SCAM ALERT: FTC Warns of Elaborate Social Media Scams Disguised as Discount Brand Deals

if a deal seems too good to be true, it probably is

(FTC) – The Federal Trade Commission is warning consumers to be cautious of social media ads offering name-brand products at unusually low prices, saying the tempting deals may actually be elaborate scams designed to steal money and personal information.

According to the FTC, scammers often impersonate well-known retailers and brands in online ads, drawing users to fake websites that look legitimate but are set up solely to deceive. Once a consumer clicks on the ad and makes a purchase, they may receive a counterfeit item, or nothing at all.

In more severe cases, consumers unknowingly give away sensitive information such as their bank account or Social Security number, putting them at risk of identity theft.

These fraudulent ads can appear across social media platforms and are often difficult to distinguish from real promotions. The FTC urges consumers to approach suspiciously low-priced offers with caution and to verify the legitimacy of the seller before engaging.

Officials recommend researching any unfamiliar company by searching its name along with terms like ‘scam,’ ‘complaint,’ or ‘review.’ Consumers should compare prices across multiple platforms to see if a deal is too good to be true. If the same product is selling elsewhere for significantly more, that’s often a red flag.

The FTC also advises using a credit card when making online purchases, as credit cards offer stronger protections if a transaction goes wrong. Shoppers should be wary of sellers who ask for payment via gift cards, wire transfers, peer-to-peer payment apps, or cryptocurrency. These methods are favored by scammers because they are harder to trace and nearly impossible to recover.

Anyone who believes they’ve fallen victim to an online shopping scam is encouraged to take immediate action. The FTC provides guidance through its website, including resources for those who have paid a scammer or suspect identity theft.

The FTC reminds consumers that if a deal seems too good to be true, it probably is.

Reports can be submitted at ReportFraud.ftc.gov, and identity theft support is available at IdentityTheft.gov.

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