BBB Scam Alert: How to spot an out-of-stock scam before losing money

Milwaukee, Wis. – With the holiday shopping season nearing its close and buyers wanting to get gifts delivered on time, there’s a crafty online shopping con being reported to BBB Scam Tracker. Scammers claim a product you purchased is out of stock, but they never process your promised refund.

How the scam works

You see a product online that you want to purchase (shoppers report encountering this scam through social media ads.) You click on the link to the company’s website, find the product, and check out. Shortly after your card is charged, you receive an email saying the product is out of stock and they will refund your money. You wait several days for the refund to post to your account, but it never does. Then, when you try to contact the online shop, no one responds.

One consumer reported to BBB Scam Tracker in December 2024, “I saw the ad of this company for a wet t-shirt and I ordered that, after waiting for 2 months with poor contact from the team, they said “they were out of stock“, finally they sent it and the package was lost. They sent me a second as a replacement and it was not the t-shirt I ordered, I contacted them and they haven’t respond my email nor social media post. Scam!”

Another shopper told BBB Scam Tracker, “The order went through and money was taken out of my account. After more than a week of long wait for my order to ship, the order got canceled (saying the size ordered was out of stock) and the money was never returned to my account.”

The truth is, the product likely never existed in the first place, and scammers hope you’ll never notice you didn’t get your refund. However, if you used a credit card, you should be able to contest the charge and get your money back.

How to avoid online shopping scams

• Research before you buy. Always research businesses before you purchase, especially if you aren’t familiar with the company. Read consumer reviews on other websites and do a quick online search for the business name along with the word “scam” to rule out any suspicious activity spotted by other consumers.
• Watch out for social media scams. Con artists love using social media to promote their scams. Some red flags include deals that seem too good to be true, phony personalized products, fake coupons, and product links that lead to questionable websites.
• Make sure the website is secure. Don’t make purchases from a website that isn’t secure. How can you tell if a website is secure? It should have a tiny lock symbol in the browser bar and start with HTTPS, not just HTTP.
• Keep records of your purchase. Keep receipts, order confirmations, and any other correspondence you have with a company that has promised to deliver a product. These documents will come in handy later if you need to contest the purchase.
• Use your credit card. It’s always best to use your credit card instead of a debit card to make online purchases. Credit cards offer more protection if you need to report a fraudulent charge.

For more information

Before shopping online, review the BBB Tip: Smart shopping online and our online shopping hub for more information on staying safe. See BBB’s holiday tips for more advice. If you spot a scam while shopping online, even if you don’t lose any money or information, report it to BBB Scam Tracker. Your report can help other consumers to recognize the signs of a scam.

Subscribe to BBB’s weekly Scam Alert emails.

View the online version

For more information or further inquiries, contact the Wisconsin BBB at www.bbb.org/wisconsin, 414-847-6000 or 1-800-273-1002. Consumers also can find more information about how to protect themselves from scams by following the Wisconsin BBB on Facebook, Twitter, Instagram and YouTube.

ABOUT BBB: The Better Business Bureau has empowered people to find businesses, brands, and charities they can trust for over 110 years. In 2023, people turned to BBB more than 218 million times for BBB Business Profiles on 5.3 million businesses, and 80,000 times for BBB charity reports on about 12,000 charities, for free at BBB.org. The International Association of Better Business Bureaus is the umbrella organization for the local, independent BBBs in the United States and Canada.

NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.