Refund scam

Online shopping has made life easier, but it has also given rise to various scams that target unsuspecting buyers. Fraudsters set up fake e-commerce websites or trick people with refund scams, leading to financial losses and identity theft. In this blog, we’ll explore these scams, how they work, and how you can stay protected.

Mohit Tejwani

3/31/20252 min read

1. Fake E-Commerce Websites

Scammers create fake online stores that look just like real shopping websites. These sites often advertise unbelievably low prices on popular products to lure victims into making purchases.

How Fake E-Commerce Scams Work:

Fraudsters create professional-looking fake websites with copied logos and designs from real brands.
They advertise heavily on social media and other platforms, offering massive discounts.
Buyers place orders and make payments, but never receive their items.
The scammer either disappears or provides fake tracking numbers.
In some cases, victims receive counterfeit or low-quality products instead of what was advertised.

Red Flags to Watch For:

Prices that seem too good to be true.
No clear contact details or only email support.
Poor website design, grammatical errors, and inconsistent branding.
Limited payment options, such as only bank transfers or cryptocurrency.
No customer reviews or fake reviews copied from other sites.

How to Stay Safe:

Always research a website before making a purchase.
Look for customer reviews on independent platforms like Trustpilot or social media.
Check the URL—fraudulent sites may have slight misspellings of real brand names.
Use secure payment methods like credit cards or PayPal, which offer buyer protection.
If something seems suspicious, avoid purchasing and report the site.

2. Refund Scams

In refund scams, fraudsters pose as customer service agents and trick victims into sending them money instead of processing a refund.

How Refund Scams Work:

Victims receive an email, call, or text claiming there was a problem with a recent purchase.
Scammers offer a refund and ask for bank details, login credentials, or remote access to the victim’s device.
They trick victims into entering excess amounts in refund forms and then demand repayment of the “overpaid” amount.
In some cases, they ask for gift card payments as “refund fees.”

Red Flags to Watch For:

Unsolicited refund messages from unknown numbers or emails.
Requests for remote access to your device.
Claims that a refund was accidentally overpaid and needs to be sent back.
Urgency tactics, pressuring you to act quickly.

How to Stay Safe:

Only request refunds through official brand websites and their verified customer service.
Never provide banking details or passwords over the phone or email.
Do not allow remote access to your computer or phone unless dealing with a legitimate service provider.
Verify refund claims by contacting the retailer’s official support.
Report and block suspicious refund requests immediately.