Online shopping scams, a significant concern for consumers, now account for most fraud reports handled by the Better Business Bureau. Social media influencers play a critical role in online sales, prompting shoppers to exercise extra caution against sophisticated scams.

In Fake Deals, Real Trouble: Cyber Risks in Online Marketplaces, Tracy Goldberg, Director of Cybersecurity at Javelin Strategy & Research, explores how online retailers can protect their customers and brands from such scams. “Fifteen years ago, when e-commerce was gaining traction, we were concerned about brand integrity,” Goldberg notes. “Today, with the widespread use of online marketplaces, it’s coming full circle.”

Emergence of Social Media Scams

Email has been overtaken by social media as a primary tool for cybercriminals to exploit consumers and perpetrate scams. In 2023, 36% of U.S. victims reported that their identity theft or scam began through a direct message on a social platform. By 2024, nearly half of those who fell victim said the crime started with an unfamiliar request from someone they didn’t know.

Goldberg comments, “Social media has evolved into what I call the new dark web. Cybercriminals can bypass the complexity of selling credentials and credit card information on the dark web by directly targeting consumers through social platforms.” Scammers create fake ads mimicking well-known brands to lure unsuspecting shoppers into clicking malicious links.

Hackers watch social media influencers’ postings, then emulate popular items being sold online. When a consumer clicks an ad that appears harmless, they unwittingly provide credit card information and personal data, which the criminals can use immediately without the hassle of selling on the dark web.

The Threat of Typo Domains

Bigger retailers like Amazon and eBay are frequent targets for these scams. Many fraudulent transactions originate from familiar social platforms like Facebook Marketplace. Goldberg explains how these scams work: “You navigate to a listing, click an ad, which redirects you to another site. Often, the destination domain is misspelled—like a typo in Louis Vuitton’s name.” Consumers often lack the vigilance to verify such sites before providing sensitive information.

These sophisticated attacks create significant concerns for both merchants and brands. Companies are increasingly turning to services like BrandShield to monitor their names online, but consumers remain vulnerable if they aren’t reminded about potential threats.

Banks Respond with Caution

In March 2025, Chase Bank halted its customers from making peer-to-peer payments through the Zelle network if initiated via social media. This move was taken after observing that nearly half of fraud reports came from interactions on social media platforms. Other financial institutions are expected to follow suit, balancing safety concerns with maintaining customer satisfaction as social media purchasing habits continue to grow, particularly among younger consumers.

Goldberg believes this action is a prudent step. “By the end of summer, we might see other major banks adopt similar measures. It’s not just about protecting customers; it also serves in the bank’s interest to keep them safe.”