Social media advertising is an effective way for small business to get the word out about their products. Unfortunately, the same goes for scams.
Look out for these common scams:
Free Trial Offers: Many of these misleading advertisements tout celebrity endorsements and promise a trial of the hottest new skin care or nutritional supplement for the minimal investment of shipping fees. What consumers report is that once they agree to the terms and conditions of these offers, they realize they have agreed to multiple monthly shipments for products in excess of $70-$100 each.
Before you sign up for these “limited time offers” research the company online, see if there are any other consumer complaints, read the terms and conditions you are agreeing to carefully, and if you can’t find any terms and conditions, that is a red flag. Watch out for pre-checked boxes and make sure that you know who and where the company is that you are purchasing from.
Counterfeit Merchandise: Name brand goods are prime targets for unauthorized duplication, from sporting goods to designer apparel and handbags. If you purchase any of these products you may run the risk of not only receiving a poor-quality product, but it may not meet environmental and safety regulations either.
Look out for red flags. This includes items that are priced significantly lower than what other retailers are charging, spelling and grammatical errors in the advertisements, and poor-quality images. These are all signs that the advertisement may be for a counterfeit product.
Apps of Unknown Origin: While scrolling through your feed you may feel compelled to download the latest “free” app. Beware! By downloading this app, not only are you opening up your device to this unknown entity, you could possibly be signing up for recurring subscription fees. Victims report being charged fees as high as $99 every seven days.
Before you enter your username and password, read the reviews. Also, read the description of the app carefully and look for spelling and grammatical errors. Check that the developers’ website is a working website and read the terms and conditions carefully ($99 every 7 days adds up quickly).
How to Protect Yourself from Social Media Scams
- Do your research. Before making a purchase, do a quick search for the business in question. Do they have valid contact information? Don’t be fooled by professional photography or consumer reviews on their website. These can be lifted from other sites. Check BBB Scam Tracker to see if others have been duped.
- Search for previous complaints. Do a Google search of the business name followed by “complaints,” “reviews,” or “scam” and see what pops up. If you find other people have been cheated by this business, steer clear.
For more tips you can trust, visit bbb.org.
