12 Online Shopping Scams In Philippines: How To Avoid Them?

As someone who frequently shops online, I’ve seen firsthand the rise of online shopping scams in Philippines. It’s alarming, to be honest with you.

Did you know that in just the first nine months of 2023, Filipino shoppers lost more than $2.8 million to these scams? It’s a huge number, right? We’re talking about a lot of people, just like you and me, getting tricked by these fraudsters.

And it’s not just about losing money. These scams shake our trust in online shopping, which should be all about convenience and finding good deals. 

With scams on the rise, we need to be extra careful. I always tell my friends and family to be vigilant when they shop online. After all, it’s better to be safe than sorry, especially when our hard-earned money is at stake.

12 Types Of Online Shopping Scams In Philippines?

Online shopping in the Philippines is not simply about convenience and getting the best Philippine deals. It’s a playing field for scammers. With Filipinos losing millions to online frauds, awareness is our main weapon. These scams come in various forms, each with its trickery, targeting unsuspecting shoppers.

1. Fraudulent E-commerce Websites

I’ve seen a lot of fake online stores popping up lately. They look just like the real deal, with all the right logos and slick designs. 

But here’s the catch!

Many of them offer those must-have items at prices that are way lower than you’d normally see. It’s tempting, I know. But I’ve heard too many stories of Filipinos who paid for something and got nothing in return or received a completely different, low-quality item.

Especially during big sales seasons like the Lazada 11.11 sale, these fake websites get really active. I remember reading about a lot of shoppers in the Philippines who got tricked last Christmas season. The losses can add up to a lot if you’re not careful. That’s why I’m extra cautious now whenever I spot an unbelievable deal online.

Things To Look Out For

• Websites using real company logos but have low ratings, no reviews, and low traffic.
• Super low prices on popular items that are too good to be true.
• Sellers that are only active during big sales like Christmas.

How To Protect Yourself

• Always check if the website’s address looks right and if it has “HTTPS” or a little padlock symbol in the browser. That means it’s secure.
• Always do a quick Google search about the seller or website before buying anything.
• Use your credit card or payment services like GCAsh, Maya, and PayPal that have protection against fraud. No direct bank transfers to sellers you don’t know well.

2. Phishing Email Scams

Phishing emails look exactly like it’s legit, like emails from your bank. It might say there’s a problem with your account and ask you to click a link.

That’s what happened to me once. Luckily, I knew better. These emails aim to steal important info like your login details and credit card numbers. It’s a common trick, and sadly, quite a few people in the Philippines have fallen for it.

I’ve seen these kinds of phishing emails in many forms. Sometimes, they’re disguised as urgent messages from a service you use. Other times, they’re lottery wins or job offers. The goal is always the same – getting your personal info. This brings us to an important question: Is online shopping safe in Philippines? I don’t think so because data and research have shown all the evidence.

Things To Look Out For

• Often look like they’re from banks or familiar services.
• Contain links or attachments designed to steal information.
• Common in the Philippines, with various disguises.

How To Protect Yourself

• First, never click on links or download attachments from emails you weren’t expecting. If the email claims to be from a company you know, it’s safer to visit their official website directly rather than through any provided link.
• Always check the sender’s email address for authenticity. Scammers often use addresses that look similar to the real ones but have small differences.
• If something feels off, trust your gut. Reach out to the company directly through their official contact details, not the ones provided in the suspicious email.

3. Social Media Marketplace Scams

Let me share a trend I’ve noticed in social media marketplace scams. A common scenario is sellers offering high-demand gadgets or designer products at unbelievably low prices.

I read about a case where numerous people were scammed by a seller offering the latest smartphones on a popular social media platform. Despite promises and seemingly genuine communication, once payments were made, the seller disappeared.

These social media marketplace scams often involve fake or copied product images, and some even feature fabricated reviews or ratings. Based on my research, a significant number of users in the Philippines have reported such scams, losing considerable amounts of money.

Things To Look Out For

• Ads for trendy items at below-market prices.
• Scammers use fake profiles with stolen product images.
• Reports of widespread incidents on major social media platforms.

How To Protect Yourself

• Investigate the seller’s history and credibility on the platform. Look for established accounts with consistent activity.
• Be cautious with payment methods. Opt for secure options that offer buyer protection.
• If the deal seems too good to be true, it might be worth reaching out to the platform’s support team for verification.

4. Fake Online Auctions

Fake online auctions are a notorious scam. There was a notable case where a bidder won a high-value item only to discover the product didn’t exist.

Such scams are not limited to obscure sites. They’ve been reported on well-known platforms, too. Scammers create auctions for in-demand items like electronics or collectibles, complete with detailed descriptions and convincing images, often stolen from legitimate listings.

These fraudulent auctions are designed to create a sense of urgency, pushing buyers to act quickly. The winning bidders end up paying, but the promised goods are never delivered. In some cases, these scams have led to substantial financial losses for victims.

Things To Look Out For

• Listings of high-value or in-demand items from unknown entities.
• Stolen or stock images to create a false sense of authenticity.
• Reports of such scams on both niche auction sites and major e-commerce platforms.

How To Protect Yourself:

• Research the seller’s profile and past auction history for credibility.
• Be wary of auctions with pressure tactics like very short bidding times.
• Use secure payment methods and consider platforms that offer buyer protection.

5. Counterfeit Product Sales

Counterfeit product sales are rampant in the online shopping world. There’s a notable trend in the Philippines where scammers sell imitation products as genuine, especially in categories like luxury goods, electronics, and pharmaceuticals.

These items are often sold through seemingly legitimate online stores or social media pages, complete with product images and descriptions that make them appear authentic.

In several reported instances, buyers received items vastly inferior to what was advertised, if they received anything at all. The quality and functionality of these counterfeit products are usually subpar, leading to customer dissatisfaction and financial loss. Here’s how to spot fake online products in Philippines that will help you save precious time and money:

Things To Look Out For

• Commonly counterfeited items include branded apparel, electronics, and medication.
• Usage of authentic-looking images and descriptions to deceive buyers.
• Prevalence on various online platforms, including social media.

How To Protect Yourself

• Verify the authenticity of the product by checking serial numbers or official verification methods.
• Purchase from reputable and authorized sellers.
• Be skeptical of deals that are significantly cheaper than the typical market price.

6. Gift Card And Voucher Scams

Gift card and voucher scams are an increasingly prevalent issue in the Philippines. Here’s a typical scenario: you find a gift card for a popular store or service advertised online at a significantly reduced rate.

It seems like a great deal, so you buy it. But when you try to use the gift card, it’s either invalid or already used. These online shopping scams in Philippines are especially rampant during holiday seasons and major sales, targeting consumers looking for discounts.

Scammers often use social media platforms and online classified ads to advertise these discounted gift cards or vouchers.

A report highlighted that during festive seasons, there’s a surge in such scams, with numerous buyers ending up with useless codes or vouchers. These fraudulent sellers typically push for quick transactions, exploiting the buyer’s desire for a good deal.

Things To Look Out for

• Exceptionally low prices that don’t align with the card’s actual value.
• Sellers who insist on immediate or unconventional payment methods.
• Gift card listings on platforms without verification processes for sellers.
• Lack of verifiable history or reviews for the seller.
• Ads that appear around festive seasons or major sale events, aiming to exploit the high demand.

How To Protect Yourself

• Always purchase gift cards directly from official retailers or their authorized outlets.
• If a deal seems too good to be true, take a step back and assess its legitimacy.
• Before making a purchase, verify the gift card’s validity either through the retailer’s website or by contacting their customer service.

7. Online Shopping Overpayment Scams

Overpayment scams in online shopping are pretty slick. Say you’re selling something online. A buyer comes along and accidentally pays you more than the asking price. They seem honest, so you agree to refund the difference.

But here’s where it gets twisted:

Their original payment was fake or gets canceled, and now you’ve lost not just your item but also the extra cash you refunded. I’ve seen stories about people in the Philippines who’ve fallen for this, ending up refunding money they never really got.

Scammers in these situations often act in a rush, making up stories about why they overpaid. They might use fake bank emails or checks that seem legit but eventually bounce.

It’s a clever trick because it relies on the seller’s good nature to do the right thing and refund the overpayment.

Things To Look Out For

• Buyers who overpay and then quickly ask for refunds.
• Payment methods that are unusual or complicated.
• Requests to refund the excess amount through a different method.

How To Protect Yourself

• Always wait for the payment to clear before sending any refunds.
• If someone overpays, be cautious. It might be a setup.
• Stick to straightforward payment methods and avoid complicated transactions.

8. SIM Swap Fraud

SIM swap fraud is pretty scary. Basically, scammers get a bit of your info, like your phone number. Then they call up your mobile company pretending to be you. They say, “Hey, I lost my SIM card. Can I switch my number to a new one?”

And just like that, they have control over your phone number. With this, they can get into your accounts, because they receive all your texts – yes, even those important security codes from your bank.

Now, imagine this happening to you. One day, your phone just stops working. No calls, no texts. You’re cut off. Meanwhile, the scammer, with your number, starts resetting your account passwords.

Before you know it, they could be draining your bank account. This kind of fraud is becoming more common here in the Philippines. People are losing not just their phone access, but their money too.

Things To Look Out For

• Suddenly, your phone has no service.
• Weird texts about password changes or OTPs you didn’t request.
• Calls or messages asking for personal details – be careful with those.

How To Protect Yourself

• First, keep your personal info safe. Don’t just give out your number.
• If your phone service suddenly stops, call your provider immediately.
• Regularly change your passwords and PINs, and keep them to yourself.

9. ATM/Card Skimming

ATM and card skimming is a sneaky scam, and it’s been happening quite a bit around here in the Philippines. Scammers use a small device called a skimmer, which they attach to ATMs or card machines. When you use the machine, this device steals your card’s info.

But that’s not all.

They often have a tiny camera or keypad overlay to capture your PIN, too. I heard about a case where several people had their account details stolen at the same ATM, leading to unauthorized withdrawals.

These scammers are pretty clever. They place the skimmers where they’re hard to spot. Sometimes, they work as a group – one distracts you while the other does the dirty work. It’s scary because you might not even realize it’s happened until you see strange transactions on your account.

Things To Look Out For

• Devices attached to the card slot of ATMs or payment machines.
• Hidden cameras or unusual objects near the keypad.
• Any unusual activity or people lingering around ATMs.

How To Protect Yourself

• Always cover the keypad when entering your PIN.
• Be alert for any odd attachments on the ATM or card machine.
• Regularly check your account statements for any unauthorized transactions.

10. Digital Payment Scams

Digital payment scams are becoming more common with the rise of online banking and e-wallets. Here’s how they work:

You get a message or an email that looks like it’s from your digital wallet or bank. It might say there’s a problem with your account or you’ve won a prize. They ask you to click a link and log in. But the link takes you to a fake website that steals your login details.

I remember a story where several people received a text message supposedly from a well-known e-wallet service, asking them to verify their account details. Those who responded found their accounts emptied shortly after.

Another trick is the fake payment confirmation. Let’s say you’re selling something online. You get a message that looks like a payment confirmation, but it’s fake. You send the item, but the payment never comes through. This scam takes advantage of the trust people place in digital transactions.

Things To Look Out For

• Unsolicited messages asking for your digital banking or wallet details.
• Links in emails or texts that lead to login pages.
• Payment confirmations for transactions you don’t recognize.

How To Protect Yourself

• Never click on links in unsolicited emails or texts. Always go directly to the app or website.
• Double-check payment confirmations against your account balance.
• Be cautious about sharing personal information online, especially in response to unsolicited requests.

11. Online Investment Scams

Online investment scams are tricky and can look very convincing. Typically, you’ll see an online ad or receive an email offering a chance to invest in a project with high returns.

It sounds tempting, right? But once you invest, either the returns never materialize, or the company suddenly vanishes.

There was a case where an online investment platform promised huge weekly returns. A lot of people invested, but when it was time to withdraw their earnings, the website disappeared, along with their money.

These online shopping scams in Philippines often use fake testimonials and show high returns in a short period to lure investors. The scammers are good at making their schemes look legitimate, often with professional-looking websites and detailed investment plans.

Things To Look Out For

• Offers of high returns with little or no risk.
• Investment opportunities that require you to recruit others.
• Pressure to invest quickly.

How To Protect Yourself

• Research any investment opportunity thoroughly. Look for reviews and check if the company is registered.
• Be skeptical of any investment opportunity that promises guaranteed returns.
• Avoid any scheme that asks for money upfront or pressures you to recruit others.

12. Identity Theft

Identity theft in online shopping is a serious problem and it happens when someone steals your personal information, like your name, address, or credit card details, and uses it to make purchases or even open new accounts in your name.

I’ve seen cases where people suddenly get bills for things they never bought or, worse, find their bank accounts drained. It can start with something as simple as a scammer getting hold of your online shopping account details.

This scam can be particularly damaging because it affects your financial health and your reputation. The scammers might use your information for various fraudulent activities, leaving you to deal with the aftermath.

They often gather this information through phishing emails, unsecured websites, or even by hacking into your accounts. The best thing you can do to combat identity theft is to follow online shopping tips in Philippines and make sure to share them with your loved ones.

Things To Look Out For

• Unexpected bills or charges for things you didn’t purchase.
• Alerts from your bank or service providers about unauthorized activities.
• Emails or messages that ask for your personal or financial information.

How To Protect Yourself

• Keep your personal information secure, especially online.
• Use strong, unique passwords for each of your accounts and change them regularly.
• Regularly check your bank and credit card statements for any unusual activity.

What Are The Technologies That Help Stop Scams?

With all the online shopping scams in Philippines, the good news is technology is evolving, too, arming us with new ways to fight these digital threats. Let’s explore the innovative technologies that are changing the landscape of scam detection.

AI And Machine Learning In Fraud Detection

AI and Machine Learning (ML) are at the forefront of this battle against online shopping frauds in Philippines. What they do is analyze massive amounts of data, something humans can’t process that quickly.

These technologies pick up odd patterns in transaction data or unusual customer behavior that might suggest something fishy is going on​​​​. It’s like having a super-smart assistant who never sleeps, constantly watching over your transactions.

The beauty of AI and ML is their ability to get smarter over time. They learn from each transaction, improving their ability to spot fraud without falsely flagging normal activities as suspicious.

Imagine a system that can spot a scam with up to 96% accuracy; that’s what we’re talking about here​​. This kind of tech not only protects us as shoppers but also makes the whole online shopping experience smoother.

Cybersecurity Measures For E-commerce

Cybersecurity is the shield that keeps e-commerce safe. We’re talking about more than simply passwords and firewalls. It’s the encryption of data to make it unreadable to unwanted eyes and conducting regular checks to ensure everything is locked down tight.

These steps are crucial to stop various online threats like hacking or phishing, which are all too common nowadays​​.

We need to set up these defenses and continuously update and monitor them. Imagine a digital fortress around your favorite online store, keeping your data safe. This is what modern cybersecurity looks like – a dynamic, evolving defense system that’s always a step ahead of cybercriminals​​.

Role Of Data Analytics In Scam Identification

Data analytics is the detective at work behind the scenes. By scrutinizing patterns in how we shop and pay online, data analytics can sniff out online shopping scams in Philippines before they do too much damage.

It’s like having a crystal ball that shows you where the next scam might come from, helping businesses and shoppers stay one step ahead​​​​​​.

The power of data analytics lies in its ability to adapt and learn. As online scammers change their tactics, analytics tools adjust and learn from these new patterns.

It’s a never-ending game of cat and mouse, but with data analytics, we’re not just playing defense; we’re anticipating the scammer’s next move​​​​.

Developing Secure Online Payment Systems

Secure online payment systems are the heart of safe e-commerce. We’re talking about creating ways to pay online that are not just easy but also super secure.

This involves technologies like two-factor authentication, where you need more than just a password to access your account, and tokenization, which turns your sensitive data, like credit card numbers, into a unique code​​​​​​.

What’s crucial here is making sure these systems are user-friendly while being ironclad. It’s a delicate balance – making payments easy enough so we don’t get frustrated but secure enough so that scammers can’t break in. And as technology advances, these payment systems are becoming smarter and tougher to crack​​​​.

Monitoring And Blocking Suspicious Activities

Monitoring and blocking suspicious activities is like having a vigilant guardian for your online transactions. Advanced systems now can spot something odd, like a purchase that doesn’t fit your usual pattern, and flag it immediately.

This tech is always on guard, using algorithms to analyze transaction patterns and behaviors. If it spots something out of the ordinary, it can block the activity and alert you.

This will protect your money and give you peace of mind, knowing that there’s a system working 24/7 to keep your online shopping experience safe and secure​.

How Do Philippine Laws Help Fight Scams?

In our beloved Philippines, where the online world is as bustling as our local markets, understanding the legal backdrop and law enforcement against cybercrime is crucial. As someone who navigates the online shopping seas frequently, I’ve come to appreciate how these laws and teams play a vital role in our digital safety.

Philippine Laws On Cybercrime

The Cybercrime Prevention Act of 2012, or Republic Act No. 10175, is like a digital sentinel for us. It covers a wide spectrum of cybercrimes, from identity theft to unauthorized data access. This law is a game-changer because it means that anyone who tries to mess with our online presence can be legally challenged.

More than just penalizing cybercriminals, this law is a shield for our personal data. Cybercrime laws punish wrongdoers and ensure our personal details, which we share so freely online, are protected. This sense of security is invaluable in the digital world we navigate daily.

What do the Philippines Laws on Cybercrime do:

• Tackles a range of cybercrimes, including identity theft.
• Ensures unauthorized access to personal data is penalized.
• Offenders can face fines and imprisonment.

Role Of CICC In Cybercrime Management

The Cybercrime Investigation and Coordinating Center (CICC) is like the strategic mind behind our country’s fight against cybercrime. They’re enforcement, preventing cyber crimes, and educating us on safe online practices.

As an online shopper, it’s comforting to know that there’s a specialized body dedicated to ensuring our cyberspace is safe.

The CICC’s role in coordinating with various law enforcement agencies ensures a united front against cybercrime. Their commitment to raising public awareness about cybersecurity risks is vital, as it empowers us, the users, to be the first line of defense against online fraud and online shopping scams in Philippines.

What are CICC’s Important Roles:

• Develops national cybersecurity strategies.
• Coordinates with law enforcement for a cohesive approach.
• Raises public awareness about digital safety.

Global Anti-Scam Alliance Initiatives

The Global Anti-Scam Alliance (GASA) takes the fight against scams beyond our shores. It’s a global effort, bringing together knowledge and resources from all over the world to make the internet a safer place for everyone. As an avid online shopper, I feel more secure knowing that there’s a global network working to protect us against digital threats.

GASA’s role in promoting international collaboration and public education on scam prevention is pivotal. By sharing strategies and knowledge on a global scale, they enhance our collective defense against these ever-evolving online shopping scams in Philippines.

What are the Global Anti-scam Alliance’s Contributions:

• Facilitates worldwide collaboration against cyber scams.
• Educates the public globally on avoiding scams.

PNP-ACG’s Efforts Against Online Fraud

The Philippine National Police Anti-Cybercrime Group (PNP-ACG) is our frontline warrior against online fraud. They specialize in enforcing our cybercrime laws, delving into investigations, and ensuring that the digital culprits are brought to justice. Their efforts are crucial in keeping our online marketplaces and transactions secure.

But it’s not all about catching the bad guys. The PNP-ACG also focuses on educating the public about the risks of online fraud. This approach is vital in a country like ours, where the digital economy is booming. It’s reassuring to know that there’s a dedicated team looking out for us.

PNP-ACG’s Key Actions:

• Actively investigates and prosecutes cybercrime.
• Informs the public on how to avoid online fraud.

International Cooperation In Cybersecurity

In tackling cybercrime, international cooperation is indispensable. Cyber threats don’t recognize national borders, so working together globally is essential. The Philippines, by sharing intelligence and best practices with other nations, strengthens its defenses against these digital dangers.

This kind of collaboration boosts the Philippines’ ability to respond effectively to cyber threats. By partnering with other countries and international organizations, we’re not just safeguarding our nation; we’re contributing to a safer global digital community.

International Cybersecurity Collaborative Efforts:

• Shares valuable cyber intelligence and practices with other nations.
• Strengthens the global response to cyber threats.

Who Can Help Online Shopping Fraud Victims In Philippines?

As an avid online shopper in the Philippines, I’ve seen my fair share of scams and understand the importance of having a strong support system. Let’s dive into the various support systems and assistance available for those affected by online shopping scams in Philippines, ensuring you’re not alone in this journey.

Counseling And Support For Scam Victims

Experiencing a scam can leave you feeling shaken and vulnerable. Counseling and support services play a vital role in helping victims recover from this trauma. While there may not be specific counseling services exclusively for scam victims, general mental health support can offer a space to process your emotions and regain confidence.

Community support groups, both online and offline, are also invaluable. They provide a platform to connect with others who have experienced similar situations, offering comfort and advice. Sharing your story and hearing others’ experiences can be incredibly therapeutic and empowering.

Legal Recourse For Scam Victims

If you’ve been scammed, you have legal options to explore. The Philippine National Police’s Anti-Cybercrime Group (PNP-ACG) is well-equipped to handle cybercrime cases.

Reporting the scam to them can be the first step in seeking justice. The National Bureau of Investigation (NBI) with its Cybercrime Division also plays a crucial role in investigating online fraud.

Consulting with legal professionals specializing in fraud and cybercrime can provide clarity and guidance. They can help you understand your rights and navigate the complex legal process, offering a chance to potentially recover your losses and prevent others from being victimized.

Financial Assistance And Refund Processes

Financial recovery is often a top priority for scam victims. While specific financial assistance programs may not be widely publicized, reporting the scam to relevant authorities can sometimes lead to financial recovery avenues. Authorities can offer guidance and assist in retrieving stolen funds.

Contacting your bank or payment platform immediately is crucial. They can often help reverse unauthorized transactions or freeze accounts to prevent further losses and provide advice on securing your accounts against future scams.

Community Support Networks

Finding a community of support after a scam can be a beacon of hope. Community support networks, be it online forums or local groups, offer much-needed emotional and practical support. They can be a source of shared experiences, advice, and solidarity.

Participating in community discussions and workshops on scam awareness can empower you and others to recognize and avoid potential scams. It’s about building a collective defense against online fraud.

Role Of NGOs In Victim Support

NGOs play a significant role in supporting online shopping scam victims. While there might not be many organizations specifically for scam victims, those focusing on consumer protection, legal aid, and mental health can offer substantial assistance. They can guide you through the recovery process, provide emotional support, and help you understand your legal rights.

Engaging with NGOs can open doors to various forms of support, from legal advice to counseling services. They often have the resources and networks to assist victims in navigating the aftermath of a scam.

My Take On Types Of Online Shopping Scams In The Philippines

The online shopping scams in Philippines we’re facing right now are an eye-opener. These scams are sneaky, and they’re not only about grabbing our pesos. They hit where it hurts – our trust in online shopping

Just like you, I’ve been lured by those flashy ads for super cheap gadgets or those emails that seem like they’re from a legitimate bank. But I’ve learned the hard way that if it seems too good to be true, it probably is.

We gotta be sharp and check everything twice. It’s all about looking out for those little red flags, like a weird website address or an email that just doesn’t feel right.

And here’s the good part – we’re not fighting these scams alone.

There’s a whole bunch of people and groups ready to help if we get caught in a scam. Need legal advice? It’s out there. Want to talk to someone who’s been there, done that? There are groups and forums for that.

Remember to learn from each other and stay one step ahead of those online shopping scammers. So, let’s keep enjoying the perks of online shopping in Philippines, especially those sulit online deals, but let’s do it smart and safe. Stay alert, stay informed about the latest online shopping scams in Philippines, and hey, let’s look out for each other out there in the digital marketplace.