It can happen when you least expect it — you’re ready to finalize a purchase, and suddenly you get a message that your credit card is declined. It could be a valid warning, but if you’re shopping online, an error or “card declined” message may also be a sign of a new twist on online shopping scams.
BBB Scam Tracker has received reports from shoppers who have received fraudulent charges on their financial accounts after facing “card declined” messages when attempting to make online purchases. AAA has also recently warned consumers about fraudulent emails promising a free emergency kit, noting that consumers received similar “card declined” error messages, and yet they were still charged.
Here’s how it typically works:
You find something you want to purchase from an online retail website, or you receive an email from what you believe is a reputable business, offering a discounted item. As you proceed to make your purchase, you enter your personal information, including your email address, phone number and shipping address.
When you get to the payment page and enter your credit card or debit card number, the website warns you that your card was declined or gives an error message that says: “Your card did not go through.” This is unexpected, and likely prompts you to try the card again or enter another card for payment.
If you’re being pulled into this online shopping scam, you’ll likely receive the same error message again. If you call your bank or credit card company to ask about the declines, that’s when you’ll learn that your cards have not been declined; instead, you’ve been charged more than you anticipated for the purchase.
Several people have reported similar experiences to BBB Scam Tracker.
In one example, the shopper shared, “I attempted to purchase a water bottle for my son. The website declined my initial transaction, so I attempted it with a different credit card, which was also declined. I then asked my husband to try … and it was declined for him as well … each of these three payment methods … all had fraudulent charges pop up.” This family reported losing $200.
In another example, an individual reported, “I proceeded to make a purchase on the website, and after I entered my credit card information, the website reloaded and said to use a different card because ‘the card did not go through for some reason.’ I retried with the same card and obtained the same error message. However, I got an alert from my card company almost instantly that the charge for $2,500 was declined … I did not attempt any such charge of $2,500 … Now my personal email, address, phone number and credit card account number have been exposed.”
Your BBB offers the following tips to help you avoid similar online purchase scams:
— Verify you’re shopping on a legitimate website. Scammers build fake, lookalike websites to trick shoppers into thinking they are buying from the actual business. Look closely at the URL (it may be off by a letter or two) and check that the website is secure by verifying you see the “https://” in front of the URL.
— Watch out for fake emails, texts and ads. Scammers love impersonating businesses in fake emails, text messages and social media advertisements. Don’t trust unsolicited messages and always verify links before clicking on them. When in doubt, delete the message or ignore the ad and visit the business’s website on your own instead of clicking the links.
— Don’t be fooled by great offers. Prices that seem too good to be true often are. If you’re unsure about purchasing from a business, shop around with other retailers to compare the pricing of the product you want. Get an idea of the actual price of the product. You may be able to find the product at a trustworthy retailer (such as a BBB-accredited retailer) and feel more comfortable making your purchase.
— Research the business. Before purchasing, look up customer reviews online and search the business on BBB.org. Look for the BBB seal to verify if the business is BBB-accredited. If you think it may be a scam, search on BBB Scam Tracker.
— Use a credit card for extra protection. If you plan to make a purchase, use a credit card. Credit card companies offer additional protection against fraud, and you should be able to dispute any unanticipated charges on your account.
— Check up on your credit and debit card protections. There’s never a wrong time to talk with your bank and credit card company to confirm what protections you have on your cards. You can set purchase limits and travel restrictions and sign up to get notified when purchases are made at any dollar amount.
SHRED DAY
A proactive step toward protecting your identity is to safely shred unneeded documents or hard drives that contain personally identifiable information and banking information. You can do this for free at BBB’s next Shred Day.
The bi-annual event will be held from 9 a.m. to noon in the parking lot of Coca-Cola Bottling Co., located at 2111 W. Shepherd Road in Chattanooga. (Location is near Exit 1A/Airport off Highway 153).
Documents will be shredded onsite by River City Shredding, and hard drives will be destroyed and safely disposed of by Resource 1 Tier 3 Data Security, both BBB-accredited businesses. Resource 1 Tier 3 Data Security will also accept electronics such as computers, laptops and flat screen monitors for recycling. Outdated or unneeded prescription drugs can be dropped off for safe disposal by Hamilton County Coalition.
Please limit documents to three large trash bags per person and limit hard drives to four per person. For more information, please visit bbb.org/Chattanooga or call your BBB at 423-266-6144 and press #6 on our main menu.
Thank you to our event partners: Resource 1 Tier 3 Data Security, Hamilton County Coalition, River City Shredding, Chattanooga Times Free Press, Coca-Cola Bottling Co., Cumulus Media Chattanooga and First Horizon Bank.
Michele Mason is president of the Better Business Bureau in Chattanooga.