How to spot an out-of-stock scam before losing money

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 you want to purchase (shoppers report encountering that scam through social media ads). You click 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.

In a recent BBB Scam Tracker report, one person said, "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 use 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 on www.BBB.org 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. BBB-accredited businesses have agreed to abide by the BBB Standards, so look for the BBB Seal: It's The Sign of a Better Business.

—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. To tell if a website is secure, look for the tiny lock symbol in the browser bar and make sure it starts 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. Those 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.