A recent and particularly insidious tactic employed by fraudsters is the use of ‘card declined’ alerts to trick consumers into revealing sensitive financial information.
According to the Better Business Bureau (BBB), reports of this scam have increased, with victims losing hundreds to thousands of dollars.1
As online shopping continues to grow, it’s more important than ever for consumers to be aware of the red flags associated with these scams and take steps to protect themselves.
How the ‘Card Declined’ Scam Works
Scammers are becoming increasingly sophisticated in their tactics, creating fake websites that closely resemble those of reputable businesses.
Customers are prompted to enter their personal and financial information when attempting to make a purchase on these fraudulent sites. Once the data is submitted, the website displays a ‘card declined’ error message, leading the customer to believe their payment didn’t go through.
The scammer has already charged the customer’s account, often for amounts far exceeding the intended purchase price.
Some victims have reported fraudulent charges ranging from $200 to $2,500. When the customer realizes what has happened, the scammer has taken their money and sensitive information.
Red Flags to Watch Out For
Being vigilant and aware of potential warning signs that may indicate a scam is crucial when shopping online. Here are some key red flags to keep in mind:
- Suspicious URLs: Before purchasing, look closely at the website’s URL. Scammers often create lookalike sites with slight variations in the web address, such as a missing letter or a different domain extension.
- Unsolicited emails or ads: Be wary of emails or social media advertisements leading to unfamiliar websites. Scammers often use these methods to lure potential victims to their fake sites.
- Too-good-to-be-true deals: If a product or service is being offered at a price that seems too good to be true, it probably is. Do some comparison shopping to ensure that the deal is legitimate.
Protecting Yourself from ‘Card Declined’ Scams
While it’s important to be aware of the red flags, there are also proactive steps you can take to safeguard your personal and financial information:
- Verify the website’s legitimacy: Research the business to ensure it is reputable before entering personal or financial information. Check for customer reviews and ratings on sites like the BBB.
- Use credit cards for online purchases: Credit cards offer additional protection against fraud compared to debit cards. If you fall victim to a scam, you’ll have a better chance of disputing the charges and getting your money back.
- Monitor your accounts regularly: Check your credit and debit card statements for suspicious activity. If you notice fraudulent charges, report them immediately to your bank or credit card company.
What to Do if You’ve Been Scammed
If you suspect that you’ve fallen victim to a ‘card declined’ scam, take action quickly:
- Contact your bank or credit card company to report the fraudulent charges and request a new card.
- File a report with the BBB’s Scam Tracker to help warn others about the scam.
- Consider placing a fraud alert or freeze on your credit report to prevent further unauthorized activity.
As online shopping grows in popularity, it’s crucial to stay vigilant against emerging scams. By being aware of the ‘card declined’ scam and protecting yourself, you can shop confidently and avoid becoming another victim.
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Nancy Maffia
Nancy received a bachelor’s in biology from Elmira College and a master’s degree in horticulture and communications from the University of Kentucky. Worked in plant taxonomy at the University of Florida and the L. H. Bailey Hortorium at Cornell University, and wrote and edited gardening books at Rodale Press in Emmaus, PA. Her interests are plant identification, gardening, hiking, and reading.
