MILWAUKEE — Social media advertising is an effective way for small businesses to get the word out about their products. Unfortunately, the same goes for scams. BBB Scam Tracker (BBB.org/ScamTracker) has received thousands of complaints about misleading Facebook and Instagram ads. In fact, the 2018 BBB Scam Tracker Risk Report found that online purchase scams were the most common cons reported to Scam Tracker and the category with the most victims.
How the Scam Works
Look out for these common scams reported to BBB Scam Tracker:
● Products That Claim to Support Charity: When scrolling through Facebook or Instagram feeds, there may be an ad from a small business selling adorable jewelry, t-shirts, or other merchandise. The best part? Some of the proceeds from the sale will go to a charity that helps rescue animals, foster children, or support another worthy cause. Some consumers even report getting direct messages from sellers promoting the products and asking them to spread the word to friends and family.
The user makes a purchase, but when the merchandise never gets delivered, the doubts start to build. When trying to contact the company about the purchase, the company is suddenly unreachable or replies with an autoresponder. In reality, the product never existed. It was all a ploy to get money.
● Free Trial Offers: Many of these misleading advertisements tout celebrity endorsements and promise a trial of the hottest new skincare 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 signing up for these “limited time offers,” research the company online to see if there are any other consumer complaints. Also read the terms and conditions carefully, and if there aren’t any terms and conditions, that is a red flag. Watch out for pre-checked boxes and make sure that to know who and where the company is from.
●Counterfeit Merchandise: Name brand goods are prime targets for unauthorized duplication, from sporting goods to designer apparel and handbags. If purchasing any of these products, users 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.
● Engaging Ads, Poor Customer Service: This category covers a broad spectrum of complaints that BBB receives, from ads for beauty products to trendy clothing to kids’ toys. The advertisements look great and the products are often inexpensive. This means that consumers purchase without doing any research on the website or the company behind it. However, weeks pass, and the products never arrive. When the buyers reach out to customer service, they get a vague answer or they don’t hear back at all.
Before buying, do a quick online search. Google the website name with the words “complaints,” “reviews,” and “scam” to see what other customers are saying. Check the “About Us” or “Contact Us” information on the company’s website to see if they contain actual contact details for the business. If the only way to contact the company is through a form this is a red flag.
● 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 is the user opening up their device to these unknown entities, but could possibly be signing up for recurring subscription fees. Victims report being charged fees as high as $99 every seven days.
Before entering a username and password, read the reviews. Also, read the description of the app carefully and look for spelling and grammatical errors. Check that the developer’s website is a working website and read the terms and conditions carefully ($99 every 7 days adds up quickly).
How to protect against social media scams
● Do 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 other people have been cheated by this business, steer clear.
● Use good judgment. Many con artists play on consumers’ desire to help those in need. Users should keep this in mind and use their head, not just their heart, when supporting charitable causes. Go to Give.org to research organizations before giving.
For More Information
For more ways to protect oneself from social media shopping scams, see BBB.org/ShoppingOnline, and more general tips can be found at BBB.org/AvoidScams.
Victims of a social media ad scam should share their experience at BBB.org/ScamTracker. The report could help other consumers avoid falling victim to similar scams.
For more information or further inquiries, contact the Wisconsin BBB at www.bbb.org/wisconsin, 414-847-6000 or 1-800-273-1002. Consumers also can find more information about how to protect themselves from scams by following the Wisconsin BBB on Facebook, Twitter, Instagram and YouTube.
How to support small businesses during a pandemic holiday season
MILWAUKEE — This year has been especially rough on small businesses. During the 2020 holiday season, small companies need support to make it through these uncertain times. Here are BBB’s tips on how everyone can show small businesses some love.
By temporarily closing their doors, limiting capacity or scaling back services, small businesses are helping to keep their customers and employees healthy. But the loss of income makes it tough to cover on-going expenses like rent and salaries.
These tips may help your favorite businesses have the cash they need to make it through these lean times.
● Buy a gift card for later: many small businesses that have had to close or reduce services are offering gift certificates at discounted rates for when they open back up. Look on business’s websites and social accounts.
● Shop (local) online: local shops and vendors may have closed their (physical) doors, but many still run online shops. Look for them on social media or check the business’s website for links to their online marketplace.
● Look for virtual classes: people who work in training or professional development — anyone from personal trainers to the person teaching an office’s public speaking workshop — are finding creative ways to move their instruction online. Even though the local gym might have closed, its trainers may be hosting a live class online.
● Get take-out or delivery: many restaurants and breweries are now offering takeout with reduced or absent dine-in experiences. Support these local institutions by getting food or drinks to-go and enjoying it at home. Local food trucks are another way to show support.
● Skip the refund and take a rain check: if paid in advance for an event, such as theater or concert tickets, a class, or a service, consider taking a credit for the future instead of asking for a refund. These businesses will appreciate not needing to issue so many refunds right now.
If one’s own wallet is feeling the pinch, here are some free ways to support small businesses.
● Write an online review: this is a good time to finally get around to reviewing favorite local businesses. These five-star reviews do help companies rank well in search engines and on other listing services. This is an easy, free way to show support to local small businesses.
● Like and share on social media: help businesses reach a broader audience by liking and sharing their information on social media. This will help them reach future customers and gain more exposure.
● Tell your businesses their work is appreciated: these are tough times; keep morale up by reaching out to local businesses and letting them know their hard work is appreciated.
For more information or further inquiries, contact the Wisconsin BBB at www.bbb.org/wisconsin or call 800-273-1002.