Digital technologies have changed the people’s buying behavior. Online stores, social network pages and marketplaces, apps etc. due to their ease and time saving advantages have surpassed the traditional physical stores.

But one thing that has also risen is the scams and poor security. Maybe you haven’t noticed, but, as you are on the hunt for the best deals on networks, behind the screen there are also scammers hiding in fake merchant pages, on the hunt for victims to steal their money.

This article teaches you how to identify fraudulent online businesses or scam risks when shopping on Facebook, Instagram or any other social network.

How to identify a fraudulent business?

Before making purchases and payments to any merchant on social networks, check that they are legitimate with these six steps.

(1) Doubt the little interaction: Customers will leave positive or negative comments about the quality of care and products. Turn on the alarms, if you see many negative opinions, if the comments always come from the same users and the number of comments are too less. Scammers get interaction only from a small circle to look like a legitimate business.

(2) Be wary of staggering discounts: Especially on merchandise that you know has a much higher commercial cost such as video game consoles or televisions. If you compare prices and the item you are being offered has a huge and tempting discount, be suspicious of the seller or the store.

(3) Be suspicious of insistence to make a purchase: No store will insist you to make a purchase in a hurry. Normally, they will present you with options, tell you about stock, promotions or prepare a quote.

(4) Doubt accounts or profiles without information: Does it have a logo, where is it located, what are its ratings, does it have a customer service in case you have problems with your purchase?

If you can answer these questions, you have the green light to continue shopping.

How to avoid falling into the trap of a social media scam?

The interest in buying the item you were looking for can make you overlook the red flags. So, here are the tips to keep in mind to avoid falling into scams and buy safely:

(1) Research the establishment: Ask acquaintances or in social networking groups if anyone knows the seller or the store. You will most likely find people who have bought from the same establishment or, instead, they will recommend a more trustworthy one.

(2) Search for the business on Google or social networks: This will help you provide information on previous scams or comments against the business from where you’re going to make a purchase.

(3) Find out about the purchase process: Ask as many questions as you need to clear up doubts about the purchase and delivery process. If the answer is confusing and generates doubts, it is better not to continue.

(4) Ask them to send you a video or photograph of the item: A serious establishment will not refuse to send you a sample of the item you are interested in, so that you can verify if it is what you need. If they send you a generic photo downloaded from the Internet, be suspicious and do not proceed.

(5) Avoid buying very expensive items: If you are going to buy an electronic item that costs a lot, it is recommended you to do it directly on the official website of the brand or buy it in person. Cyber-scammers take advantage of the fact that these items are highly valued to offer them with home delivery at tempting costs.

(6) Never make full payments: It is best to choose to pay for the item once you have received it. If this is not possible, pay only half the value at the beginning of the purchase process and the rest when you check that the item has been shipped and received by you.

(7) Don’t be in unsafe places: Legitimate establishments will ask you for your address or delivery address to send your item. If you choose to pick up your purchase, they will send you the exact location of the store. Never agree to meet at shopping malls, gas stations or public transportation stations.

(8) Don’t close yourself to the possibilities: For sure, the item you are interested in can be found in several online stores. If you doubt one, check another and wait a while. Your recent searches, thanks to the browsing cookies you leave on the Internet, will gradually bring up ads related to what you want to buy, so in the end you will get a handful of additional and possibly safer options to choose from.

What to do if you have already been a victim of a scam?

While it’s frustrating if you’ve been victimized by a criminal. However, you have options to take action against the person or persons behind the scam.

• Facebook Marketplace: If you buy on Facebook’s marketplace, you can report the seller. In the social network’s help service, you will find the steps you need to follow to do so.
• Store on Instagram: If you bought from an establishment that you found through an ad on Instagram, you can use the guide offered by this network to report both the seller and the product for being fraudulent or misleading.
• Bank transfer: If you paid by bank transfer, you can write a direct message to the bank. By filing a case, an internal alert is raised about the misuse of the account and an inquiry is made with the account holder.
• Report the case: Report a case to cyber crime department of your country.

Hi, I am Nikesh Mehta, owner and writer of this site. I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at [email protected].