Phishing campaigns target Black Friday shoppers. How to spot them.

Experts warn that fraudsters are taking advantage of Black Friday sales to target US shoppers with fake websites and ads for big brands such as IKEA, Wayfair and The North Face, after online fraud hit record highs in 2023.

A new report released by threat intelligence firm EclecticIQ identified a campaign that runs a sprawling network of fabricated websites that use “Trusted Store” badges to lure customers with fake products.

When consumers attempt to make a purchase, fraudsters steal their personal information and payment information. Consumers are often unaware that they were cheated until they fail to receive the product.

Reports of online fraud in 2023 exceeded $12.5 billion in potential losses — a 22% jump from 2022, according to FBI data. Officials say increasingly sophisticated scams are using tools including AI to run their campaigns.

“With the way it now seems like everyone is doing business online, reliance on digital platforms has given these groups a wider attack surface than ever,” EclecticIQ CEO Cody Barrow told CBS News. “Unfortunately, it is likely that we will see the impact extend into next week.”

The scammers

EclecticIQ says it identified at least 8,000 manufactured websites that lure shoppers by offering steep “deals” on popular brands. The websites are not affiliated with the brands they appear to represent, but are designed to look like official sites and use URLs that appear authentic.

In one example, a website posing as Wayfair used the URL wayfairtoday.com. Another site used the URL wayfairblackfriday.com. The website was registered in early November and offered fake “deals,” including an $800 mattress reduced to $39.

CBS News also found an ad that appropriated Wayfair’s logo, directing users to another spoofed website pretending to be the retailer. It was removed from Meta’s ad library as of Friday. Wayfair told CBS News it actively monitors fraud to ensure customers are protected.

Analysts detected Mandarin coding and Chinese IP addresses on the sites, indicating that the phishing campaign was run by a China-based group. IKEA told CBS News that it was investigating one of the scam websites using its name that EclecticIQ identified.

Separately, an ad on Facebook and Instagram using The North Face logo directed users to a fabricated website. The ad was removed for policy violations, and The North Face told CBS News it was working with Meta and “other partners” to combat scam sites.

“Fraudsters use every online platform available to them and are constantly evolving their tactics to avoid enforcement,” said Meta spokesperson Erin Logan. “In this case, our systems proactively detected and removed a number of these ads before they were reported to us.”

The Federal Trade Commission released data in February showing that online shopping fraud was second most common type of fraud reported in 2023.

Experts say fraudulent websites and ads remain a pervasive problem. “Many of the fraud sites are short-term campaigns, so it’s an ongoing effort to identify new sites,” Ilya Volovik, director of Recorded Future Payment Fraud Intelligence, told CBS News. “Some of the longer running scam sites change their ‘sale’ ad based on a holiday.”

Tips to protect yourself

Cliff Steinhauer, director of information security and engagement at the National Cybersecurity Alliance, said consumers should take precautions, be aware when shopping online and act quickly if they believe they’ve been scammed.

Secure your accounts. Experts recommend setting up multi-factor authentication as well as strong and unique passwords for all accounts, including shopping and banking sites.

Avoid unknown links: Be wary of links from unsolicited emails and text messages. Instead, use a search engine to navigate to the retailer’s website.

Look for red flags. Be wary of offers that seem too good to be true, as well as sites that use too many pop-ups and urgent language. If in doubt, leave the page.

Check out the website. Look up reviews from other customers who have used the site. Visit the Better Business Bureau’s websitewhich maintains a database of ratings for millions of businesses.

If you believe you have been the victim of fraud, notify your bank immediately to reverse the charges. You should also change the password for your online accounts. File a police report if you experience harassment or repeated attempts to steal more of your information.

Experts also recommend freezing your credit at the three major credit reporting agencies if your personal information has been compromised through a data breach. This ensures that your identity cannot be stolen in the event that fraudsters obtain your social security number.