The Growing Threat of E-Commerce Scams

E-commerce scams continue to pose significant challenges for online shoppers. These fraudulent activities now account for a majority of consumer fraud reports received by the Better Business Bureau. Social media influencers play a crucial role in promoting merchandise, which makes it essential for consumers to exercise extra caution against increasingly sophisticated scams.

Protecting Online Stores and Consumers

Fake Deals, Real Trouble: Cyber Risks in Online Marketplaces, a report by Tracy Goldberg from Javelin Strategy & Research, examines strategies for online stores to safeguard their customers and brand names against such scams. “Fifteen years ago, when e-commerce was gaining momentum and domain squatting became a prevalent concern, there were significant worries about maintaining brand integrity,” Goldberg noted. “Now, with the broader usage of online marketplaces, it’s coming full circle.”

Social Media as a Primary Scam Platform

According to Goldberg, social media has surpassed email as the main channel through which cybercriminals deceive consumers into divulging sensitive personal information and falling for scams. In 2023, 36% of U.S. consumers reported that identity theft or scam victimization originated from direct messages on a social platform. By 2024, nearly half of those who fell victim to scams mentioned that the crime was initiated via unknown connections or friend requests.

“Social media has effectively become a new dark web,” Goldberg stated. “Instead of stealing credentials and credit card information for sale on the dark web, cybercriminals now manipulate consumers directly through social media messages. They’re not just using direct messages; they are also posting fake ads on social media marketplaces.”

Hackers can mimic or spoof well-known brands to advertise products in online marketplaces under those brand names. They often observe what popular social media influencers sell, leveraging current trends to attract attention.

The Peril of Typo Domains

Larger merchants such as Amazon and eBay are frequent targets for malicious sales that start through commonly used platforms like Facebook Marketplace. Goldberg explained how these scams typically work:

“You go to Facebook Marketplace, click on an ad, and it redirects you to another site,” she said. “Often, the site will be a typo domain. For example, if I thought I was buying from Louis Vuitton, but when I clicked the link, the website had one or more of those letters missing.”

These types of attacks are becoming increasingly sophisticated, and consumers often lack the vigilance to scrutinize URLs after clicking links. If they see a link on what appears to be a trusted marketplace, they might not bother checking the domain name closely.

Taking Protective Measures

Social media sites have a responsibility to protect their users from these scams but are often insufficient in doing so. In March 2023, Meta (which owns Facebook and Instagram) launched Meta Verified, a paid service that allows users’ profiles to be verified with blue checkmarks. This service purportedly safeguards against profile account takeover or impersonation by vetting the user posting advertisements on Meta platforms.

“Some steps Meta took to authenticate users have fallen short,” Goldberg said. “Anyone can post ads without much oversight, as long as they pay for verification.”

The issue raises significant concerns about brand integrity not only for the merchants but also for brands that are being spoofed or mimicked. Many companies collaborate with firms like BrandShield to monitor their brands’ usage online and prevent malicious activities.

Consumers may need repeated reminders that they should verify the URLs of sites they visit, especially if they think these sites come from trusted marketplaces.

Banks Respond to the Threat

In March 2025, Chase Bank halted peer-to-peer payments over Zelle through social media interactions after identifying a high volume of fraud originating from such platforms. According to Goldberg, “Chase’s decision is smart. They have a large customer base and need to protect them effectively. By the end of summer 2025, other top-tier banks may follow suit.”

These actions highlight the evolving challenges in balancing security with customer satisfaction as social media evolves into a primary sales channel.