The cost of a bargain: unpacking purchase scams

The ecommerce revolution has transformed the way we shop, offering a new level of convenience and eliminating the friction of in-store shopping. But, as the digital marketplace grows, it also creates new opportunities for scammers to exploit unsuspecting buyers and sellers.

Fraudsters are constantly adapting their tactics and preying on the uninformed. Staying up-to-date on these schemes is essential in order to keep yourself safe.

In this post, we’ll be unpacking purchase scams, which made up over 60% of authorised fraud on Revolut in 2023–2024. Understanding how these fraudsters work and how to spot them will help you stay one step ahead.

What are purchase scams?

Purchase scams are most common on online marketplaces and social media platforms. These schemes typically involve fake products, misleading advertisements, or websites designed to mimic legitimate retailers. Fraudsters prey on consumers looking for the best deals, especially during sales seasons.

How do they work?

• Fake websites: scammers create counterfeit ecommerce sites that look nearly identical to popular online retailers. These sites list high-demand products at unbeatable prices to lure shoppers in. Once payment is made, the items are never delivered, or the buyer receives a counterfeit or substandard product.
• Social media marketplaces: fraudsters often advertise products on platforms like Facebook Marketplace or Instagram. These ads may showcase items like electronics, clothing, or rare collectables at discounted prices. After payment, the seller disappears without a trace.
• Offers that seem too good to be true: scammers send emails or messages promoting exclusive deals. Clicking on these links leads to phishing websites where your payment details and personal information are stolen.

How do I protect myself?

• Verify the website: double-check the URLs before you enter any personal information. Look for ‘https’ in the web address, rather than ‘http’ – the extra ‘s’ indicates that the website is providing a secure connection. This does not mean a website is completely safe, but it can reduce your chances of making high-risk transactions.
• Research the seller: look up reviews and feedback when buying from unfamiliar websites or individual sellers. A lack of reviews, or overwhelmingly positive (but vague) reviews can be red flags.
• Avoid wire transfers: Make sure you are sending money through reputable payment processors, and where possible use payment methods that offer buyer protection.

Revolut's fraud safety checklist

Ecommerce offers unmatched convenience, but comes with a set of risks. Stay safe and enjoy shopping online by recognising the signs of scams, and taking proactive measures to protect yourself. Remember these key tips to avoid becoming a victim of fraud while using Revolut:

1. Stay informed. Regularly update yourself on emerging scams. Fraudsters constantly adapt their tactics to exploit new vulnerabilities. Our Revolut fraud and scams hub is a great place to start.
2. Be sceptical. Whether it’s a deal that seems too good to be true or an urgent delivery issue, always question the legitimacy of the situation.
3. Use secure payment methods. Choose payment methods that provide buyer protection, and never transfer money directly to strangers. Activate your Revolut single-use virtual card to keep your details hidden and fraudsters out of the loop.
4. Report suspicious activity. If you suspect a scam, report it to Revolut and the platform hosting the fraudulent activity. If you think you may have been the victim of fraud, freeze your card and reach out to us in the app.

The convenience of the online shopping industry is a double-edged sword — scammers exploit shoppers in the hope that they won’t notice the warning signs, turning unsuspecting users into victims of fraud.

Revolut provides you with a host of security controls, proactive warnings, and in-app educational materials to keep you safe and informed in real time. Whether you’re buying or selling online, staying aware of common scams will keep you one step ahead.