These Are The Biggest Prime Day Scams To Watch For

 

The Amazon website is seen on a computer screen on July 14, 2019 in Orlando, Florida.

As big retail events Amazon Prime Day and Target Circle Week start next week, local governments and organizations are warning of a historic rise in these scams—and advising how to spot them.

Key Facts

Impersonation: Scams impersonating individuals or businesses, otherwise known as phishing, are the most common type of scams, and according to the Better Business Bureau, attempts increase during busy shopping days, and can take the form of emails or messages that contain links to illegitimate websites or malware that could steal banking or personal information, according to the Federal Deposit Insurance Corporation.

Urgent customer service calls: Fake phone calls from Amazon and Apple support are popping up falsely warning users of suspicious activity in their accounts, the FTC says, which urges customers to call them back after looking up the correct phone numbers as fake phone calls have become even more sophisticated thanks to AI and deepfake technology, says Scott Shackelford, the executive director of Center for Applied Cybersecurity Research at Indiana University.

Shipped Package Notices: Customers may receive emails claiming that a package needs to be rescheduled for delivery, requesting they click on a link to enter financial information or personal details.

Payments For Fake Reviews: False or misleading reviews are primarily driven by a “fake review broker” industry, Amazon says, where brokers pose as businesses to solicit favorable reviews in exchange for money or free products.

Social media ads: Online shopping scams are the most commonly reported social media scams, according to the FTC, as 44% of reports in the first half of 2023 were related to buying fake products online that often never arrive.

Key Background

Shoppers reported three times as many impersonation scams around Prime Day last year than usual, Scott Knapp, Amazon’s director of worldwide buyer risk prevention told CBS News. Online shopping issues were the second most commonly reported in the fraud category in 2023, according to data from the FTC. Scams related to Prime membership and confirmation orders are most common for Amazon during Prime Day, with many reporting unsolicited calls or emails about their membership and seeking financial information to reinstate the accounts, Knapp told the Associated Press. “We encourage consumers to report suspected scams to us so that we can protect their accounts and refer bad actors to law enforcement to help keep consumers safe,” an Amazon spokesperson said in a statement to Forbes.

What Can Consumers Do?

After making purchases, always confirm the tracking number of parcels and the email addresses from order confirmations, the BBB recommends. Be wary of sudden requests to confirm financial information and set up multi-factor authentication. When consumers receive calls from an unknown number urging them to dial back, hang up, the FTC warns. Instead, contact the company through its website or known phone number. Victims of scams can freeze their credit reports, Shackelford said, across all three credit reporting bureaus.

Big Number

Almost $398 million. That’s the amount in reported losses to online shopping and negative reviews, according to data from the FTC.

Crucial Quote

“It’s never been easier to create tailored and nuanced scams,” Shackelford told Forbes, adding that chatbots like ChatGPT have made it easier for individuals with no technical expertise to generate code. Knapp told the Associated Press that scams generated by artificial intelligence are “starting to leak in”.