5 “Too-Good-To-Be-True” Scams Affecting Consumers Today

With the cost-of-living rising, the price of exclusive merchandise soaring, and online shopping now second nature, consumers are on the lookout for bargains. Unfortunately, cyber criminals are just as eager to cash in on that mindset.

While there are legitimate deals out there – particularly as the holiday season approaches – there are also plenty of scams. Many of these cons look legitimate at first glance, often mimicking trusted brands or local stores.

Here are five trending “too-good-to-be-true” scams, red flags to watch out for, and how to stay cyber safe.

1. Fake business liquidation scams

There’s nothing like a “going out of business” sale. Deep discounts and limited-time offers make these events irresistible. And fraudsters know it.

In this con, cyber criminals set up convincing fake websites or social media pages, posing as a well-known store or chain that’s going out of business and offering steep discounts. When shoppers enter their credit card details or e-Transfer money to purchase products or services, they get nothing in return.

Red Flags

• The domain name is slightly off, with extra letters, words, or numbers.

• The social media account is brand new, with very few followers and only posts about the sale.

• Payment is demanded upfront, and products or services are non-refundable.

• The site asks for payment in irreversible or untraceable ways, such as e-Transfer, cryptocurrency, or gift cards.

• After payment, there is an end to communications or the seller offers excuses such as “Shipped but held at customs.”

Tips on staying safe

• Verify before you buy: Check the official retailer’s website or call their customer service number to confirm any liquidation sale.

• Search for reviews: Type the website’s name plus the word “scam” into your search engine to see if others have reported problems.

• Avoid off-brand URLs: Stick to domains that match the company’s verified Web address.

• Use a credit card: It offers better fraud protection than debit or e-Transfer payments.

2. Fake “local” social media storefronts

Cyber criminals have leaned into the popular movement to “buy local” and are setting up fake social media “shops,” pretending to be local retailers. They post photos of products, and ask you to DM them and send payment via e-Transfer. The items, if they ever come, are completely different than what you were expecting. This scam is increasingly prevalent in small or remote regions.

Red flags

• The only contact is via DM, and there is no formal business website or address.

• Very limited reviews or new accounts.

• There is a sense of urgency, such as “only one left” or “sale ends tonight.”

• Only untraceable or irreversible payment options are accepted.

• There is pressure to pay before seeing the item.

Tips on staying safe

• Look for an online footprint: Authentic local shops usually have some combination of Google Maps listing, local phone number, or external website.

• Search for the business elsewhere: See if it appears on local directories, community social media groups, or the Chamber of Commerce website.

• Pay in person whenever possible: Legitimate small businesses usually accept card or in-store payments.

• Be cautious with e-Transfers: Once the money leaves your account, it’s almost impossible to recover.

3. Vendor impersonation

This scheme harms both consumers and businesses. In this case, scammers will impersonate a vendor, supplier, business, or contractor, send a message indicating that they have updated their account, and urge you to “use this new account going forward.” When the customer sends the payment, it goes to the scammer, not the real vendor.

While fraudsters will often send such messages from a fake address, they may also hack business emails and send messages from the real account – making the scam feel all the more legitimate for customers.

Red flags

• An unsolicited notice of a new bank account for a vendor you already know.

• No prior conversation about the above change.

• The email account is new or slightly off.

• The message is urgent, pressuring the client to make the payment immediately.

• They offer no verification step, such as calling the vendor to confirm.

Tips on staying safe

• Verify through trusted channels: Always confirm banking changes by calling the vendor using a verified phone number, not the one provided in the email.

• Set up internal payment protocols: Establish a dual approval policy for changes to payment details or large transfers.

• Educate staff: Train employees to recognize phishing attempts and to report suspicious emails before acting on them.

• Check sender details carefully: Hover over the email address to spot subtle spelling changes or domain differences.

4. “Hot” investment opportunities

Fraudsters don’t just prey on shoppers and businesses – they target investors, too. In recent years, there has been an explosion of fake investment offers promising quick, guaranteed returns.

These often appear as slick social media ads or professional-looking websites. Some use deepfake videos of business leaders or celebrities to lend credibility. Others send direct messages inviting you to invest in a “limited-time” crypto project, private fund, or pre-IPO stock.

Red flags

• Promises of guaranteed – or extremely high – returns with low risk.

• Pressure to get in now, for a limited time.

• Use of celebrity endorsements or impersonation.

• Request to pay through cryptocurrency or wire transfer, which is hard to trace.

• Difficulty or refusal to let you withdraw your money.

Tips on staying safe

• Check that the firm or advisor is registered: Visit Are They Registered? before investing.

• Be skeptical of “exclusive” opportunities: Legitimate investments don’t rely on secrecy or urgency.

• Avoid sending cryptocurrency or wire transfers: These payment types are nearly impossible to recover once sent.

• Consult a licensed advisor: Before investing, run the opportunity by a professional you trust.

5. Text message deals

If you’ve received a text that says “Flash Sale – 80% off iPhones! Click here!” you’ve seen this tactic in action.

Text-based phishing, or “smishing,” is one of the fastest-growing forms of consumer fraud. In these schemes, cyber criminals send text messages claiming that you’ve won a prize, missed a payment, or can get an amazing discount. The message includes a link that either installs malware, steals personal data, or leads to a fake payment portal.

Red flags

• The text message is unexpected, especially if you aren’t subscribed to the merchant.

• There is a link to click to redeem the offer.

• The domain of the link is not that of the official store.

• There is pressure to act quickly.

• Payment is requested through non-secure or non-traditional channels.

Tips on staying safe

• Never click on unknown links: Go directly to the company’s website instead of following a link from a message.

• Report suspicious texts: Forward them to your carrier at 7726 (SPAM) or report them to the Canadian Anti-Fraud Centre.

• Use built-in phone tools: Enable spam filters and keep your operating system updated to block known threats.

• Delete messages immediately: Don’t reply or engage – it confirms your number is active.

Why these scams work

These tactics are effective because they prey on emotion, whether that’s excitement, scarcity, or a fear of missing out. Scams have become increasingly sophisticated, using deepfakes, voice cloning, lookalike domains, and AI-generated content to appear legitimate. And, by using social media and mobile platforms, they can tailor messages, boosting their credibility.

Think before you click

In an economy where every dollar counts, it’s tempting to jump on an amazing offer. But the best defence against deception is vigilance.

Remember, genuine businesses don’t rush you to pay, hide behind vague contact details, or demand untraceable payments. When in doubt, step back, double-check the deal, and trust your instincts.

Stay informed about any new or ongoing scams by checking RBC Current Scam Alerts.