In recent years, a prevalent scam known as the “Clearance Sale 90% Off” has been running rampant across social media and e-commerce platforms. This fraudulent scheme aims to trick unsuspecting shoppers into purchasing heavily discounted products that ultimately never arrive or are not as advertised.
This article will provide an in-depth explanation of how the “Clearance Sale 90% Off” scam operates, including a detailed overview of the scam tactics, how victims are targeted, what happens when purchases are made, and most importantly, what steps you can take to avoid falling prey. With online shopping more popular than ever, awareness about this scam is crucial to help protect consumers.
This Article Contains:
Scam Overview
The “Clearance Sale 90% Off” scam is essentially a bait-and-switch operation disguised as an unbelievable clearance sale from an online retailer. Scammers create fake e-commerce websites and advertise major discounts on expensive items like electronics, designer clothing, and shoes, hoping the extremely low prices will entice shoppers to make a purchase.
Common red flags of the “Clearance Sale 90% Off” scam include:
- Recently registered domain names – Many scam sites use newly created domains often registered for 1 year or less. This helps avoid detection.
- No company information – Scam sites lack any verifiable company details, address, or contact information aside from an email.
- Unrealistic discounts – Prices up to 90% off are used to lure shoppers despite being unrealistic for legitimate retailers.
- Generically designed sites – Most scam sites reuse the same template and layout with little unique content.
- Aggressive sale slogans – Phrases like “limited time only” or “sale ending soon” create false urgency.
- Stolen product images – All product photos are typically stolen from other online stores.
- No social media presence – Scam sites have no Facebook page, Instagram, Twitter, or other social media aside from ads.
- Broken English text – Scam sites often contain spelling/grammar errors and other signs of translated text.
The end goal of the scam is to collect payment while providing nothing in return. At best, victims may receive a low-quality knockoff product far inferior to what was pictured. However, most purchases through “Clearance Sale 90% Off” scams result in no product delivery whatsoever.
How the Scam Works
Scammers rely on a variety of deceptive tactics to successfully pull off the “Clearance Sale 90% Off” scam across many unsuspecting victims. Here is a step-by-step overview of how this scam typically operates:
Baiting Shoppers with Social Media Ads
The first step for scammers is creating eye-catching social media ads promoting clearance sales with extreme discounts on expensive items like iPhones, Rolex watches, or Dyson vacuums. These ads are targeted to the demographics most likely to purchase these types of products. The unrealistic low prices create intense urgency and entice users to click through to the e-commerce website out of FOMO (fear of missing out).
Directing Traffic to Elaborate Scam Websites
Once clicked, the social media ads will redirect users to elaborate scam websites where scammers can begin closing the sale. These sites are designed to look like legitimate online stores with product images, categories, shopping carts, and checkout processes. However, a closer look reveals telltale signs of a scam, such as no company information, recently registered domains, stolen product photos, and contact forms as the only customer service option.
Facilitating Rushed Checkout with False Scarcity
The scam websites create a false sense of scarcity and urgency to purchase using several deceitful techniques. Countdown timers, “limited quantity!” badges, and banners urging shoppers to act fast before the sale ends are intended to panic browsers into buying before stopping to verify the site’s legitimacy. Fake testimonials and claims that “X number of people are viewing this product” also contribute to the high-pressure environment.
Collecting Payments While Evading Detection
During checkout, scam sites request wire transfers, gift cards, cryptocurrencies or other irreversible payment methods that offer no fraud protections for the buyer. This enables scammers to accept payments while evading detection from banks or payment providers that might shutdown accounts linked to fraudulent activity. Victims will receive a fake confirmation email after completing the transaction, but no actual order is fulfilled since the “retailer” does not exist.
Executing the Bait-and-Switch
In rare instances when an actual product is shipped after payment, victims will receive a cheap knockoff product far inferior to what was pictured and described online. For example, a purported iPhone will instead be a cheap Chinese-made smartphone with an Apple logo stuck on. This bait-and-switch fulfills the minimum requirement of shipping “something” after payment, allowing scammers to skirt potential fraud allegations while still effectively stealing buyers’ money.
Avoiding Accountability through Anonymity
Scammers undertake great efforts to remain anonymous throughout the entire process. Fake business names, stolen identities, and untraceable domain registrations prevent victims from pursuing accountability for fraud. Since scam sites disappear quickly once detected, contacts provided are useless, and payment methods offer no recourse, victims have almost no options for recovering lost money or holding scammers responsible.
By following this highly refined playbook, “Clearance Sale 90% Off” scammers are able to repeatedly dupe online shoppers out of millions with virtual impunity. Their expertise in evasion enables them to operate out in the open while avoiding repercussions.
How to Spot This Scam
While scam sites appear convincing at first glance, several red flags can help identify their fraudulent nature:
Check for a Legitimate Domain Name and Company Details
- Fake sites often have domain names with odd spellings, extra words or use popular brand names. Search the company name online to confirm they are real.
- Check that a physical business address, working customer service phone/email are provided. Lack of real contact details indicates a shady seller.
Look for Overly Good-to-Be-True Deals
- Scam websites lure customers by advertising extravagant discounts of 50-90% off or deals well below market prices. Real businesses cannot sustain such heavy losses. If the deal looks too good to be true, it likely is.
Verify Company Reputation
- Search the website, business name and owner names online for any negative reviews or scam reports. Check with BBB, TrustPilot and complaint forums to see their reputation.
- No social media presence and zero signs of real customer activity on review sites signal likely frauds.
Analyze Site Security and Payment Options
- Ensure sites connect with SSL encryption and have guaranteed refund policies. Unsecured sites should not handle payments or sensitive data.
- Scam websites tend to only take irreversible payments like wire transfers, gift cards, cryptocurrency and avoid credit cards with stronger fraud protections.
Spot grammar errors, plagiarized policies, limited products
- Fake sites lack effort invested into proper grammar and original legal policy writing seen on established businesses.
- Very limited product selections avoiding common best-selling items categories also indicates pop-up scams.
Carefully applying these warning signs allows shoppers to expose scam retail fronts seeking solely to exploit rather than serve legitimate customer bases built on accountability and trust.
How to Spot This Scam on Social Media
In tandem with operating entirely fake e-commerce storefronts, retail scam websites heavily leverage sponsored social media ads promoting unbelievable yet highly compelling deals up to 90% off across product ranges in attempts to lure target audiences.
Highly deceptive posts explicitly screaming too-good-to-be-true price cuts frequently overrun Facebook feeds, Instagram stories and TikTok streams with aims of deceiving deal-seeking shoppers. However, certain patterns across these advertisements expose their underlying deceitful intentions.
Spotting Fraudulent Facebook Ads
Beware of too-good-to-be-true deals in Facebook ads like “90% off” or “Free Shipping” that entice people to shop. Scammers know how lucrative Facebook’s 2 billion users can be. Warning signs of a scam Facebook shopping ad:
- Extreme discounts such as “Store Closing Sale” or “Going out of Business” that seem suspicious for a newly created page. Legitimate businesses usually don’t heavily discount new inventory.
- Language and grammatical errors or inconsistencies throughout the ad or website. This signals the scammers likely quickly generated the content.
- Generic stock images of products rather than real images. Or images with watermarks that the scammer likely didn’t have rights to use.
- Very recent Page creation date shown under the Page name. Scam sites don’t last long before users report them or Facebook removes them.
If an ad or Page sets off warning bells, search for reviews of the website before purchasing. Or reverse image search any product photos to see if they were stolen from another site. Don’t support scammers taking advantage of Facebook users.
Spotting Fraudulent Instagram Ads
Scam online shopping sites try luring Instagram users with attention-grabbing captions like “Limited Time Offer!” and enticing prices such as “Today Only $39”. But is the Instagram shop legit or a scam? Signs to help determine:
- The account has very few posts and followers. Scams setup disposable accounts that get deleted once reported.
- Check user tags on the posts. If real people aren’t shown wearing or using the products, that’s a major red flag.
- Tap on the shop link in the bio. If there’s no HTTPS or SSL certificate, it’s not secure to enter payment information.
- Reviews seem fake or non-existent. Scam sites don’t have much satisfied customer proof.
- Limited or vague return policy information. Or difficult channels to request a return.
Trust your instinct if an Instagram shop seems fishy. Check independent review sites first before buying through an unknown seller advertising on Instagram. Protect your personal and payment information entering it only on secure sites after verifying legitimacy.
Catching Fake TikTok Ads
Scam TikTok shopping sites try attracting traffic using compelling videos showcasing unbelievable deals. But amazing discounts and prices may bait unsuspecting TikTok users into a scam. Be wary of:
- Links in the caption or videos bringing users to store sites no one’s heard of. Scammers setup temporary sites that won’t be around long.
- No blue checkmark verification badge on the account. This signals TikTok hasn’t authenticated the authenticity of the seller.
- Prices drastically slashed with countdown timers pressuring purchase decisions. Scare tactics rush rational judgement.
- No reviews or evidence showing real customers enjoying the products. Easy with video testimonials to fake satisfaction.
Check comment sections on TikTok scam shopping site videos for warnings from others getting duped. When prices seem too good to be true, they most likely are. Verify legitimacy before handing payment info to unknown sellers promoting on TikTok videos. Your security comes first.
What To Do If You Are A Victim
If you have fallen victim to this scam, you should take immediate action to protect yourself and your money. Here are some steps that you can take:
- Contact your bank immediately – Alert your bank to disputed charges and consider canceling your card to prevent further fraudulent purchases.
- Keep records – Save receipts, emails, screenshots, and any details related to the transaction. This provides proof of the scam.
- File a complaint – Report the fraud to the FTC and Internet Crime Complaint Center. Provide any relevant records.
- Leave online reviews – Post details of the scam on consumer review sites to warn others. However, don’t defame legitimate businesses.
- Report social media accounts – If the scam involved social media, report the accounts to get them removed.
- Reverse payments – If you paid with a credit card, request a chargeback. For wire transfers, contact the recipient bank to possibly reverse it.
- Check credit reports – Request credit reports to check for any accounts opened fraudulently using your information. Consider placing a credit freeze if needed.
- Reset account passwords – Change passwords on any online accounts that used the same login credentials entered on the scam site.
- Check your device for viruses – Run a Malwarebytes Anti-Malware Free scan to check for any malware that may have infected your device through the site.
- Learn from the situation – Study how you were deceived so you can avoid other scams in the future.
Being vigilant against shopping scams and acting quickly when scammed can help limit financial and identity theft impact. Report it to help authorities investigate and shutdown scam sites that are still active.
Frequently Asked Questions
What is the “Clearance Sale 90% Off” scam?
This is a fraudulent shopping scam where victims are baited with unbelievable discounts through social media ads. The ads link to fake shopping websites that convince victims to purchase items that never arrive or are very low quality knockoffs.
How do they promote the scam?
The scammers run ads on social platforms like Facebook and Instagram promoting hot deals on expensive items. The ads use pressure tactics insisting offers are only available for a limited time. This creates urgency to click through and make a purchase.
What happens after I place an order?
Most victims either receive nothing after payment, or a cheap knockoff version of what was ordered. Getting in contact with the fake company is virtually impossible due to lack of valid contact information.
How can I identify these scam websites?
Warning signs include unrealistic discounts, recently registered domain names, stolen product photos, no contact details beyond an email, too-good-to-be-true testimonials and no social media presence.
Can I get my money back if I fall for this?
If you used a credit card, report the fraud to the card issuer immediately. Providing evidence of the scam can help secure a chargeback. Reporting the incident can also help shut the scam operation down to prevent future victims.
Is this scam really that widespread?
Yes, these scammers operate large networks of fake sites and assets out of China. As soon as one site goes down, dozens more stand ready to replace it. The scam persists due to the coordinated scale and constantly evolving tactics.
How can I avoid falling for this scam?
Always research unfamiliar sites thoroughly and watch for warning signs before making a purchase. Only buy from reputable retailers that can be verified through reviews, transparent contact info and social media presence. If a deal seems too good to be true, it always is.
What should I do if I fell victim to this scam?
Immediately contact your bank and report the incident to the FBI IC3, FTC and BBB to limit damages and help authorities identify the scammers. Warn your social connections to prevent others from being targeted.
Conclusion
The “Clearance Sale 90% Off” scam offers important lessons about vital precautions shoppers must take in today’s e-commerce landscape to avoid deceitful schemes. With the right awareness, these deceptive scams can be easily recognized and avoided.
Be skeptical of websites lacking company information, contact details, or social media presence outside of ads. Look for signs of fake urgency and limited-time deals designed specifically to bypass better judgement. And most critically, remember that if an online deal seems too good to be true, it almost always is.
The safest online retailers provide ample contact information, certified reviews, reasonable prices, and clearly advertised return policies. Taking your time to research prior to purchase may mean occasionally missing out on deals, but it certainly beats losing your money to criminal scammers hiding behind enticing clearance sale advertisements.
Stay vigilant about protecting your personal and financial information by following smart online shopping practices. At the first sign of potential fraud, cease all engagement with the seller. If you do fall victim to an online shopping scam, act quickly to have unauthorized charges reversed, report the crime, and monitor your identity and accounts closely over the following months.
While the crooks running “Clearance Sale 90% Off” scams may seem sophisticated in their deception, an aware shopper has all the power to stop these frauds in their tracks. Spread the word about these sneaky scam sales so consumers can take back control and shop online both safely and confidently.
