CROMWELL, Conn.—Nov. 23, 2020—People are predicted to spend just under $1,000 this holiday season on friends and loved ones, according to the National Retail Federation. This amount is slightly less than what was spent during the 2019 holiday season. Due to the COVID-19 pandemic, most consumers are expected to do most or all of their holiday shopping online.
Much of the 2020 holiday gift shopping will more than likely involve searching for products online, and as BBB reported recently, the prevalence of online purchase scams will rise. Online purchase scams ranked among the top three riskiest scams for the last three years, according to the 2019 BBB Scam Tracker Risk Report published in March 2020, shortly after COVID-19 shut down much of the economy.
Experts predict at least a 35 percent increase in e-commerce sales allowing retailers to enhance online offerings much earlier than the traditional Black Friday deals and some 42 percent of consumers have started shopping earlier than normal this year. For consumers, this also means more reading, researching, and checking on both the products and the sellers legitimacy before making their purchase.
BBB recommends the following tips to “Shop Safe, Shop Smart” this holiday season:
- Research before you buy. Out of the 57 percent who did not research the website or business via an independent source (*like BBB.org) before making a purchase, 81 percent lost money.
- Don’t shop on price alone. The top motivating factor for people who made a purchase, then lost money was price. If the deal looks too good to be true, it probably is.
- Beware of fake websites: Check the URL, watch for bad grammar, research the age of the domain, search for contact information, and read online reviews.
- Professional photos do not mean it’s a real offer. Respondents reported that website photos motivated them to engage with scammers, especially for pets/pet supplies, clothing/accessories, and vehicles.
- Make sure the website is secure. Look for the “https” in the URL (the extra s is for “secure”) and a small lock icon on the address bar. Never enter payment or personal information into a website with only “http” – it is NOT secure.
- Shop small when possible. Visit local boutiques or businesses to find unique gifts for friends and family. You can also purchase gift cards to help local restaurants. If you want to continue to see local businesses in your neighborhood you have to do your part to help them survive.
- Beware of making quick purchases while scrolling through social media. Scammers have access to tools they need to learn about your buying behaviors, offering exactly what you want at enticingly low prices.
- Use secure and traceable transactions and payment methods. According to BBB's research, those who paid with a credit card were less likely to lose money. Be cautious when paying by digital wallet apps, prepaid money cards, or other non-traditional payment methods.
- Shipment tracking information can be faked. Look closely to make sure it is a legitimate business. Avoid clicking on the tracking link; go to the 'shipper's website and type in the code to see if it is real.
- Look for the BBB seal. BBB Accredited Businesses pledge to uphold the BBB Standards for Trust and to deal fairly with consumers. If a business displays a BBB seal, verify it by going to BBB.org.
Report unsatisfactory purchase experiences to BBB. If you are unhappy with a purchase, file a complaint at BBB.org/complaints. If you never got what you paid for, consider reporting it to BBB Scam Tracker ( BBB.org/ScamTracker) to help other consumers avoid being scammed.
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