Conclusion

Applying these tips – researching sellers thoroughly, scrutinizing websites, watching for red flags, confirming payment security, testing orders, checking product listings, and reading reviews – gives you the best chance at spotting illegal online scams. Stay vigilant, trust your gut feeling, and avoid taking online discounts at face value. Follow these steps and your odds of becoming the victim of ecommerce fraud drop dramatically.

Shop online safely and smartly using the checklist provided in this article. Being an informed consumer is the top defense against the surge of sophisticated online retail scams. With more precautions, you can continue enjoying the unparalleled selection and savings of internet shopping.

Related Questions:

How can you check online store reviews?

To verify online store reviews, first look for reviews on independent consumer sites like Trustpilot and Reviews.io rather than reviews hosted on the retailer’s website, which could be biased or faked. Search the store’s name and scan the results for any alarming complaints about fraudulent charges, counterfeit products, etc. Also, determine if negative reviews seem realistic and authentic, not planted. Check if reviewers have account histories, profiles, other studies, and details showing extensive first-hand experience with the site. Reviews that seem generic, overly optimistic, or meaningless should be considered less credible.

What are the signs of an untrustworthy website?

Warning signs of an untrustworthy retail website include lack of complete contact details, unsecure checkout pages without HTTPS/SSL encryption, pervasive spelling/grammar errors, prices that seem unrealistic, threatening language about the need to buy immediately, generic product descriptions and photos, and missing policies for shipping, returns, etc. Avoid sites with zero social media presence or online history, excessive popups/ads, or that solicit personal details irrelevant to purchases.

Is it safe to use a debit card on unfamiliar sites?

Using a debit card on unfamiliar ecommerce sites is generally not recommended since it drains funds directly from your bank account with less fraud protection. Credit cards are safer for online purchases in new places thanks to zero liability policies against fraudulent charges. If you must use a debit card, only shop sites that are HTTPS-secured and exclusively use trusted third-party processors like Stripe. Avoid entering your debit card on sites that email or call asking for your card number directly.

How do I identify fake customer reviews?

Strategies to identify fake customer reviews include:

• Being skeptical of only 5-star ratings with vague praise.
• Reviewing the username and history of reviewers to watch for patterns.
• Checking if details match the actual product/service.
• Caring for duplicates posted across sites.
• Looking at the spread of ratings.

Authentic reviews will have a good mix of ratings based on verified experiences. Thoughts that seem scripted or repeat product specs are less credible.

What qualifies as an online shopping scam?

Common online shopping scams include phishing sites mimicking authentic brands, retail locations that charge cards without delivering promised products, sellers using fabricated testimonials and reviews, advertisements with fake celebrity endorsements or limited-time offers, emails deploying malware through purchase links, and retailers that sell knock-off products as authentic versions.