The Smart Shopper's Guide to Avoiding Black Friday and Cyber Monday Scams

As the holiday shopping period approaches, Black Friday and Cyber Monday have grown in popularity among shoppers looking for deals and discounts. In recent years, these discounts have grown from one-day events to month-long shows, with bargains beginning as early as November 1st and continuing through Cyber Week and even December. The move to internet purchasing has been especially striking, with mobile phones accounting for a record 79% of Cyber Week e-commerce traffic in 2023.

However, as internet purchasing becomes more popular, the potential of scams and fraudulent acts increases. Cybercriminals and scammers are capitalizing on the shopping excitement, employing complex tactics to target unaware shoppers. The purpose of this guide is to educate you about the scams you might encounter during this period and provide tips to help you avoid them.

Watch the latest trends of Black Friday Scams:

Scams to Watch Out For

Fake Online Stores

Fake online stores have emerged as a big danger to the digital retail landscape, particularly during major sales occasions such as Black Friday and Cyber Monday. These fraudulent e-commerce sites are meant to resemble actual stores, luring customers with the promise of unbelievable deals and discounts.

The fraud usually involves establishing websites that look very similar to well-known companies or big online retailers. Scammers take advantage of the excitement and urgency of the holiday shopping season to lure customers into completing purchases from these fraudulent websites. After placing an order and providing payment information, the customer may receive counterfeit goods, low-quality things, or nothing at all. In many cases, scammers flee with the victim's money and personal information, which can be used for future fraudulent operations or sold on the dark web.

To develop convincing fake websites, scammers use a variety of advanced methods. They frequently employ expired domains with a solid Google reputation to host their fake stores, making them appear more credible in search results. These sites are often constructed with popular e-commerce platforms like as WooCommerce, Zen Cart, or OpenCart, which can be readily altered to look like real businesses. Scammers also construct false social media identities and conduct targeted ads to generate visitors to their websites, which boosts their trustworthiness.

Red flags to watch out for when shopping online include:

• Unrealistically low prices or discounts that seem too good to be true
• Poor website design with low-quality images and obvious spelling or grammatical errors
• Lack of clear contact information, return policies, or privacy policies
• Requests for payment through unusual methods, such as cash or gift cards
• Absence of secure payment options like credit cards
• Limited or suspicious social media presence

Tips for identifying legitimate online stores:

• Carefully examine the URL for any slight misspellings or variations from the official website
• Look for the padlock icon in the address bar, indicating a secure connection
• Use website checkers like UrlVoid.com or Google Transparency Report to verify a site's legitimacy
• Read reviews from multiple sources, such as Trustpilot, to gauge customer experiences
• Verify the presence of trust seals from recognized organizations like the Better Business Bureau
• Keep your browser and antivirus software updated to help detect unsafe sites

Phishing Scams

Phishing scams have become more common, as scammers take advantage of the increased online shopping activity. These scams use deceptive strategies to fool customers into disclosing sensitive information like login passwords, financial information, or personal data. Attackers usually start their attacks with fairly legitimate messages that appear to come from trusted sources, such as retailers or delivery services.

Phishing attempts during major shopping occasions are aimed to generate a sense of urgency or excitement, capitalizing on consumers' desire for great prices. Scammers create messages that resemble legitimate organizations, use familiar branding and language to reduce their targets' guard. They frequently use the time-sensitive nature of Black Friday and Cyber Monday bargains to drive victims into acting quickly and without due diligence.

Types of phishing emails and messages during Black Friday and Cyber Monday include:

• Fake order confirmations or shipping notifications
• Exclusive or early access to Black Friday deals
• Requests for survey participation in exchange for rewards
• Impersonation of trusted brands offering irresistible discounts
• Counterfeit luxury goods at unrealistic prices
• Phony customer service communications

Artificial intelligence has increased the complexity of phishing attempts during these shopping occasions. AI-powered phishing attempts increasingly use advanced technology to generate more convincing personalized information at scale. Large language models are being utilized to create highly authentic, error-free phishing emails that are becoming more difficult to identify from legitimate correspondence. AI also allows attackers to automate the acquisition and curation of personal information from numerous internet sources, which makes spear phishing attempts more targeted and credible.

To protect against phishing attempts during Black Friday and Cyber Monday, shoppers should take the following steps:

• Verify the legitimacy of emails and text messages through official channels before clicking any links
• Be cautious of deals that seem too good to be true
• Check for visual inconsistencies, typos, or errors in URLs of online stores
• Use trusted websites and verify URLs before making purchases
• Enable multi-factor authentication for important accounts
• Avoid saving credit card information in browsers
• Use personal Wi-Fi networks or a VPN for online shopping
• Research unfamiliar retailers and read reviews before making purchases
• Be aware of requests for unusual payment methods like cash or gift cards

Too-Good-To-Be-True Deals

During Black Friday and Cyber Monday, exaggerated discounts are frequently used as a red flag for potential fraud. Legitimate shops often have limits on how far they can lower prices while remaining profitable. Scammers capitalize on the excitement and urgency surrounding major shopping events by providing seemingly unbelievable deals that are, in fact, too good to be true. These offers are intended to instill a sensation of fear of missing out in consumers, causing them to make rash decisions without conducting sufficient research.

Manipulated reference prices are a common tactic used to make deals appear more attractive than they actually are. Some examples include:

• Artificially inflating the original price before applying a discount
• Using a short-lived higher price as a reference point
• Displaying the highest comparison price of competitors rather than the actual original price
• Referencing the manufacturer's suggested retail price instead of recent selling prices
• Creating bundle deals with inflated "original" prices for individual items

Consumers should exercise cautious when researching and verifying authentic deals. It is critical to monitor pricing well in advance of Black Friday and Cyber Monday to build a baseline for comparison. Using price history trackers and comparison websites can provide useful information about an item's pricing patterns over time. These tools can assist shoppers in determining whether a current offer is a good deal or if the item has previously been available at comparable or cheaper costs.

Gift Card Scams

Gift card scams also grow more common, as scammers capitalize on increased consumer activity and need for offers. Fraudulent actions can take many forms, leaving customers out of pocket and unsatisfied.

Various types of gift card fraud include:

• Phishing emails impersonating e-gift cards with malicious links
• Fake websites or phone services claiming to check gift card balances
• Scammers demanding gift cards as payment for goods or services
• Social media ads offering heavily discounted gift cards
• Imposters posing as government officials or law enforcement requesting gift card payments

The risks of buying discounted gift cards from third parties are significant:

• Purchasing fake, stolen, or already used gift cards
• Exposure to potential identity theft or fraud
• Receiving cards with no balance or less than the promised amount
• Difficulty in obtaining refunds or resolving issues with unofficial sellers
• Inadvertently supporting criminal activities by buying stolen cards

Scammers have created advanced techniques for tampering with in-store gift cards. They physically go into stores and record the codes on gift cards on display racks. Some even apply personalized barcode stickers over the actual barcodes. When a customer purchases and activates the card, the scammer promptly drains the balance.

Best practices for purchasing and using gift cards safely include:

• Buy gift cards directly from official retailers or authorized resellers
• Choose cards from the back of the rack in stores to avoid potentially tampered cards
• Inspect the packaging for signs of tampering before purchase
• Avoid buying gift cards from online marketplaces or social media platforms
• Consider sending e-gift cards directly through email or text
• Verify the balance of the card immediately after purchase
• Use the gift card promptly to reduce the risk of it being compromised

Fake Order Confirmations and Delivery Notices

Fake order confirmations and delivery notices are becoming popular throughout the Black Friday and Cyber Monday shopping seasons. These fraudulent communications are intended to take advantage of the increased online shopping activity and anticipation of package arrivals that characterize this period.

In these frauds, cybercriminals send emails, text messages, or even phone calls that look to come from legitimate companies or shipping organizations. These messages frequently state that there is a problem with an order or delivery, requiring the receiver to take immediate action. The purpose is to deceive customers into disclosing sensitive information like login credentials, credit card numbers, or personal information.

Scammers take advantage of the holiday shopping rush by capitalizing on the greater volume of authentic purchase confirmations and shipment alerts that customers expect to receive during this time. They understand that many customers make multiple transactions and may not remember every detail. Because of the pressure of the shopping season, as well as the need to guarantee that gifts arrive on time, people are more prone to respond fast to these fake messages without adequate inspection.

Signs of fraudulent shipping notifications include:

• Generic greetings instead of personalized ones
• Requests for sensitive information like passwords or full credit card numbers
• Urgent language demanding immediate action
• Spelling errors or poor grammar
• Suspicious sender email addresses or phone numbers
• Links that lead to unfamiliar websites
• Attachments that claim to be invoices or tracking information

Tips for safely tracking legitimate orders:

• Go directly to the retailer's website or app to check order status
• Use official tracking numbers provided in legitimate purchase confirmations
• Be cautious of unsolicited communications about orders or deliveries
• Verify the sender's email address or phone number against official company contacts
• Avoid clicking on links or downloading attachments from unexpected messages
• Set up accounts with major shipping carriers to manage deliveries directly
• Use reputable package tracking apps that aggregate information from multiple carriers

Social Media Scams

Social media platforms have become an ideal location for scammers, particularly around the Black Friday and Cyber Monday shopping seasons. The increase in internet shopping activity during this time period provides an ideal chance for fraudsters to defraud shoppers. In 2024, the incidence of social media scams has reached alarming proportions, with AI-driven strategies making these fraudulent operations more advanced and difficult to identify.

The types of social media scams targeting shoppers during Black Friday and Cyber Monday include:

• Fake ads featuring unrealistic deals or counterfeit products
• Phony giveaways demanding processing fees or sensitive information
• Impersonation of legitimate brands or influencers
• QR codes redirecting to malicious websites
• Fake customer support accounts
• Clone websites mimicking reputable retailers

To verify the legitimacy of social media offers, consumers should:

• Research the company thoroughly before making a purchase
• Be skeptical of deep discounts that seem too good to be true
• Inspect the website and social media profiles for inconsistencies or errors
• Check for verified badges on brand profiles
• Avoid scanning random QR codes shared online
• Use secure payment methods like credit cards

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