The Persistent Threats in E-Commerce

E-commerce scams continue to pose significant challenges for online shoppers and have become a major source of consumer fraud reports handled by the Better Business Bureau. As social media influencers increasingly drive merchandise sales, consumers are advised to exercise heightened vigilance against these sophisticated schemes.

Protecting Against Scams: Insights from Cybersecurity Experts

In Fake Deals, Real Trouble: Cyber Risks in Online Marketplaces, Tracy Goldberg, a cybersecurity director at Javelin Strategy & Research, explores measures online stores can take to safeguard themselves and their customers. “Fifteen years ago, when e-commerce began gaining traction and domain squatting emerged as an issue, there were considerable concerns about brand integrity,” Goldberg noted. “Now, with the broader use of online marketplaces, we’re seeing a resurgence of these issues.”

Social Media: The New Dark Web

As social media has surpassed email as the primary vector for cybercriminals to manipulate consumers into disclosing sensitive personal information, scams have become increasingly prevalent. In 2023, 36% of U.S. victims reported their identity theft or scam initiation through direct messages on social platforms. By 2024, nearly half of those who fell victim to scams cited an unknown friend request as the initial step.

“Social media has rapidly evolved into the new dark web,” Goldberg stated. “Instead of going through the laborious process of stealing credentials and credit card information and selling them on the dark web, cybercriminals can now more easily manipulate consumers directly via social media. They do this by creating fake ads that mimic well-known brands or by watching what social influencers are promoting to capitalize on trending items.”

The Deceptive Tactics of Typo Domains

Larger e-commerce platforms such as Amazon and eBay have become prime targets for scammers. Malicious transactions often start through commonly used social platforms like Facebook Marketplace. Goldberg explained how these scams typically unfold.

“When you browse Facebook Marketplace, click on an ad, and it redirects you to another site,” she said, “often it’s a typo domain. For example, if I think I’m buying a Louis Vuitton product, the link might redirect me to a Louis Vuitton domain with one of the ‘T’s missing.

“These attacks are becoming more sophisticated, and consumers often have a misplaced sense of trust,” Goldberg continued. “If they see an ad through what they believe is a trusted marketplace, how often do we actually check the URL after clicking?”

Steps to Safeguard Your Online Presence

Social media platforms bear responsibility for consumer protection in this scenario, but many are not meeting these obligations. In March 2023, Meta (owners of Facebook and Instagram) introduced Meta Verified, a paid service that supposedly verifies profile authenticity with blue checkmarks. The system is intended to protect users and companies from account takeovers or impersonation. However, Goldberg believes this verification process has fallen short.

“Some of the steps Meta took to authenticate user identities haven’t been robust enough,” she said. “Anyone can post content without thorough vetting.” Many brands are working with firms like BrandShield to monitor and prevent malicious use of their names online.