Beware of Black Friday Scams: Protecting Yourself in the Online Shopping Frenzy

November 20, 2024

As Black Friday approaches, the excitement for holiday shopping fills the fall air. Countless look forward to and save all year for the unbeatable deals, seasonal savings, and frenzied shopping experience. Yet there is a dark side of this retail bonanza which often goes unnoticed. Just as shoppers flock to stores for discounts, scammers are ready to exploit the rush. With an increase in online shopping, especially post-pandemic, the risks of falling victim to Black Friday scams have never been higher.

The Rise of Black Friday Scams

Black Friday, traditionally the day after Thanksgiving, marks the beginning of the holiday shopping season. It has transformed into a global phenomenon, with retailers offering massive discounts both in-store and online. According to the FBI’s internet Crime Complaint Center (IC3), reports of online fraud make a significant spike during this global phenomenon. In 2022 the IC3 reported over 800,000 complaints related to various forms of internet crime, with significant losses attributed to online Black Friday shopping scams.

The Federal Trade Commission (FTC) noted that in 2022, Americans lost approximately $1.3 billion to online scams, with a substantial portion occurring during the holiday shopping period. As consumers scramble for the best deals, scammers capitalize on their urgency and excitement, creating the breeding ground for fraud. This number has only gone up since 2022 and FBI’s annual internet crime report indicated that in 2023 there was a 22% spike in losses from online scams.

3 Common Types of Black Friday Scams

Understanding the different types of common scams prevalent during Black Friday can help consumers recognize potential threats

Phishing Emails and Fake Websites

Scammers will often send emails that appear to be from legitimate retailers, offering unbelievable deals. These emails may contain links to counterfeit websites designed to steal personal information, such as credit card numbers and login credentials. According to ProofPoint, phishing attempts increase by nearly 200% during the holiday season. Be wary of unsolicited emails, especially those urging you to click links of provide sensitive information. Go directly to the company websites and see if the deals are available there.

Figure 1: Walmart phishing site deployed in Brazil, Source: phishtank.org

Counterfeit Products

As shoppers seek discounts, some may fall victim to fake retailers selling counterfeit goods. Whether it is electronics, clothing, or popular toys, scammers often advertise products at prices that seem too good to be true. The National Association of Secretaries of State (NASS) reports that counterfeit goods lead to billions in losses every year. This only amplifies during the high-demand season. Before making a purchase always research the seller and check for reviews before clicking that “purchase” button.

Figure 2: Counterfeit Rolex watches for sale

Online Auction and Marketplace Scams

Platforms such as eBay and Facebook Marketplace can be breeding grounds for scams during Black Friday. Fraudsters may list items at enticing prices, only to disappear after receiving the payment. The Better Business Bureau reported a 25% increase in complaints related to online marketplace scams during the holiday season in 2023. It is pivotal to verify the credibility of sellers and if a deal seems too good to be true, it probably is.

Figure 3: User looking to sell counterfeit gold through a verified eBay seller; Source: DarkOwl Vision

Who is Most at Risk?

Anyone can fall victim to online scams, however certain demographics are more vulnerable than others. According to FTC, older adults are often targeted because they have less experience with online shopping and digital safety practices. The other demographic that is often targeted is young shoppers as they can be more focused on finding a good deal than watching for warning signs. Regardless of age, it is crucial for all consumers to be aware of potential scams and educate themselves on how to identify them.

How to Avoid Black Friday Scams

Verify Website Security: Always check for “https://” at the start of the URL and look for the padlock icon in the address bar before entering any personal information. These indicate that the site is secure.

Research the Retailer: Prior to making a purchase from an unknown site or company, research the retailer. Look for reviews and check the Better Business Bureau for any complaints. Remember if a deal seems too good to be true it likely is so take time to ensure the legitimacy of the website and its offers.

Use Secure Payment Methods: Opt for secure payment methods, such as credit cards or trusted payment services like PayPal, Venmo, or Zelle. These options often provide buyer protection in case of fraud. Avoid sending money via wire transfer or using prepaid gift cards, these are common methods scammers use to receive payments.

Be Wary of Emails and Ads: Always avoid clicking on links in unsolicited emails or advertisements. Instead, navigate to the retailer’s website directly by typing the URL into your browser. Legitimate retailers will not ask for sensitive information via email.

Enable Multi-Factor Authentication: For added security, enable two-factor authentication on all accounts. This adds an extra layer of protection against unauthorized access. Always take advantage of security features offered by online platforms.

Stay Informed: Knowledge is power, be aware of the latest scams circulating. Websites such as IC3 and FTC regularly publish alerts and information on prevalent scams during the holiday season. Staying informed is a powerful tool in protecting yourself and your loved ones from fraud.

While Black Friday can be an excellent opportunity for savings, it’s essential to approach it with caution. The dark web serves as a reminder of the dangers lurking in the digital space, where scammers exploit human psychology and urgency. This year for Black Friday, start by prioritizing your safety by staying informed and adopting best practices to protect your personal and financial information. By being proactive and vigilant, you can enjoy the holiday shopping experience, find some great deals, and keep the funds you don’t want to spend, safely where they belong.