Source: American Bankers Association

In 2021, the FBI’s Internet Crime Complaint Center (IC3) reported that Americans lost $337 million to non-payment and non-delivery scams. In these scams, buyers pay for products or services online, but never receive them. Conversely, sellers ship goods or provide services, but never receive payment.

Recognize Warning Signs 

• Products and services advertised at incredibly low prices— significantly lower than competitors.
• Sellers that only accept payments by wire transfer, money orders, gift cards, or peer-to-peer payment services like CashApp, Venmo and Zelle. 
• Vague or non-existent contact details or information about returns, exchanges or privacy policies. 
• Websites with poor spelling or grammar. 

Practice Good Cyber Habits

• Be wary about clicking links, especially unsolicited ones you receive via text, social media, or email. 
• If you receive a message about updating your account information or password, do not assume it is safe. Contact the company directly on a verified number, rather than in the message received, to confirm. 
• Only enter your payment information on sites with a URL that includes “https,” as those sites are more secure.  
• Avoid using the same password for every account.

Do Business with Companies You Trust

• Do your research, check reviews or ratings and search for complaints on a company before buying. 
• Verify contact information on sites to ensure they are legitimate. 
• Be wary of sellers who claim to be U.S. residents, but say they are currently out of the country.
• Avoid buyers who request purchases be shipped using certain methods to avoid customs or taxes. 
• Monitor the shipping process and obtain tracking numbers. 

Your Payment Method Matters

• Never wire money directly to a seller, because it is unlikely you will receive a refund if there is a dispute.
• Only use peer-to-peer payments services with people you know, trust, and have met in-person. 
• Be wary of sellers who only accept gift cards or pre-paid debit cards. They may never send what you ordered, and you may be unable to be refunded. 

If You Have Been Scammed 

• Contact your financial institution to report that you have been scammed.
• Contact local law enforcement. 
• Report the scam to IC3 at www.ic3.gov.