Ecommerce fraud isn’t just increasing. It’s evolving. The most common types of fraud are still card-not-present, and chargeback fraud, but bad actors are constantly advancing their methods. The online world has no boundaries or limitations. Things are constantly changing, fast-paced, and competitive. With tools like wallets, mobile apps, cryptocurrency, and supposedly fully-automated eCommerce stores, there are many new ways that people can get caught up in an ecommerce or online scam. Here are some of the most important things to know about eCommerce scams, especially the newest “get rich quick” making the rounds – the eCommerce “store” automation scam.
What People Need To Know/Do To Avoid eCommerce Store Automation Scams
Today, certain influencers and companies have taken to social media, i.e. facebook, Instagram and Tik-Tok to tout e-commerce as the panacea to the non-lucrative boring jobs or careers. A five-minute scroll on Tik-Tok will reveal at least one ‘ad’ where the influencer will excitedly spout: “In the next 30 seconds, I will tell you how to change your life and find your new career. Click my bio to find out more!” Who wouldn’t find out how you can become the next billionaire. And when you look into it, you learn the company will set-up, identify your product, manage and maintain your very own store. “In no time you will be on your way to being independently wealthy by joining the world of receiving passive income!”
And admittedly, there is an allure to having an eCommerce automation agency do all the work for you that attracts people to their “do-it-for-you” business model. The thought of passive income generating up to $5,000 to 10,000 a month is an immensely powerful tool. Even with many negative reviews online, individuals are still paying initial investments of up to $40,000+ to eCommerce store management agencies. And that is for starters. After the initial investment, the customer is then responsible for a high percentage of their potential profits and ongoing “monthly management fees”. And to boot: These fees and the purchase of the products are done via the manager’s access to the investor’s credit card.
Before making an investment or purchase with any online eCommerce store agency, it is worth the time to investigate the agency via online review services and by reaching out to previous clients. Any great service provider should have past clients willing to put in a good word for them.
If the eCommerce automation agency you are interested in working with is asking questions like the ones below, let it be your first sign of not working with them. Any company making those demands doesn’t have your best interest. An eCommerce automation investment of that type would make it extremely difficult for you to recuperate your initial investment within a reasonable time. That doesn’t take into account the hit your credit would take if the agency leaves you high and dry.
Example Questions an Ecommerce Scam Artist May Ask You:
- If you were ONE HUNDRED PERCENT committed to our team creating a Done-for-You Amazon business, how much CASH + CREDIT could you get access to total (including all your resources)? A. Less than $30,000 B. $30,000-$50,000 C. More than $50,000
- What is your Net Worth? (Value of ALL your assets COMBINED, e.g., Equity in Your Home, Cars, Cash, Investments)
Be Careful – It Is YOUR Money They Are Playing With
When starting an automated eCommerce store, the best approach is to slow things down. The automation agency may not care, but you do, so do your due diligence and put yourself in the best possible situation for long term success.
First, have them explain why they are asking for so much money upfront and have them provide you with a detailed list of where your money will go. Second, find out what percentage of the profits the eCommerce management agency is asking. And third, ask for a copy of their contract. Review the details and be careful of language concerning “non-refundable” investments.
For instance, some eCommerce management agents will ask for a 50% share on top of paying the sales channel and yourself, leaving you with very little profit margin. Agreeing to a 50% split with your eCommerce agent makes it extremely difficult to build a profitable business – especially the kind they sell you during your initial call. Third, any eCommerce automation agency claiming you can “quit your day job” and “retire” from one store in only thirty-six to forty-eight months while earning a passive income of $5,000 to $10,000+ per month is a serious red flag. The old adage “If it is probably too good to be true then it isn’t” appears to apply when it comes to eCommerce Stores.
And lastly, a trustworthy company is transparent about its business and fees. We want you to determine for yourself or with our help if this is an excellent opportunity. If any automation eCommerce management agencies you are planning on working with attempt to hide upfront costs, ongoing fees, credit card payment schedules, product returns, or are unwilling to explain how their customer support process works, run – don’t walk – the other way. If the agency is unwilling or unable to answer the questions in detail before you pay for their services, you might be able to guess how their service will be after you pay.
What To Do If You Believe You Are A Victim Of An Ecommerce Store Automation Scam
By performing some of the basic checks above, you can save yourself a lot of headaches, money, and wasted time. However, none of these actions are foolproof and you should act immediately and contact an attorney if you suspect you have been the victim of any type of fraud or eCommerce Store scam. An attorney can help you navigate the aftermath and contact the appropriate state and federal agencies and attempt to recover your money via a demand and, if necessary, lawsuit.
It is traumatic to discover that you have been scammed by an automation eCommerce Store agency. Promises of a fast path to a growing business or great opportunity got your attention and you are struggling with how to get the situation corrected. The attorneys at RSN Law have represented clients dealing with many types of fraud. Our firm can help you report the fraud and handle the details required to blunt the potential damage from a scam. RSN attorneys can represent you in pursuing full restitution and restoring your good name and financial standing. Contact the experienced attorneys at RSN Law today at 480-712-0035 to schedule an initial consultation or make an appointment on our contact page.
RSN Law intends this article to be for informational purposes, not to be relied on a specific legal matter, and does not create an attorney-client relationship.