Online Purchase

Scams Report
2020
 Introduction
In March 2020, BBB Institute for Marketplace Trust (BBB Institute) released the 2019 BBB
Scam Tracker Risk Report, announcing that online purchase scams were among the top
three riskiest scams for the third year in a row. Only weeks after the release of the report,
the COVID-19 pandemic forced businesses to close and people to begin social distancing.
Consumers increased their online presence, prompting us to launch a new research project
to better understand how online purchase scams are being perpetrated, who is being
targeted, the overall impact of these scams, and how we can help people avoid losing money
to them. This research paper is based on two sets of data: 1) An analysis of approximately
41,000 online purchase scam reports submitted to BBB Scam TrackerSM between 2015 and
September 2020, and 2) new survey research conducted in 2020 targeted at those who
reported online purchase scams.1

What Is an Online Purchase Scam?

Online purchase scams typically involve the purchase of products and/or services where the
transaction occurs via a website or other online means. Scammers utilize online technology
to offer attractive deals, but once the payment is made no product or service is delivered.
In another version, fraudsters pretend to purchase an item by sending a fake check and
then asking for a refund of the "accidental" overpayment; by the time the victim
realizes the check is bad they’ve already sent the funds from their account.

Overall Impact of Online Purchase Scams

Online purchase scams were among the top three riskiest scams in 2017, 2018, and 2019,
according to the BBB Risk Index—a multidimensional approach to evaluating scam risk that
considers three dimensions: exposure (prevalence of a scam type), susceptibility (the likelihood of
losing money when exposed to a scam type), and monetary loss (the median dollar loss reported
for a particular scam type). So far in 2020, 37.9 percent of all reports to BBB Scam Tracker were
online purchase scams, up from 24.3 percent in 2019. A staggering 80.5 percent of consumers
reporting online purchase scams in 2020 lost money, a steady rise from 71.2 percent in 2015,
when we began collecting data. The median dollar loss for this scam was up in 2020 ($93)
from 2019 ($76), but down from 2015 ($110) (Figure 1).

Conducted from August 11, 2020 to August 20, 2020 with 1,549 responses from people who reported
1

online purchase scams to BBB Scam Tracker. Margin of error of +/- 2 percent at 95 percent confidence level.

2 BBB.org/ScamTracker | 2020 ONLINE PURCHASE SCAMS REPORT

We have witnessed significant change in this scam type In 2015, these scam types
during the past few years. The majority of scams reported comprised just 13 percent
to BBB Scam Tracker resulting in a monetary loss are from
of all scams reported with
online purchases. In 2015, these scam types comprised just
13 percent of all scams reported with a monetary loss; in
a monetary loss; in 2020,
2020, they comprise a whopping 64 percent. they comprise a whopping
64 percent.

FIGURE 1

Susceptibility, Exposure, and Monetary Loss by Year

for Online Purchase Scams

Figure 1: Susceptibility and Exposure by Year (on a 100%Scale)

2015 2016 2017 2018 2019 2020

100 100%

81. 2% 80. 5%

80 71. 2%
74 .1% 72 . 5%
75. 2%

Susceptibility

60
37.9%
40
24 . 3%
20.6%

20 8 .4% 9.7%
2 . 8%
Exposure
0 0%

Figure 1: Monetary Loss by Year (on a $200 Scale)

2015 2016 2017 2018 2019 2020

$200

$110
$101 $100
Median $ Loss $93
$75 $76

$0

BBB.org/ScamTracker | 2020 ONLINE PURCHASE SCAMS REPORT 3

 How Scammers Engaged with Their Targets
Whether or not a consumer was actively shopping for a product versus passively browsing
appears to have an impact on victimization. Sixty-three percent of survey respondents were
actively searching for a product when they lost money to an online purchase scam. Twenty-two
percent of those who lost money were passively searching while 15 percent were not looking at
all (Figure 2). The top online platforms where consumers who lost money to an online purchase
scam first learned about the product include: Facebook (30 percent), Google (28 percent),
a specific website (17 percent), and Instagram (9 percent) (Figure 3).

Fig. 2 Actively Shopping Versus Passively Browsing

FIGURE 2 100

Actively Shopping
80 Versus Passively Browsing

63%
People who were
60 passively searching
50%
or not searching at
40 all were less likely
26% to lose money than
22% 24%
LOST $ 20 15% those who were
actively searching
NO LOSS
0 for products/
Actively Passively Not Not
services.
Actively Passively
Looking
Looking
Looking
Looking
Looking
Looking

FIGURE 3

Top Online Platforms Reported by Consumers Who Lost Money

Where did you first see the product advertised?

All Consumers Who Were Consumers Who Were Passively

Consumers Actively Searching Searching or Not Searching

1 Facebook 30% Google 40% Facebook 50%

2 Google 28% Direct to a Website 23% Instagram 15%

3 Direct to a Website 17% Facebook 18% Google 8%

4 Instagram 9% Instagram 5% Direct to a Website 6%

5 Email 2% Craigslist 2% Email 3%

Please note that the sum is not 100 percent as there are other places people saw the product advertised.

4 BBB.org/ScamTracker | 2020 ONLINE PURCHASE SCAMS REPORT

Payment Type and Loss
Credit cards (35%) were the most common payment method used for online purchase scams,
followed by PayPal (23%), bank account debit (20%), Zelle (7%), and prepaid card (3%). Those
who paid with PayPal or credit card were less likely to lose money (Figure 4). Those who paid with
bank account debit and prepaid card or Zelle were more likely to lose money.

FIGURE 4

% of Consumers Who Lost $ Versus % Who Did Not Lose $

to an Online Purchase Scam by Payment Type

% WHO % WHO DID

LOST $
Figure 4: % Comparison: Consumers who lost $ and did not get it back vs got it back NOT LOSE $

Credit Card 70% 30% Those who

paid with
PayPal 74% 26%
credit card or
Bank Account
Debit
86% 14% PayPal were
less likely to
Prepaid Card 97% 3%
lose money.
Zelle 97% 3%

0 20 40 60 80 100

Shipment Tracking Information

According to our survey, 59 percent
reported receiving shipment tracking
Consumers Receive
information after making the Packages They Didn’t
purchase. Of those receiving shipment Order in ‘Brushing Scams’
information, 54 percent reported that Did you receive merchandise you
the tracking information was fake. didn’t order? Consumers should be
aware of brushing scams. In these
For the other 46 percent, the tracking
scams, fraudsters seek to make it
seemed real or they did not check it. appear as though you wrote a glowing
online review of their product, and
Efforts to Contact the Seller that you are a verified buyer of that
merchandise. This means they could
Victims of online purchase scams lost
have your personal information. A
time as well as money: 62 percent common example of products used
attempted to contact the seller more for these scams are “mystery seeds”
than three times, 25 percent reached or ping pong balls because they are
light and cheap to mail.
out two to three times, 4 percent
reached out once, and 9 percent
did not reach out.

BBB.org/ScamTracker | 2020 ONLINE PURCHASE SCAMS REPORT 5

 Factors Leading to Monetary Loss
Of those who lost money to an online purchase scam, 73 percent paid for a product and/or
service and never received it. Others who fell for this scam type received an item different than the
one that was promoted and could not get a refund (15 percent), had their credit card information
stolen (1 percent), and reported other issues (11 percent) such as overcharges, extra fees, "free"
trial offers, recurring charges, and returned products with no refund (Figure 5).

The top reason victims purchased a product and lost money was sales price (Figure 6). Scammers
succeed by offering products consumers want at significantly reduced prices. Following COVID-19,
the second biggest motivating factor became the availability of items, which was likely related
to products that suddenly became difficult to acquire such as masks, wipes, and toilet paper.
Motivations varied by type of product; pictures on the website were the number one motivator for
purchases of pets or clothing/accessories and the number two motivator for purchases of motor
vehicles. Free trial offers were the primary motivation for skin care and medical/nutrition products.

According to the survey, 53 percent did not realize they were

FIGURE 5
experiencing a scam until they did not receive the purchased
product. Eight percent said they figured out it was a scam
How Victims when they were charged more than they were told, six percent
Were Scammed
when the item they received did not match the product
description, and five percent when they were unable to
return the product for a refund. Only two percent said
73%
Paid and didn’t they knew immediately they had been scammed.
receive the product.

FIGURE 6

15%
Received an
item different than Motivating Factors for Those Who Lost Money
described and could Pre- and Since COVID
Figure 6: Motivating Factors Pre- and Post- COVID (on a 100% Scale)
not get a refund.

Sales 32%
Price 34%

1% Pictures 18%
Had their credit card
on Website 14%
information stolen.

Availability 10%
of Item(s) 18%

11%
Other (e.g., 10% Pre-COVID
Advertisement
overcharged; kept 8% Since COVID
charging credit card;
returned product 6%
Testimonials
not refunded; "free" 7% Please note that
or Reviews
trial offers; charged the sum is not 100
without order). percent as there are
Urgent 4% other factors that
Need 8% are not included here.

0 20 40 60 80
6 BBB.org/ScamTracker | 2020 ONLINE PURCHASE SCAMS REPORT
Increased Exposure & Risk Following COVID-19
According to our survey research, consumers increased their frequency of online purchasing
following the outbreak of COVID-19. The number of people shopping weekly increased from
29 percent pre-COVID to 37 percent since COVID. Those who shopped almost daily increased
from 10 percent pre-COVID to 17 percent since COVID. Thirty percent of survey respondents
who were targeted after COVID-19 said they were purchasing online versus in-person due to
pandemic-related reasons. Those purchasing online due to COVID were more likely to lose
money (83 percent) compared to those who were not (77 percent).

FIGURE 7

% of Consumers Who Lost $ Shopping Online

Due to COVID versus Not Due to COVID

83%
Lost $
Shopping Online
Due
to COVID

VS

77%
Lost $
Shopping Online
NOT Due
to COVID

BBB.org/ScamTracker | 2020 ONLINE PURCHASE SCAMS REPORT 7

 Risk by Product Type
Though scammers utilize a wide variety of products to perpetrate their scams, certain product
types appear to be riskier than others. The riskiest product category by far appears to be pets
and pet supplies. During our five years of collecting data via BBB Scam Tracker, 25.2 percent of
all reported online purchase scams were related to pets and pet supplies with a median dollar
loss of $660. Motor vehicle (including parts) and medical/nutrition (including masks) products
were the second and third riskiest product categories overall.

FIGURE 8

Riskiest Product Categories Overall

The riskiest product
RANK CATEGORY RISK INDEX SCORE category by far was
$ Loss % Exposure
Fig. 8 Riskiest Product Categories Overall (Risk Index Scores)
% Susceptibility pets and pet supplies.

Petsand
Pets and 25.2%
1 PetSupplies
Pet Supplies $660 67.2%

MotorVehicles
Motor Vehicles 8.6%
2 (includes parts) $395 43.2%

Medical/ 6.6%
3 Clothing
Nutrition $116 83.2%

Medical/
Clothing/ 13.0%
4 Nutrition
Accessories $50 90.6%

Skin Care 3.3%

5 Skin Care $179 84.1%

Digital Devices 6.5%

6 Digital
(e.g., computer,
Devices
$86 75.4%
phone)

3.7%
7 Footwear
Footwear $79 86.9%

Linens 3.7%
8 Linens $69 93.2%

Fitness/ 2.4%
9 Fitness
Sporting Goods $90 82.8%

Hobbies/Toys/ 2.9%
10 Hobbies
Collectibles $64 87.4%

0 20 40 60 80 100
8 BBB.org/ScamTracker | 2020 ONLINE PURCHASE SCAMS REPORT
Risk of Online Purchase Scams Rises During Holiday Season
Scammers vary the product categories they use to perpetrate scams throughout the year based
on consumer behavior patterns. The risk of online purchase scams rises around the holidays with
more people making online purchases and with scammers paying close attention to the most
popular items. According to our analysis, there was an increase in exposure during the holidays
of the following product categories: linens, information/media, skin and hair care, hobbies/toys/
collectibles, footwear/shoes, home decorations, jewelry, motor vehicles, clothing/accessories
and digital devices.

Impact of COVID-19
on Products Used for Scams
In 2020, pet/pet supplies and
medical/nutrition products
(including masks) rose to
become the riskiest product
categories. This shift was
likely related to the COVID-19
pandemic and the increased
attempt by scammers to
use COVID-related products
to perpetrate scams. Other
Are Free Trials Really Free?
product categories rising in
Medical/nutrition and skin care
risk following COVID-19 were
products are often offered via so
household supplies, fitness/ called free-trial offers. These offers
sporting goods, swimming come with fine print buried on the
pool items, firearms/weapons, order page or behind a link that
gives consumers only a short period
furniture, hair care, food,
of time to receive, evaluate, and
hobbies/toys/collectibles, return the product to avoid being
home appliances, and charged. In addition, the same
lawn/garden. hidden information may state that
by accepting the free trial offer, the
consumer is signing up for monthly
shipments of the products and that
Among other notable fees will be charged to their credit
product categories card. It’s often difficult to contact
the seller to stop recurring charges,
rising in risk following halt shipments, and get refunds. 2
COVID-19 were
household supplies
and fitness/sporting
goods.

BBB issued a full report about free trial offers in 2018: Subscription Traps and Deceptive Free Trials Scam Millions with
2

Misleading Ads and Fake Celebrity Endorsements, BBB International Investigation Committee.

BBB.org/ScamTracker | 2020 ONLINE PURCHASE SCAMS REPORT 9

 Overall Impact on Demographic Groups
Age
Exposure, susceptibility, and monetary loss for online purchase scams (Figure 9) varies by age.
Those ages 35 to 44 are most at risk of losing money to online purchase scams, while younger
consumers are more susceptible than older adults. However, older adults lose significantly more
money than young adults when they fall prey to online purchase scams. This is in line with findings
across all scam types.

FIGURE 9

Susceptibility, Exposure, and Monetary Loss by Age

for Online Purchase Scams (2015 to 2020)

Figure 1: Susceptibility and Exposure by AGE(on a 100%Scale)

18–24 25–34 35–44 45–54 55–64 65+

100 100%

83. 2%
81.1% 81. 2%
Susceptibility 77.9% 76.6%
80 73.4%

60

40
21. 5% 22 .7%
20. 2%
15.9%
20 10. 2% 9. 5%
Exposure

0 0%

Figure 9b: Monetary Loss by Age (on a $200 Scale)

18–24 25–34 35–44 45–54 55–64 65+

$200

$119

$94 $99
$85
$75
$68
Median $ Loss

$0

10 BBB.org/ScamTracker | 2020 ONLINE PURCHASE SCAMS REPORT

Gender
Of the online purchase scams reported to BBB Scam Tracker between 2015 and September 2020,
68.5 percent were reported by women compared to 31.5 percent by men. Women are more likely
to lose money to online purchase scams (80.9 percent) than men (73.9 percent), but men lose
more money ($100) than women ($80) when they fall prey to these types of scams.

Military Status
Almost 10 percent of online purchase scams reported to BBB Scam Tracker Military
between 2015 and 2020 came from the military community (active duty, consumers lose
spouses, and veterans). Military consumers are more susceptible overall, with
more money to
military spouses (81.9 percent) and veterans (78.7 percent) more likely to
lose money to these scam types than non-military consumers (77.9 percent).
online purchase
More concerning is that the median dollar loss for all military consumers— scams than
active duty ($109), military spouses ($96), and veterans ($98)—is higher than non-military
non-military consumers ($88). consumers.
Impact on Other Demographic Groups Identified in 2020 Survey Research
Our survey research considered other demographic groups that may be more vulnerable to
online purchase scams. Compared to the overall susceptibility rate for all survey respondents
(79 percent), the following groups in the U.S. and Canada were more likely to lose money to
scammers: consumers facing independent living challenges (94 percent), Asian consumers
(94 percent), the visually impaired (86 percent), Black consumers (84 percent), non-native
English speakers (83 percent) and the hearing impaired (83 percent). 3

FIGURE 10

Figure 10: Susceptibility

Susceptibility Rate Differences
Differences AmongBetween Other Demographic Groups

Other Demographic Groups

94% 94%

86%
Overall 84%
83% 83%
Susceptibility
Rate
79%
78% With Non-Native Black With Visual Asian Independent
Latino or Hearing English Impairment Living
Hispanic Impairment Speaking Challenges

Further research is recommended. And, it should be noted that it is likely there is under-reporting to BBB Scam
3

Tracker from some of these populations since our sample indexed lower than the overall population for responses
from Blacks (7 percent), Hispanic/Latinos (4 percent), and Asians (3 percent).

BBB.org/ScamTracker | 2020 ONLINE PURCHASE SCAMS REPORT 11

 Protective Factors and Behaviors
Forty-five percent of survey respondents in 2020 said they avoided losing money because they
had a gut instinct something was not right about the situation. Other key factors that helped
targets avoid losing money were: checking the background of the scammer (20 percent),
intervention by organizations such as a banks or credit card companies (15 percent), knowledge
about the tactics of scammers in general (12 percent), researching online purchase scams
(11 percent), past experience with scams (4 percent), and knowledge about online purchase
scams (4 percent).

Impact of Prior Knowledge to Online Purchase Scams

Those who were aware of online purchase scams prior to being targeted were less likely
to lose money (77 percent) than those who were not aware (82 percent).

Out of the 57 percent who did not research the website

or business via an independent source before making a
purchase, 81 percent lost money.

FIGURE 11

Factors Preventing Monetary Loss

STRUCTURAL
Figure 11: Factors Preventing Monetary Loss (on a 100% Scale)
INTERVENTIONS:
I felt something wasn’t right about the situation.
45% Ten percent of those
exposed to the scam
I checked the background of the scammer. said an organizational
20% representative (from
banks, credit card
My bank (or other financial organization) stopped the transaction.
15% companies, etc.) tried
to intervene to stop
I knew about the methods and behaviors of scammers in general. the transaction. When
ut the scam methods 12%
they did, 40 percent
of targets were able
I researched the type of scam/offer I was targeted for.
11% to avoid losing money.

I had experience with scams.

4%

I knew about the particular type of scam.

Please note that sum is
4%
greater than 100% because
people could select more
than one response.

0 20 40 60 80
12 BBB.org/ScamTracker | 2020 ONLINE PURCHASE SCAMS REPORT
Consumer Trust & Confidence
Trust is a critical factor for consumers making decisions about where to do their online shopping
and for businesses interested in attracting and retaining customers. As exposure for online
purchase scams continues to rise, how consumers make decisions about where to conduct their
online purchases will impact their scam risk. According to our survey, 35 percent of those who
were exposed to an online purchase scam will only trust known retailers for future purchases
while 46 percent said they now better understand the red flags for identifying fraud or are more
confident in detecting a future scam attempt.

When asked which factors helped them trust a website (open-ended question), the top five
factors listed included: buying from a reputable business, testimonials and reviews, researching
the business before buying, checking with BBB (e.g., BBB Accreditation Status) and reviewing the
security and/or professionalism of the website.

When asked to choose the top three characteristics they consider before choosing a business or
website for online shopping, survey respondents who did not lose money mentioned the presence
of contact information on the website (address, phone number), a visible return and refund policy,
and a BBB Accreditation seal on the website (Figure 12).

FIGURE 12

Those who did not

Most Important Characteristics lose money were
Consumers Consider for Online Shopping
22 percent more likely
FOR THOSE WHO FOR THOSE WHO than those who did
LOST $ (% Total) DID NOT LOSE $ (% Total)
lose money to say the
45% 49% BBB Accreditation seal
Testimonials Listed Contact
or Positive Reviews Information
is an important factor
in helping them decide
41% 45% who to trust online.
Listed Contact Visible Return
Information and Refund Policies

37% 45%
BBB Accreditation BBB Accreditation
Seal Visible Seal Visible

36% 44%
Visible Return Testimonials
and Refund Policies or Positive Reviews

28% 29%
Professional Simple Language
Website Design with Correct Spelling Please note that sum is
greater than 100% because
people could select more
than one response.

BBB.org/ScamTracker | 2020 ONLINE PURCHASE SCAMS REPORT 13

 Prevention Tips: What Consumers Can Do
To Avoid Online Purchase Scams

If the deal looks too Professional photos do Before you buy,

good to be true, not mean it’s a real offer. do your research.
it probably is.
Respondents reported that Out of the 57 percent
The top motivating factor website photos motivated who did not research the
for people who made a them to engage with website or business via an
purchase and then lost scammers, especially for independent source before
money was price. Don’t Pets/Pet Supplies, Clothing/ making a purchase,
shop on price alone. Accessories and Vehicles. 81 percent lost money.

Beware of fake websites.

CHECK THE URL Scammers will create fake URLs that mimic well-known brand
names. If you look closely you can usually detect one character or something
else that is incorrect.

WATCH FOR BAD GRAMMAR Read the content carefully—you may detect typos
and bad grammar, indicating the website was put together quickly.

RESEARCH AGE OF DOMAIN Scammers create attractive sites quickly to attract

victims before the sites must be taken down. Online tools can help you find out
how long the domain has been active. If it’s a young website, proceed with caution.

SEARCH FOR CONTACT INFORMATION Is there a way to contact the business

(phone, email address, address, online chat)? If the only contact information you
can find is an online form, do a little more research.

ONLINE REVIEWS Visit BBB.org, Google, or other third-party sources to

determine if consumers have filed complaints against the business.

14 BBB.org/ScamTracker | 2020 ONLINE PURCHASE SCAMS REPORT

 Beware of making quick purchases That shipment tracking information
while scrolling social media. you received might be fake.

Did you see an ad for those red shoes Of the 59 percent that received shipment
you’ve been searching for, and they’re a tracking information, 54 percent reported
steal? Like marketers for real companies, it was fake. Look closely to make sure you
scammers have access to the tools are dealing with a legitimate business.
they need to learn about your buying Don’t just click on the tracking link;
behaviors, offering up exactly what you go to the shipper’s website and type in
want at enticing prices. the code yourself to see if it’s real.

Use secure and traceable Don’t believe

transactions and payment methods. everything you see.

Via our survey, those who paid with Scammers are great at mimicking official
credit card or PayPal were less likely seals, fonts, and other details. Just
to lose money. Avoid paying by wire because a website or email looks official
transfer, prepaid money card, does not mean it is. If a business displays
gift card, or other non-traditional a BBB Accreditation Seal, you can verify
payment methods. its legitimacy via the BBB.org website.

Make sure the website Be careful purchasing

is secure. sought-after products, especially
Look for the “https” in the URL during the holiday season.
(the extra s is for “secure”) and a The risk of online purchase scams rises
small lock icon on the address bar. during the holidays because more
Never enter payment or personal people are making online purchases,
information into a website with only but also because scammers are offering
“http” (it is not secure). the most popular products for the
season at great prices.

BBB.org/ScamTracker | 2020 ONLINE PURCHASE SCAMS REPORT 15

Acknowledgements
This research report was a joint project of BBB Institute
for Marketplace Trust and the International Association
of Better Business Bureaus (IABBB). Contributors
include Dr. Rubens Pessanha, MBA, PMP, GPHR,
SPHR, SHRM-SCP, IABBB senior director of research
and development; Sean Xiangwen Lai, IABBB research
and development specialist; Matt Scandale, IABBB
senior data analyst; Melissa Trumpower, BBB Institute
executive director; and Melissa Bittner, BBB Institute
training and curriculum manager.

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or reporting scams from Facebook, Google, Instagram,
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