What Is Bait-And-Switch?

Bait-and-switch is a practice in which a vendor lures in a buyer with a tempting offer for a great product that the vendor does not intend to sell. This usually means advertising a too-good-to-be-true deal which, when the buyer is “baited,” is then “switched” out for a different offer.

How bait-and-switch scams work

Bait-and-switch scams are a form of false advertising in which the vendor advertises a deal they don’t intend to honor. After tricking the buyer into engaging with their shop or website, the vendor will show the buyer options that are either more expensive or inferior to the advertised product. The vendor may claim the advertised offer is sold out or no longer available, when in actuality, the offer was never available to begin with and not a single customer was able to redeem it.

Bait-and-switch scams take advantage of the “sunk cost” fallacy, a psychological phenomenon in which people feel they should follow through on something they’ve already invested time and money in, even if the costs outweigh the benefits. An example of this is when someone finishes watching a movie they already started, even if they don’t like the movie.

Examples of bait-and-switch scams

Here are a few examples of bait-and-switch scams.

Ads with free offers that are actually malware

In the online version of bait and switch, the “switch” is actually malicious software, known as malware, which infects devices through various techniques. For example, there may be an ad for a free ebook, but when you click to download, it immediately downloads malware on your device. The malware can then be used to steal your sensitive data, such as your passwords, confidential files or Personally Identifiable Information (PII).

Cybercriminals use this data to steal money or commit identity theft, which can be very costly and time-consuming for victims to recover from.

Displaying an ad with a major discount to lure buyers

An example of this type of scam is showing an online ad for 60% off an expensive product. When the buyer clicks the ad, they may find this product is “sold out” but there are other similar, more expensive products. In reality, the vendor never stocked the product at the 60%-off price and it was a lie used to lure people into visiting the shop.

Conversely, the vendor may allow the customer to “purchase” the advertised deal, but ship them a product that is inferior to the one pictured. Some vendors have even shipped a photo of the object consumers believed they were purchasing instead of the physical object itself. 

Showing pictures of a beautiful apartment that is unavailable

Another common example is in the real estate industry. Photos of a beautiful apartment may be advertised as available for rent in a desirable neighborhood at a great deal. But when the potential renter reaches out, they may be told that this apartment is no longer available but there are other, more expensive apartments available. In reality, the apartment depicted in the photos was never available for that price – or at all.

Advertising a car for a low price without mentioning additional fees

A real-world example with car dealerships is advertising a low price on a car that convinces consumers to come to the dealership and commit to purchasing it. However, once consumers get the purchasing paperwork there will be additional fees that exceed the usual industry standards. The fees make the final price of the car far higher than the advertised price.

How to avoid bait-and-switch scams

Here’s how you can avoid becoming a victim of a bait-and-switch scam.

1. Use reputable websites to shop

Don’t shop on questionable websites. If you’re unsure, look up the website to see if other shoppers have had good experiences with it. You can also check if the business is accredited by the Better Business Bureau (BBB). If you are shopping on person-to-person sales sites like eBay or Etsy, check the seller reviews before purchasing to ensure other customers have had good experiences.

2. If it’s too good to be true, investigate the claims further

Popular products usually fall into a certain price range. If the deal being offered is shocking or highly unusual – for example, a brand new Apple computer being sold at a steep discount – then you should be suspicious. Investigate the vendor and read the fine print before committing to a purchase.

3. Check if links are safe before you click

It’s important to check if a link is safe by viewing the URL, also known as the website address, before you click. If the URL looks strange or doesn’t seem to match what the link claims to contain, then don’t click it before investigating further.

4. Report bait-and-switch scammers

To prevent yourself and others from falling victim to bait-and-switch scams, you should report perpetrators. Report vendors who use bait-and-switch techniques to the websites where they advertise, because this behavior is usually against website policy. The websites can then ban the vendors.

You can also report vendors who use bait-and-switch techniques to the Federal Trade Commission (FTC). You can do this by filing a consumer complaint with the FTC online.

Avoid becoming a bait-and-switch victim

Bait-and-switch scams are a common way to exploit customers and waste their time and money. While it’s illegal, vendors still use these techniques, especially online. Cybercriminals may also use these techniques to spread malware or other malicious attacks to unsuspecting users. Be alert when scrolling and shopping online to avoid becoming a victim.