E-commerce scams continue to plague online shoppers and now account for the majority of consumer fraud reports received by the Better Business Bureau. With social media influencers playing a significant role in promoting merchandise online, consumers are advised to exercise extra caution against these increasingly sophisticated scams.

According to a study titled Fake Deals, Real Trouble: Cyber Risks in Online Marketplaces, Director of Cybersecurity at Javelin Strategy & Research, Tracy Goldberg, examines strategies for protecting both online stores and their customers. “Fifteen years ago, when e-commerce was becoming more mainstream and domain squatting was a growing concern, there was significant worry about brand integrity,” Goldberg stated. “With the broader adoption of these marketplaces, it feels like we are coming full circle.”

The New Dark Web

Online scams have shifted to social media platforms as the primary method for cybercriminals to exploit consumers and perpetrate identity theft or other fraudulent activities. In 2023, 36% of U.S. consumers reported that their identity theft or scam experiences began via direct communications on a social platform. By 2024, nearly 50% of victims cited such scams originating from unfamiliar friend requests or connections through social media.

“Social media has quickly transformed into the new dark web,” Goldberg asserted. “Rather than engaging in the complex process of stealing credentials and credit card information before selling it on the dark web, cybercriminals are finding it easier to manipulate consumers directly via social media. This isn’t limited to direct messages; they also post fake ads on social media marketplaces.”

Hackers can mimic or spoof well-known brands, advertising items under their names in these marketplace listings based on what influencers are selling. When a consumer clicks an ad that appears legitimate but is actually malicious, they willingly provide credit card information and personal data, avoiding the hassle of social engineering.

The Scourge of Typo Domains

Larger merchants like Amazon and eBay have become prime targets for these scams, often initiated through widely used social platforms such as Facebook Marketplace. Goldberg explained that when consumers click on an ad, it redirects them to another site which is likely a typo domain. For example, if they believe they are buying a Louis Vuitton bag, the domain might be incorrect, with one of the ‘T’s missing.

“These types of attacks have grown more sophisticated,” Goldberg noted. “Consumers often have a false sense of trust; how often do we really check the domain name after clicking on a link from what we believe to be a trusted marketplace?”

Taking Protective Steps

Social media sites have an obligation to protect their users but are not always meeting these responsibilities. In March 2023, Meta, which owns Facebook and Instagram, launched the Meta Verified program, offering blue checkmarks for verified profiles at a monthly fee. This service aims to prevent profile account takeovers or impersonations but has been criticized for its lack of thorough user vetting.

“Some steps Meta has put in place to verify users have fallen short,” Goldberg said. “Anyone can post anything on these platforms as long as they pay the verification fee.”

The implications for brand integrity are significant, both for the merchants and the brands being spoofed or mimicked. Many companies collaborate with firms like BrandShield to monitor web activity for malicious uses of their brand names.

However, consumers may not be sufficiently aware of these risks. Unless stores make it clear that they might be malicious sites, shoppers are unlikely to scrutinize domain names thoroughly before making purchases.

Banks Are Taking Action

In March 2025, Chase Bank suspended peer-to-peer payments over the Zelle network initiated from social media platforms. The move followed observations of nearly half of fraud reports stemming from interactions and real-time transactions on these social networks. Other financial institutions are likely to follow suit as they balance maintaining customer satisfaction with ensuring security in an environment where younger users increasingly favor social media marketplaces.

“This is a wise decision,” Goldberg stated. “By the end of summer, we may see top-tier institutions implement similar measures for their customers’ safety.”