Protecting Yourself from Scams by Third-Party Sellers – NerdWallet

The digital age has brought with it the convenience of online shopping, allowing consumers to purchase almost anything from the comfort of their homes. However, this convenience also comes with its pitfalls, chief among them being the risk of falling victim to online scams. When navigating through online markets like Amazon, Etsy, and Walmart, which host countless third-party sellers, the challenge isn’t just about what to buy or how much to spend—it’s also crucial to
be vigilant against scams
that are all too common on such platforms.

Take the cautionary tale of Derrek Casebolt, for instance, who believed he had found an exceptional deal on a gaming controller and headphones bundle, priced around $170, for just about $100 on the Walmart app. However, the excitement soon turned to dismay for Casebolt, a dedicated UPS employee in the bustling Fresno, California, area. Shortly after placing his order, he received a tracking number that raised immediate suspicion. “I saw the number, and I was like, ‘That’s not right.’ It was an immediate red flag,” recalls Casebolt. A closer inspection of the order details revealed that the seller had craftily used a name mimicking that of a legitimate company, albeit with a slight misspelling—a common tactic employed by scammers to deceive. Casebolt’s attempts to contact the seller were in vain, and upon realizing he had been scammed, he didn’t hesitate to alert Walmart. Unfortunately, the retailer’s response left much to be desired, offering little in the way of assistance and directing him instead to his bank. Fortunately, Casebolt’s bank was able to rectify the situation by removing the charge.

Scams targeting online shoppers are more widespread than most might think. A revealing study by TransUnion in the second quarter of 2024 highlights the gravity of the situation. Among the 40% of consumers surveyed who reported being targeted by fraud through online, email, phone calls, or text messages, an alarming 18% had encountered third-party seller scams on legitimate e-commerce sites.

While the vast majority of third-party sellers operate legitimate businesses, offering genuine products through well-known marketplaces, a small but significant number are scammers intent on exploiting unsuspecting buyers. These fraudulent sellers employ a variety of tricks and tactics to scam customers, from selling counterfeit or defective products at too-good-to-be-true prices to providing fake tracking numbers, refusing reasonable return requests, or even urging payment outside the secure payment systems of the marketplace platforms. Awareness of these practices is the first step toward safeguarding oneself against potential scams.

Before making a purchase, it’s crucial to vet the seller thoroughly. While it may not always be immediately apparent that a product is listed by a third-party seller and not the marketplace itself, careful examination of the product page and seller credentials can reveal important information. Marketplaces like Amazon, for example, clearly indicate whether an item is “sold by Amazon.com” or by another seller. Likewise, Target marks items from third-party sellers, known as Target Plus Partners, with a “sold and shipped by” tag, followed by the seller’s name. These listings often include links to detailed seller information, such as return policies and contact information, enabling buyers to make informed decisions.

Verification tools like the
Better Business Bureau’s Scam Tracker database
, as well as simply conducting a Google search for the item or company name with keywords such as “scam” or “fake”, can provide further reassurance or serve as a red flag about a seller’s legitimacy.

An item’s overall rating can be deceiving. To get a true sense of a product’s quality, potential buyers should invest time in reading through both positive and negative reviews. This approach can uncover recurring issues with the product, seller, or shipping process. However, due diligence is necessary as some reviews may not be genuine. The increase in paid or incentivized reviews means that an overly positive review may not always present an accurate picture of the product or seller. Tools such as Fakespot can be invaluable in this scenario, helping to differentiate genuine reviews from those that may be misleading. Additionally, if reviews or customer images seem unrelated to the product in question, this inconsistency can be a significant warning sign that the listing may not be trustworthy.

Understanding a marketplace’s policies regarding third-party sellers is essential. Many online retailers, including giants like Etsy and Amazon, have put robust protections in place for buyers dealing with third-party transactions. Typically, these policies ensure that buyers receive a refund if an item never arrives or is significantly different from what was described.

One of the safest payment methods for online shopping is through credit cards, thanks to the consumer protections they offer. In the event of a dispute, charges can be contested within a 60-day window after they appear on a billing statement, providing a potential safety net for consumers who find themselves dealing with uncooperative sellers or facing fraudulent charges.

Keeping detailed records of all transactions, including product descriptions, return and refund policies, and any communication with the seller, can prove invaluable in resolving any potential disputes with a retailer or credit card issuer.

In the face of rising online fraud, taking proactive steps to protect one’s personal and financial information is more important than ever. Freezing your credit is a straightforward measure that significantly limits access to your credit reports, making it far more difficult for identity thieves to open new accounts in your name, even if they have managed to obtain some of your personal information.

For those who value peace of mind and the security of their financial profile, freezing credit can be a wise precaution. Coupled with vigilant monitoring of credit reports and account statements, individuals can build a robust defense against the potentially devastating impacts of identity theft and fraud.

Navigating the vast landscape of online shopping can be fraught with risks, but armed with knowledge and the right preventative measures, shoppers can significantly reduce their exposure to scams. As the digital marketplace continues to evolve, staying informed and vigilant is the best defense against those seeking to exploit the unwary consumer. For more insights and the latest analysis on protecting yourself while navigating the digital world, visit DeFi Daily News.