You’ve found a great deal on something at an online store, but when you try to check out, the site tells you that your card has been declined. What do you do?
If you’re like a lot of people, you might try to enter the same card numbers again. When that repeats the error, you might try a different card. And a third, if that one is declined.
Here’s the problem: scammers are taking advantage of online shoppers this season and setting up fake websites to steal credit and debit card information from victims multiple times.
How It Works
First, the scammers set up a fake online store. With the availability of cheap and easy-to-use web hosting and domain name registration, this part isn’t too difficult.
Then, they place ads on social media platforms, such as Facebook, Instagram or TikTok, to lure potential victims to the site. The sites will offer good deals on popular items, the kind of thing that’s hard to pass up this time of year.
The fraudulent website will have a “Checkout” page that saves your card information, but throws up a “Card Declined” error in hopes that the victim will enter a second, third or even fourth card into the site. This allows them to double-dip (and beyond) each victim's money or credit.
Finally, the stolen card data is quickly used to drain funds from the victim’s accounts.
How to Avoid It
First, be extremely cautious about clicking any advertisements that show up on platforms like Facebook, Instagram, or others. You might assume that these ads are vetted before they run, but it’s easy to get a fraudulent ad through.
Before you purchase anything on an unfamiliar website, do a web search to find out a little more about the seller. Are other people saying it’s a scam? Are there reports of issues with fraud? Is the actual site itself the only web search result? Does it show up on the BBB Scam Tracker?
Finally, even if you’re sure the site is safe, if there is no option for Apple Pay or Google Pay, use a credit card rather than your debit card. It’s no fun to have a card compromised, but a credit card at least puts a buffer between the fraud and your supply of cash.
If you do get a “card declined” error, STOP. Don’t enter a different card; check your account online, or call the card issuer, to find out if a charge was declined, and why. If nothing came through, or if charges for the wrong amount hit your account, you’ll likely have to close the card and have a new one issued.
