Facebook Ad Scam Hits Outdoor Retailer: Small Business Warns Consumers
Michigan resident Daryl Vallad thought he had stumbled upon a great deal when he found an ice fishing flotation suit for $60, marked down from the usual $300. However, it turned out to be a Facebook ad scam, mimicking the legitimate retailer WindRider in South St. Paul. Vallad and more than 200 other customers fell victim to the deceptive ads, losing money and sharing credit card details with impostors.
The legitimate company, WindRider, a manufacturer of fishing and outdoor apparel, experienced a significant drop in sales generated from Facebook ads during November.
Customers began reporting undelivered purchases with order numbers that didn’t match the company’s records and prices well below the retail cost. WindRider’s owner, Robert Sanberg, attempted to stop the fake ads on Facebook, but the process was time-consuming, and the platform seemed indifferent to the issue.
Sanberg estimates a loss of $20,000 in revenue per day in late November and early December. Frustrated by the situation, he suspended $200,000 in Facebook advertising during these critical sales months. Facebook typically accounted for 70% of WindRider’s November and December sales. Sanberg is now grappling with the aftermath, as many customers mistakenly believe they shopped at WindRider but never received their purchases.
The prevalence of such scams is alarming, affecting not only consumers but also small businesses. Sanberg’s story serves as a cautionary tale about the challenges businesses face in dealing with deceptive Facebook ads. To combat such scams, WindRider has enlisted the help of cybersecurity firm Allure Security to track fake ads and protect its brand reputation.
This incident highlights the need for greater vigilance among consumers and businesses, urging them to be cautious about clicking on unfamiliar brand ads and to verify the authenticity of online retailers. The Minnesota Attorney General’s Office has received complaints about deceptive ads, emphasizing the importance of filing complaints to launch investigations into such criminal activities.
As online scams continue to evolve, experts recommend using credit cards for online transactions and conducting thorough research on businesses before making purchases. The incident underscores the call for Facebook to take more proactive measures to protect businesses from scam advertisements.
(Source: Techexplor.com)