Even though Halloween isn’t here yet, many people have already started their holiday shopping early, before the last trick-or-treaters leave the streets.

This is why it’s important to remind everyone about potential online shopping scams. These warnings could be useful for those searching online for anything from costumes to gifts.

Scammers are aware that the holiday shopping season is upon us, and they are developing various tactics to steal your money.

Expect an increase in spending this season

The National Retail Federation released its spending forecast for the winter holidays on Tuesday, predicting an increase of 2.5% to 3.5% compared to 2023. This suggests that total holiday expenditures in November and December could reach between $979.5 billion and $989 billion, up from $955.6 billion during the same period last year.

Online shopping is a significant contributor to this growth. According to the retail forecast, online and non-store sales are expected to rise by 8% to 9%, which could mean approximately $295.1 billion to $297.9 billion will be spent online and outside traditional stores.

Be cautious of ‘card declined’ notifications

Reports indicate that individuals are experiencing fraudulent charges on their credit and debit cards after being shown a “card declined” message while shopping online, per the BBB.

Essentially, scammers have discovered a method to get you to provide more than one card number.

Imagine you find what you want online, enter your card details at checkout, but then the website unexpectedly tells you your card was rejected.

Sometimes, you might even see an error message stating, “Your card did not go through for some reason.”

What should you do? Most people won’t think to cancel the order right away, which would actually be a smart thing to do. Instead, they pull out another card, enter that information, and face the same error.

After contacting their bank or credit card company for clarification, they learn their accounts are perfectly fine. Their cards weren’t declined at all. According to the BBB alert, they’ve been charged significantly more than expected for the purchase.

One report shared that a consumer lost $200 while trying to buy a water bottle.

“The website rejected my first attempt,” the consumer told the BBB ScamTracker. “I tried again with a different credit card, which was also turned down. Then I asked my husband to try, and his card was declined too.”

Yet all three payment attempts led to extra charges.

In another incident reported to the BBB ScamTracker, a shopper was immediately contacted by their credit card company about $2,500 in charges that were denied, although the shopper had never attempted to purchase anything remotely close to that amount.

This shopper had only entered a credit card number and received a message indicating that the transaction did not go through. When they tried to buy again using the same card, they encountered the same error. Luckily, that attempt was rejected, but the shopper was still upset.

“Now my personal email, address, phone number, and credit card details are at risk,” the consumer wrote.

Tips to avoid falling for scams and fake websites

Several online shopping warnings remain relevant: Scammers frequently advertise fake products on social media platforms, which could lead you to purchase items you’ll never see again. You might also receive unsolicited emails that appear genuine but are not.

One early warning sign of a scam is if the vendor is selling a highly sought-after item that’s sold out elsewhere or if the ad claims to have everything at 90% off. Really, when does that ever happen?

Before filling your shopping cart, search for the website name alongside words like “complaints,” “reviews,” and “scam” to find out what past customers have experienced.

Also, be sure to check the return and refund policies before entering any payment information. If the website offers minimal or no details regarding returns or refunds, then it’s best to skip that order altogether to avoid potential hassle.

Beware of shopping troubles on the horizon.

Make sure to carefully review any emails or credit card statements for unexpected charges that you may need to challenge. A consumer reported to the BBB ScamTracker last October about approving a single payment of $29.99 for a bracelet purchased online, only to find that they were billed an additional eight times for the same amount, accumulating nearly $240 in illegitimate charges.

Halloween Scams and Dubious Spending

As you prepare for Halloween shopping, it’s crucial to be wary of your online purchases. The National Retail Federation predicts that consumers will spend an average of $104 per person this Halloween, amounting to a total of $11.6 billion in festive expenses. This year’s spending is anticipated to be slightly less than the $12.2 billion expected in 2023.

Here’s a particularly alarming statistic: Approximately $3.8 billion is expected to be spent on Halloween costumes. To steer clear of Halloween-related scams, keep an eye out for the following:

• Fake Costume Websites: Many online stores may seem to offer fantastic deals on costumes, but experts warn you might be dealing with a fraudulent site that won’t fulfill your order. Always verify the website’s URL to ensure it’s a legitimate retailer. Look for a lock icon near the URL and an “s” following “http” in the web address; these indicate you are on a secure site.
• Phony Shipping Texts: I recently received a fake message that appeared to be from “U.S. Customs”—not about costumes. It claimed, “You have a USPS package being cleared due to an invalid zip code, and the package is temporarily held.” The text prompted me to reply with ‘Y’ and then follow a link, which I absolutely ignored. If you’ve just made an online purchase, be cautious about such messages; they might trick you into thinking immediate action is required, but you do not need to respond.
• Counterfeit Cosmetics: Fake makeup during Halloween can severely harm your skin and facial health, cautions Kari Kammel, director of Michigan State University’s Center for Anti-Counterfeiting and Product Protection. She emphasizes that any branded item can be counterfeited, and the same caution applies to novelty contact lenses.