Beware of social media advertising 'traps' to avoid losing money during the holidays

Personalized gifts like personalized jewelry, personalized ornaments, or unique mugs are always a thoughtful choice. However, not all that glitters is gold. Scammers have been quick to capitalize on this trend, so stay alert and know how to spot the warning signs.

The Better Business Bureau (BBB), a nonprofit that evaluates and rates businesses for their reliability, said many reports show that scams often appear through social media ads, targeting people looking for deals during holidays or special events.

When customers unwittingly order from these sites, they may receive poor quality products, designs that are not as described, or worse, the item never arrives.

How do social media advertising scams work?

Social media ads are often designed to be eye-catching, come with enticing offers, and entice you to a website that looks professional at first glance. But when you take a closer look, you’ll notice a number of red flags.

For example, a website's URL address may be inconsistent, its content may contain typos, or it may deliberately mimic the look and feel of a legitimate website. These sites are often hastily set up, intended to lure in buyers and then disappear.

Return policies (if any) are often unclear or have too many unfavorable terms, making it nearly impossible to get your money back. Once the shopping season is over and they've cashed in, the scammers disappear with your money, leaving frustrated customers with nothing to do.

When these items do arrive (if they do), they often leave buyers feeling disappointed. Many customers report that the products they receive are completely different from the advertised images.

Fraudsters know the consumer psychology well, knowing that most customers will avoid the hassle of returning an item, or simply put it off until after the holidays. By then, the scam site may have disappeared, along with any trace of contact.

While some social media platforms have strict policies regarding ad controls and advertiser verification, not all platforms apply such strict rules.

Fraudsters are masters at exploiting loopholes, constantly creating new accounts to evade controls. It is not uncommon for the same group of scammers to have multiple advertising accounts, used once and then abandoned after profiting from unsuspecting customers.

Suspicious signs to watch out for

Suspicious social media ads can sometimes look appealing and seem harmless at first glance. However, if you look closely, you can spot the warning signs. A simple but effective rule of thumb is that if something sounds too good to be true, it probably isn’t.

Huge discounts on seemingly high-end products or other tactics that create a sense of urgency and pressure you to buy right away are often signs of a scam. These businesses often operate with a low level of transparency, providing vague contact information, generic email addresses, non-existent phone numbers, and even unreliable registered addresses.

To check for credibility, search for the business name on reputable review platforms. If there are a lot of negative reviews or scam warnings, it’s best to stay away. Another way to test is to contact customer support; reputable companies will respond quickly and professionally, while questionable sites may be vague or not respond at all.

Always prioritize shopping from brands with a good reputation, transparent return policies, and real reviews from previous customers. This will not only help you avoid risks but also provide a safer shopping experience.

Customer reviews are an important factor to consider when checking the credibility of a business. Legitimate businesses often receive a variety of feedback over time, both positive and negative. In contrast, scam sites rely heavily on fake reviews, which are often generic or overly complimentary, to create the illusion of credibility.

Pay attention to how the reviews sound, if they sound robotic, repetitive, or too perfect, they are likely the work of a robot or staged content. Another sign of a fake review is mentioning the business or product by name too often, which sounds more like search engine optimization than genuine customer feedback.

Also, check the business’s social media accounts. If their page looks empty, has only unusually positive comments, or has a bunch of identical comments, it could be a sign of bots interacting.

These accounts are set up to increase likes, comments, and shares to create a false sense of popularity that makes people trust them more. Be especially wary of posts that are too frequent, have similar comments, or include unnatural brand mentions.

Typically, a trustworthy business will offer secure payment methods like credit cards or PayPal, along with buyer protection policies. If a site only accepts direct bank transfers, cryptocurrencies, or shady payment apps with no clear refund policy, it’s best to stay away.

In particular, if they ask you to pay off-platform or offer a “special deal” when using an untraceable payment method, that’s a clear sign of a scam.

Before entering personal or payment information, make sure the site has secure encryption. Look for the padlock icon and HTTPS prefix in your browser's address bar. While they're not foolproof, if a site doesn't have them, your sensitive information could be at risk.

Finally, always be vigilant and double check before buying online. A little caution can help you avoid unnecessary risks.

What to do if you get scammed on social media?

If you or someone you know is unfortunate enough to fall victim to a social media scam, follow these steps:

- Do not continue sending money and block all communications from the scammer.

- Immediately contact your bank and financial institution to report the scam and ask them to stop all transactions.

- Collect and save evidence, make a complaint and send it to the police station where you are staying.

Also, share your experience to help prevent others from falling into the same trap. Post a review, write a warning on a forum, or share on social media to raise awareness.

Be especially wary of follow-up scams. Scammers may come back to target you again, pretending to offer “refunds” or using other manipulative tactics to take more money.