Cyber Monday expected to set new sales record

Buyers beware: Retail fraud losses rise, Better Business Bureau says

The Better Business Bureau says online fraud losses across North America may hit more than $360M.

Marketing experts predict Cyber Monday will set a new record for sales. Adobe Analytics predicted spending may reach $11.6 billion. 

Retailers aren't the only ones looking to cash in, the Better Business Bureau said online retail fraud losses across North America may hit more than $360 million in 2022. So, buyers beware when shopping online.

Doug Bowman, Professor of Marketing at Emory University's Goizueta Business School, said while some consumers may be wary of spending due to concerns regarding the economy, spending is still happening and likely breaking records.

"I think what we’re seeing is people being concerned about inflation, thinking maybe prices will continue to go up," said Bowman. "And a combination of last’s years stock outs has caused people to sort of buy now and act early."

The BBB warns nearly 36% of online retail fraud reports are from fake websites and 40% from email and social media.

Jon Powell, Cybersecurity Practice Leader at Moore Colson, said it is easy for scammers to impersonate legitimate companies in text and email promotions. 

"You get that coupon code, or message saying, 'hey, we’re having a sale', 'join now,' just go straight to the website itself. You can use the browser on your phone but just do not click the link, ever," stressed Powell.

Powell recommends using credit card backed payment solutions during all checkouts.

"If you accidentally get duped or click on something you shouldn’t or accidentally give your credit card number, you’ll be indemnified by a credit card company because they’re going to be fighting to get their money," said Powell.

BBB recommendations for researching online retail sellers: 

• Check BBB.org for BBB Business Profiles and consumer reviews.
• Search for online reviews.
• Look at Scamadviser.com to learn how long a website has been in operation. A recently created website may be a red flag. 
• Review the website's URL for misspellings or other errors.
• Examine the URL with Google's Transparency Report tool.
• Use a map app to verify the business's address.
• Remember the adage: If a price is too good to be true, it probably is.
• Make sure you can pay by credit card, which offers the most protection against loss.
• Treat a social media or email ad with suspicion until you have investigated the company behind it.