E-commerce: online shopping is on the rise. So is fraud

More and more people in Europe are shopping online: in 2018 the figure was 66 per cent, and by 2025 it is set to reach as high as 78 per cent. However, as e-commerce has expanded, so too has fraud: in 2024, around 45 per cent of EU consumers fell victim to it. This is according to the study ‘Fraud and Fake Online Shops’, carried out for the European Parliament at the request of the Committee on the Internal Market and Consumer Protection.

The research, published in July, explains that around 66 per cent of those who fell victim to scams had come across fake reviews, whilst 61 per cent had noticed that the discounts on offer seemed too good to be true. In Italia, according to the report, one in five people had been victims of scams whilst shopping online: documented losses in the first half of 2024 are said to have reached 114 million euros, representing a 71 per cent increase compared with the previous year.

The scam, the study explains, consists of two stages: first, the consumer’s attention is captured, and then the sale is completed, which, in various ways, turns out to be fraudulent. There are countless ways in which each of these two stages can be carried out, leading to a multitude of possible combinations: every scam, so to speak, is one of a kind.

As regards the first step – attracting the consumer – there are at least three methods: fraudsters can create a false identity, perhaps by cloning the online shop of a genuine, reputable brand. They can also generate traffic to their own website by exploiting the potential of the internet, for example by manipulating search results and using deceptive spam campaigns. Alternatively, customers may be persuaded to complete a purchase by removing various obstacles: extremely high discounts are offered to reduce the cost, reviews are manipulated to project a trustworthy image, or misleading guarantees are included in the terms and conditions of purchase.

Once the sale has been completed, the scam enters its second phase, which in turn can take at least three forms. Firstly, it is possible that returns may be prohibited and that, at the same time, no refund is provided. The credentials used to make the payment may also be stolen. These operations fall under the umbrella of financial loss and the inability to return what has been purchased.