11 Online Shopping Scam Statistics You Should Be Aware Of
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In today’s digital era, shopping is only one click away. The same goes for shopping scams.
Statista said that over 38% of all scams reported worldwide were from online purchases. This surge was recorded amidst the COVID-19 pandemic, when people had to shop for their needs online.
An online shopping scam occurs when a seller pretends to be legitimate. They do this on a mock website or in a fake advertisement on a legitimate retailer’s site. Online shop scammers usually collect money or personal information from you.
If you are a frequent shopper, this article will reveal online shopping scam statistics you should know. Read on.
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- There were 1,564 online shopping scam reports in April 2023.
- Women reported more online scam reports.
- 35 to 44 years old recorded the highest number of online shopping scam reports.
- There were 5,305 online scam reports in the US for 2019 Q1 alone.
- The highest rate recorded for e-commerce chargeback revenue lost was 7.59% in 2017.
- 4% of phishing scams are recorded in e-commerce from the first quarter of 2022.
- For every $1 chargeback, online shop sellers lose $3.94.
- The chargeback fraud episodes recorded approximately 33 million annually.
Important Online Shopping Scam Statistics
The world has recently learned about online shopping. The convenience of simply clicking and waiting when purchasing online is why most people try it.
However, along with its benefits, online shopping scams have become rampant.
According to Scamwatch, they have received 1,564 online shopping scam reports. 48.3% of these reports said they lost money to scammers.
There are more online shopping scam revelations aside from this. Continue reading for more statistics to help you stay safe when buying online.
General E-commerce Fraud Statistics
Online shopping scammers know how to maximize technology to make people believe they are legitimate. Many people, even younger adults, fall victim to this strategy.
The Federal Trade Commission revealed that there are more younger adult victims than older ones. Almost 86% of scam victims are people 60 years old and younger.
Be wary of these cybercriminals by reading these crucial statistics:
- 56.5% of women reported more online scam reports than men, with only 42.1%.
(Scamwatch)
Online shopping scams can affect everyone. However, women have more online scam reports than men. The results are as follows:
- Women – 56.5% or 883 reports
- Men – 42.1% or 649 reports
- Gender X – 1.4% or 22 reports
Regardless of the difference, the numbers only show that online shopping scammers can lure any victim, regardless of gender.
- People aged 35 to 44 recorded the highest number of online shopping scam reports.
(Scamwatch)
Contrary to the popular belief that older people are more vulnerable to scams, people between 35 and 44 have the highest number of online scam reports, with 328 cases.
Here are the numbers for other age groups:
- 25 to 34 years old – 278 reports
- 45 to 54 years old – 232 reports
- 55 to 64 years old – 167 reports
- 65 years and above – 150 reports
- 18 to 24 years old – 124 reports
People aged 35 and 44 are primarily working class and have families. This age group has many things to buy, which makes them prone to scams.
- 37.8% of shopping scam reports are primarily because of the Internet.
(Scamwatch)
Scammers are maximizing the Internet. The web has the highest delivery method among the recorded reports. This table shows the results:
| Delivery Method | Percentage | Number of Reports |
| Internet | 37.8% | 591 |
| Social networking | 21.8% | 341 |
| 16.4% | 256 | |
| Text message | 8.5% | 133 |
| Mobile application | 4.9% | 77 |
| 1.6% | 25 | |
| In-person | 0.8% | 12 |
| Not applicable | 0.3% | 5 |
In-person and outdated types of communication have the lowest percentage on the table. Scammers now know how to utilize the newest technology to their advantage.
- Identity theft is the most concerned scam that 71% of merchants are worried about.
(National Merchants Association)
71% of merchants revealed that they are concerned about identity theft. Over 450 million people had their personal information compromised in 2018.
Since the increase in e-commerce, retailers see identity theft as a big issue. This is why merchants take precautionary measures to avoid it.
- In 2019, over 60,000 potential scams were recorded just before the big holidays.
(Consumer Reports)
Research revealed that more than 60,000 potential scams from 26 popular brands happened before and during the holidays.
This surge indicates that scammers are aware of when there will be an increase in purchases. The holidays make detecting fraudsters challenging because the number of shoppers increases.
Statistics On E-commerce Scam Types
Econsumer.gov said there were 5,305 online scam reports in the United States alone from January to March 2019. As time goes by, scammers learn more types of e-commerce fraud.
These statistics will help you be safer while shopping online:
- Card testing fraud recorded a 200% increase in 2017.
(thegood)
One of the most widespread tactics in online shop scams is card cracking or card testing fraud. It had a 200% increase in 2017. This percentage equates to 16% of all types of e-commerce fraud.
Card cracking fraud occurs when someone uses a stolen credit card to make big and small purchases. Scammers are maximizing every payment platform to increase their revenue.
- The highest rate recorded for e-commerce chargeback revenue lost was in 2017, with 7.59%.
(MIDIGATOR)
Online businesses usually let customers request a chargeback, and scammers abuse this. The highest chargeback rate recorded was 7.59% in 2017.
The rates from other years are as follows:
| Year | Percent of revenue lost from chargebacks |
| 2018 | 5.4% |
| 2019 | 4.4% |
| 2020 | 3.81% |
| 2021 | 2.31% |
Once a chargeback is granted, the seller shoulders the payment. Retailers lose revenue due to the different fees they must pay.
- 4% of phishing scams were recorded in e-commerce in the first quarter of 2022.
(Statista)
According to Statista, e-commerce ranked 5th as the most targeted industry by phishing scams. It had a share of 4% in the first quarter of 2022.
Phishing is common in different industries, and this percentage shows that e-commerce is not an exception.
Statistics On The Cost Of Online Shopping Fraud
Due to the rise of online shopping scams, the cost has also increased.
Statista reported a $48 billion loss from online payment fraud worldwide would occur by 2023. It is a $7 billion increase from the last 2022 loss, which was only $41 billion.
Read more about how much online shopping scams have already cost the world.
- Over $64 billion in revenue is expected for the e-commerce fraud detection and prevention (FDP) market.
(Statista)
Compared to the 2017 FDP market worth $19.5 billion, there is a significant increase this year. The world should expect to see over $64 billion from this industry.
The demand for cybersecurity services will also evolve as online businesses rise. This precautionary measure will give sellers the protection they need from fraudsters.
- For every $1 chargeback, online shop sellers lose $3.94.
(RAVELIN, MIDIGATOR, Quick Sprout)
Chargeback fraud is one of the e-commerce fraud types from which sellers suffer the most. Research shows merchants lose $3.94 for every $1 chargeback, meaning a loss of $2.94.
- In 2022, the number of chargeback fraud episodes recorded will be approximately 33 million annually.
(Rapyd)
There is about a 20% increase in credit card chargebacks annually. There were approximately 33 million records from chargeback fraud episodes last year.
This resulted in the growth of chargeback rates. Even though some businesses started to block credit cards, fraudsters still found a way to use them.
Conclusion
Online shopping scams cause unease for both sellers and consumers worldwide. With the rise of e-commerce, cybercriminals have found new ways to exploit everyone in the industry.
Their methods are becoming increasingly advanced. The statistics above show that everyone should be vigilant and always take precautions when purchasing.
By staying informed, merchants and customers can protect themselves from becoming victims of scams.
