Fighting Fraud
By Better Business Bureau Serving Greater Cleveland
What is an Out-of-Stock scam? A shopper may come across a product online that catches their interest, often through a social media ad. The shopper clicks on the link to the company’s website, finds the product, and completes the checkout process. Shortly after the purchase, the shopper’s card is charged, but soon after, they receive an email from the company claiming the product is out of stock and that a refund will be issued.
The shopper waits several days for the refund to appear in their account, but it never does. Concerned, they try to contact the online store for clarification, but their attempts go unanswered. As time passes, it becomes clear that they have fallen victim to an out-of-stock scam, a common fraud that shoppers often encounter when purchasing through suspicious online ads.
BBB has seen these scams reported by consumers throughout the nation. One consumer reported to BBB Scam Tracker in December 2024, “I saw the ad of this company for a wet t-shirt and I ordered that, after waiting for 2 months with poor contact from the team, they said “they were out of stock”, finally they sent it and the package was lost. They sent me a second other as a replacement and it was not the t-shirt I ordered, I contacted them and they haven’t responded to my email or social media post. Scam!”
Another shopper told BBB Scam Tracker, “The order went through and money was taken out of my account. After more than a week of long wait for my order to ship, the order got canceled (saying the size ordered was out of stock) and the money was never returned to my account.”
The product likely never existed in the first place, and scammers hope you’ll never notice you didn’t get your refund. However, if you used a credit card, you should be able to contest the charge and get your money back.
How to avoid online shopping scams:
- Research before you buy. Always research businesses on BBB.org before you purchase, especially if you aren’t familiar with the company. Read consumer reviews on other websites and do a quick online search for the business name along with the word “scam” to rule out any suspicious activity spotted by other consumers. BBB Accredited Businesses have agreed to abide by the BBB Standards, so look for the BBB Seal: It’s The Sign of a Better Business℠!
- Watch out for social media scams. Con artists love using social media to promote their scams. Some red flags include deals that seem too good to be true, phony personalized products, fake coupons, and product links that lead to questionable websites.
- Make sure the website is secure. Don’t make purchases from a website that isn’t secure. How can you tell if a website is secure? It should have a tiny lock symbol in the browser bar and start with HTTPS, not just HTTP.
- Keep records of your purchase. Keep receipts, order confirmations, and any other correspondence you have with a company that has promised to deliver a product. These documents will come in handy later if you need to contest the purchase.
- Use your credit card. It’s always best to use your credit card instead of a debit card to make online purchases. Credit cards offer more protection.
Before shopping online, review the BBB Tip: Smart shopping online and our online shopping hub for more information on staying safe. If you’ve been the victim of a scam on social media, report it to the BBB Scam Tracker. Your report helps us build consumer awareness and reduce the effectiveness of scammers’ favorite tactics. Have additional questions? Reach out to your BBB at 216.241.7678 or [email protected].
