E-commerce scams continue to plague online shoppers, now accounting for the majority of consumer fraud reports handled by the Better Business Bureau. Social media influencers play a significant role in selling merchandise online, making consumers more vulnerable to these sophisticated scams.

Analysis of Online Scams

In their research titled Fake Deals, Real Trouble: Cyber Risks in Online Marketplaces, Tracy Goldberg, Director of Cybersecurity at Javelin Strategy & Research, examines how online stores can protect themselves and their customers from such scams. “Fifteen years ago, when e-commerce was becoming more mainstream and domain squatting was a growing concern, there were significant worries about brand integrity,” Goldberg noted. “Now, with the broader use of online marketplaces, we are seeing this issue resurface.”

The Rise of Social Media Scams

Since 2023, social media has surpassed email as the primary channel for cybercriminals to engage in social engineering and trick consumers into revealing sensitive personal information. In 2023, 36% of U.S. consumers reported that their identity theft or scam victimization originated from direct communications or messages through a social platform. By 2024, nearly half of the victims reported that scams were initiated via friend requests and interactions with unknown personas.

“Social media has quickly become the new dark web,” Goldberg said. “Cybercriminals are finding it easier to manipulate consumers directly rather than stealing credentials and credit card information for sale on the dark web.” These scammers often create fake ads or mimic well-known brands by tracking what social influencers are selling.

The Role of Typosquatting

According to Goldberg, larger merchants like Amazon and eBay frequently face scams through common social platforms such as Facebook Marketplace. Scammers use typo domains, where a minor mistake in the URL can lead consumers to malicious sites. For instance, clicking on a Louis Vuitton ad might redirect to a site with a missing T in the domain name.

These sophisticated attacks make consumers feel secure when they see a familiar brand name through a trusted marketplace link. “If we click a link that seems legitimate and don’t verify the domain, it’s easy for cybercriminals to steal our credit card information or PII in one step,” she added.

Protective Measures

Social media platforms have obligations to protect their users but are not always effective. In March 2023, Meta introduced Meta Verified as a paid service to authenticate user profiles with blue checkmarks. The program aims to prevent profile account takeover or impersonation, though critics argue that the process is too lenient.

Goldberg pointed out that many scam advertisements are posted without proper vetting, meaning anyone can sell on these platforms. This has raised concerns about brand integrity and the legitimacy of online purchases.

Banks Respond to Scams

In March 2025, Chase Bank halted peer-to-peer payments through the Zelle network when initiated from social media interactions after noting a high volume of fraud reports related to such transactions. This step was taken because most of these scams originate on social media platforms.

Other financial institutions may follow suit as they navigate between protecting customers and maintaining customer satisfaction amidst evolving social media shopping preferences, particularly among younger users. Although younger consumers are at the highest risk, Goldberg believes it is a wise move by Chase to prioritize their safety.