Online puppy scams have become increasingly prevalent, causing significant financial losses to unsuspecting victims, and reducing trust in e-commerce sites. These scams not only exploit the emotional vulnerability of individuals but also undermine the integrity of online marketplaces. Ethical e-commerce practices are essential to combat these fraudulent activities and restore consumer confidence.

This study by Outsource2india aims to analyze the impact of online puppy scams over the last five years, highlighting key statistics, growth trends, and the most affected states and breeds. By understanding these trends, e-commerce platforms can implement better safeguards and ethical practices to protect consumers.

Key takeaway

• The puppy scam became a popular scam during Covid. The number of puppy scam reports more than tripled in 2020, reaching a total of 2,143 reports.
• During 2023 and 2024, the average dollar lost per puppy scam was $1,222.13, with the highest recorded loss in a single scam being a staggering $60,000. Alaska had the highest average dollar lost at $3,249.14 and the highest report per capita.
• Certain dog breeds, such as Bulldogs, were more frequently targeted, making them prime targets for scammers. Bulldog is mentioned 457 times in the scam reports , followed by Dachshund (329) and Pomeranian (194).

Surge of Puppy Scam in 2020

Scam victims can report their misadventure to the Better Business Bureau. We have analyzed close to 10,000 scam reports referring to puppy scams during the last five years. Of those, 8,671 (87% of total scams) were online purchases. Over 800 (8% of total puppy scams) scams came from Facebook. This data underscores the need for stricter verification processes and ethical standards on e-commerce sites to prevent such scams.

Puppy scams are a type of fraud where scammers deceive people into believing they are selling a real puppy. They often use fake websites, social media accounts, or online marketplaces to advertise puppies at low prices. Victims may be asked to pay a deposit or full price upfront, but the puppy never arrives. Ethical e-commerce practices, such as thorough vetting of sellers and transparent transaction processes, can help mitigate these fraudulent activities.

Interestingly, puppy scams more than tripled in 2020, with a total of 2,143 reports, and remained at a high level in 2021. Scammers probably took advantage of the lockdown period to target people who were very isolated during that time. Since 2019 the average dollar lost on that scam is getting higher. It reached an average of $1413 in 2022. It decreased in 2023, but it is already trending up in 2024 with an average dollar loss of $1,293. Compared to 2019, the average dollar lost is 34% higher in 2024.

The highest recorded loss in a single scam during the last 12 months was a staggering $60,000. In that specific case, the person ordered a puppy that was supposed to be delivered quickly, but soon, the scammer requested additional payments for various fees. The delivery was repeatedly delayed, and the ordeal dragged on for two months, with persistent requests for payments continuing. These figures underscore the substantial financial impact that puppy scams can have on individuals.

Average Lost Per State

The financial impact of puppy scams varies across different states. In 2023-2024, Alaska had the highest average dollar lost in the nation, with $3,249.14, followed by North Carolina ($2,118) and South Dakota ($2,040.67). Across all states, almost all of those scams (88%) are online purchases.

Most Mentioned Breeds

Certain dog breeds are more frequently targeted in puppy scams. The most mentioned breed in scam reports is Bulldog with 457 mentions, followed by Dachshund (329) and Pomeranian (194). These breeds are popular among buyers, making them prime targets for scammers.

The most mentioned breed also varies by state. The breed that is number one in most states is Bulldog, reflecting the general trend of the data. The data also show that the puppy scam is more likely to work in certain states. In addition to reporting the highest average dollar lost, Alaska had the most reports per capita, with 4.2 reports per 100,000 inhabitants, followed by Colorado (4) and Arizona (3.9).

Puppy scams continue to pose a significant financial threat to individuals, with substantial losses reported in the last five years. The data highlights the need for increased awareness and preventive measures to protect potential buyers from these scams. By understanding the trends and most affected areas, we can better equip ourselves to combat this growing issue.

What to Watch for in E-commerce Verification

According to the Veriff Fraud Index 2024, online fraud has increased 20% year-over-year. Consumers should verify the creditability of sites and ensure that they have a secure checkout process.

E-commerce companies should prioritize showing proof that they are credible and have happy customers with reviews, secure checkout, and trust badges like BBB accreditations, Google Verified Reviews, or Amazon Best Sellers.

Instead of selling through the Facebook marketplace, consider building an e-commerce store with sites like Shopify, or custom platforms, this will ensure you are seen as a trusted source to buy from.

Methodology

The data for this study was collected from the Better Business Bureau (BBB) scam reports, focusing specifically on puppy scams. We analyzed close to 10,000 scam reports mentioning puppy scams over 5 years. The data includes various attributes such as the year of the report, the dollar amount lost, the victim's location, and the type of scam. The analysis was conducted using various statistical and data visualization techniques to uncover key insights and trends. Descriptive statistics, trend analysis, geographical analysis, and breed analysis were conducted to provide an overview of the financial impact of puppy scams, identify trends in average dollars lost per year, examine the financial impact across different states, and identify the most frequently mentioned dog breeds in scam reports.

While this study provides valuable insights into the prevalence and financial impact of puppy scams, it is important to acknowledge certain limitations, such as the data being limited to reports submitted to the Better Business Bureau, potential inaccuracies, or underreporting due to self-reported information from victims. Many victims do not report scams due to feelings of shame and embarrassment, which can lead to underreporting and an incomplete understanding of the true prevalence of these scams.