MoneyMagpie Editor and financial expert Vicky Parry shares tips on getting your money back when you’ve been the victim of an online scam
Online scams are rife, because it’s so easy these days to set up what appears to be a legitimate online shop.
It’s harder than ever to spot a scam until it’s too late, and the item you ordered never arrives. While it can be difficult to get your money back, it’s not impossible. So, let’s take a look at how to spot an online scam and how to get a refund even if the retailer has shut down and scarpered without a trace.
Social media scams
You’ve probably seen the same videos promoting products with different names – this is a scam. Scammers will steal promotional images and videos for a real product, rebrand them (sometimes!) and post as if it is their own. The link will take you to an online shop, which looks like it is legitimate and that it’s selling the product – usually at an “unbelievable” discount. If it’s too good to be true – it is!
How to spot a fake shop
There are a few things you can do to stop getting scammed in the first place. First, do a Google search of “brand name + review” and “brand name + scam” to find any details about whether previous customers have had problems. Reddit is a useful resource for this as review sites like Trustpilot can have fake reviews, while Reddit is more likely to host genuine negative reviews of things.
Second, look up the company name on Companies House. A UK-registered company will have a filing on Companies House. Check their recent accounts filings – are they a brand new company? Do their accounts not change much year to year? These are common signs of a shell company. Finally, look at the products on offer. If the shop ONLY offers that advertised product or just a few things, it is likely to be a scam. Check when the website was created, and if you can use WHOIS to see who owns it.
If you get scammed
Even with lots of research, it can still be possible to get sucked into a scam. The first thing is: don’t feel bad about yourself for not spotting it, especially if you did the research before buying. Scammers are advanced these days, it can be hard to spot them. Take steps to contact the ‘retailer’ first. This is important because you’ll need to show your credit card company, bank, or PayPal that you tried to resolve the issue with the merchant first.
You’ll need to wait some time – usually 30 days – to allow them time to respond. In the meantime, take screenshots of any evidence, such as the fact the shop is no longer available online, reports of the scam online, and the product order email (if you have one).
Contact the payment provider
When you’ve got the evidence and the ghost retailer hasn’t replied to your contact, get in touch with the payment provider of the card or platform you used to buy the missing item.
Even if you bought on a credit card and the item was under £100, you may be able to claim a chargeback on your card. Many people think you can only do this for purchases over £100, but your card provider can refund you for any fraudulent transactions once they have been investigated.
The £100 lower limit is for other discrepancies, such as an item breaking after you have received it – not a fraudulent transaction where the item never arrived in the first place. PayPal has a dispute system to raise the issue online, while all banks and card providers will have a process to raise a chargeback.
Be patient
The merchant needs to have sufficient time to respond to any claims of fraud or chargeback refunds, so don’t rely on your cash coming back to you quickly.
They usually have 30 days to respond to your payment provider’s claims. In some cases, a scammer will reply – but not include the relevant information. A common example is to provide a screenshot of a map of your address as ‘proof of delivery’, but no actual postage or delivery proof. It’s all designed to waste time.
When your payment provider has investigated the situation, they may issue a refund. There can still be time for the merchant to dispute the refund, which means if evidence of delivery is then provided, you will be charged again by the payment provider. However, if you know for a fact it was never delivered then this should not be an issue.
If you’re unhappy with the resolution
Like any consumer service, if you’re unhappy with the resolution provided by your payment platform or credit card provider, you can raise a complaint with them about it. If they don’t change their minds or you’re unhappy with their response, you can raise a claim with the ombudsman to investigate further.
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