Why Some Deals Are Too Good to Be True

Back in the day, people were tricked by snake-oil salesmen. Fast forward, and we’re seeing much more sophisticated scams on the rise. 

When you’re shopping for a Black Friday deal or buying gifts for the holiday season, you might come across a deal that seems too good to be true. And how can you tell if it’s real? Considering that Americans lost $2.1 billion to scammers in 2025 (according to the data from the Federal Trade Commission), it’s getting harder to spot scams these days. In particular, social media scams resulted in far more losses than any other type of scam. What’s interesting is that Facebook was the leading social media platform where people lost money, followed by WhatsApp and Instagram. 

If you don’t want to fall victim to these fraudulent deals, then read on to find out what red flags to look out for and the strategies you can use to identify and avoid them.

Types of Scams To Look Out For 

Counterfeit or fake designer brands. They could be made with low-quality materials that try to mimic the name brand. I remember one time my husband ordered a kitchen tool online and found out that it was from an illegal website, and the company used toxic materials to produce these goods. Luckily, he reported it to the credit card company, and they provided him with a refund. 

Fake websites that try to steal your credit card information are on the rise. What’s more, you think you’re making a purchase, but you’re left empty-handed because they don’t ship any products to you.

Fees that the seller isn’t upfront about. I recall finding a good deal on backup hard drives on a website. But then, when I tried to purchase it, they were quoting an absurd shipping fee. Since it was being shipped overseas, it would take weeks to arrive at my home. So, it wasn’t even a good deal at all. Needless to say, I ended up buying the hard drives at a local computer store instead. 

An ongoing problem is the circulation of fake bills. For instance, if you’re trying to sell a mobile phone or gently used designer clothes through an online marketplace, a buyer might offer to meet you in person. What ends up happening is that when they pay you cash, you may not even know that it’s a counterfeit bill until it’s too late. 

The Warning Signs 

Everyone wants to get a good deal from time to time. But cyber criminals also want to take advantage of unsuspecting shoppers who may be letting their guard down. Don’t let this happen to you. Here are several 

Text Message Scams

You receive a text message out of nowhere from a retailer, especially if you haven’t subscribed to receive their updates. In the message, you see a link for you to click on to redeem an offer. If there’s an urgency to act right away, you should be wary. It’s normal to feel pressured to react to a limited-time offer, which can trigger FOMO (fear of missing out). Do yourself a favor and don’t rush to send any payments. Take a deep breath first. Check if the domain link matches the official website. If it doesn’t, that’s a huge red flag. Also, it may ask you for a payment via non-secure or obscure methods (such as through cryptocurrency or to buy a gift card). This makes it challenging to trace, so it’s best to avoid that.

Investment Opportunities

You may have a favorite celebrity that you’ve been following on social media. Then one day, you see an ad or a sleek website where they are endorsing some type of financial product that seems like a great investment opportunity to make money “with low risk” or a guaranteed return. Another way is when someone sends you a direct message and encourages you to invest in a private fund or crypto opportunity. According to the Better Business Bureau, more than 80% of who were targeted with crypto or investment scams, reported losing money. 

Especially with AI technology advancing at an accelerated pace, these cyber criminals can create deepfake videos to make it look like it’s real. Beware of this deceptive tactic, as it’s likely a scammer impersonating this celebrity without their consent. 

Going-Out-Of-Business Sales 

Beware of fake liquidation scams where phony websites or social media pages are created to entice victims with deep discounts. They look very convincing to potential buyers. When you enter your payment information to buy a product or service, unfortunately, you don’t receive anything in return and the scammer now has your personal data. 

How To Protect Yourself From a Scam

To help you brush up on your sleuthing skills, here are several tips for identifying whether a deal is real or not. Some of these may sound like common sense (which they are), but it also serves as a good reminder to keep your guard up.

1. Before you click and order, it’s best to compare prices so you know that you’re getting the best deal. Don’t be hasty in buying the first deal you see. There are price-comparison apps to help you navigate retail stores from competitors.
   
2. Read the product reviews from customers to confirm whether the items are highly rated. If you dig through the testimonials, you may find bad reviews about the company’s website. This will be a good indicator of whether you should proceed with the purchase or abandon it if something smells fishy.
   
3. Contact the company or check their official website to verify that the deal is legitimate. Make sure you have the correct phone number or email address when reaching out to them.
   
4. Most credit cards these days offer some level of protection for your purchases. If you’ve been scammed, your credit card provider may offer you a refund. But if you choose to pay by cash or with your debit card, you may be out of luck to recoup your money.
   
5. If you end up with buyer’s remorse, in some instances (where there’s high-pressure sales tactics involved), you may be able to use the FTC’s Cooling-Off Rule to help cancel your purchase. 

FAQ

How can I tell if a website is legitimate?
Check that it’s a secure website (it should start with “https”, as the “s” shows that it’s secure). Also, look for a lock icon in the search bar of your web browser. You can also search for reviews online by typing in the website name along with the word “scam” in the search engine to find out if other consumers have reported issues. 

If I’m sending money to a company or a person’s email address, how do I know if they are real? 

You should hover over the email address and check the spelling. Sometimes it may have inconspicuous spelling changes or it may come from a gmail address rather than a company’s domain name. 

How do I know if a product is authentic or a knockoff?

If you’re buying a product online, it can be hard to tell whether the product is genuine. This could apply to clothing, handbags, shoes, and sunglasses. There are also “dupes” of toys and earbuds on the market. You also have to be careful when you’re buying cosmetics or perfumes that look similar to name-brand products but may contain low-quality or even toxic ingredients. 

Sources:

• https://www.consumerreports.org/shopping-retail/when-are-sales-too-good-to-be-true/ 
• https://www.rbcroyalbank.com/en-ca/my-money-matters/money-academy/cyber-security/understanding-cyber-security/5-too-good-to-be-true-scams-affecting-consumers-today/ 
• https://www.wcnc.com/article/money/online-shoppers-warned-deals-social-media-scams/275-2724a1ab-b726-4b45-bc44-3401f15ca231 
• https://www.allstateidentityprotection.com/content-hub/internet-scam-deals 
• https://www.nbc4i.com/news/investigates/better-call-4/ftc-fbi-issue-warnings-about-deals-that-sound-too-good-to-be-true/ 
• https://www.scientificamerican.com/article/phantom-costs-explain-why-some-deals-seem-too-good-to-be-true/#:~:text=Phantom%20costs%20can%20lead%20to%20people%20avoiding,for%20the%20deal%20can%20mitigate%20the%20effect 
• https://www.reddit.com/r/Frugal/comments/1q1givk/anyone_else_feel_like_too_good_to_be_true_deals/ 
• https://www.ftc.gov/news-events/news/press-releases/2026/04/new-ftc-data-show-people-have-lost-billions-social-media-scams 
• https://bbbmarketplacetrust.org/riskreport/  
• https://www.inta.org/fact-sheets/counterfeiting-intended-for-a-non-legal-audience/ 

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