The majority of consumers admit to falling victim to online cashback scam

Published : 11 April 2024
Updated : 23 May 2024
The majority of consumers admit to falling victim to online cashback scam

A study released on Tuesday revealed that most of the respondents to the survey claimed they were enticed to an online platform that promised subscription and payback, but after joining up they never got any money.

The Central Consumer Protection Authority (CCPA) has recognized the 13 "dark patterns" that represent unfair commercial practices, deceptive advertising, or infringement of consumer rights. These patterns include bait-and-switch tactics, drip pricing, subscription traps, and other related techniques.

According to the analysis by LocalCircles, "62 percent of users of online payment platforms surveyed experienced the bait and switch approach where a cashback was advertised to lure them but never actually paid after they signed up/conducted the specified transaction."

According to the company, customers of online payment platforms in 376 Indian districts sent them more than 45,000 responses.

Sixty-seven percent of online payment platform customers reported falling victim to subscription traps, when they added or linked their bank account for UPI payments and then discovered that it was difficult to unlink or remove it.
Since December 2023, the government has outlawed dark patterns on digital platforms.