1 in 3 Americans Has Fallen for an Online Shopping Scam – Here’s How to Avoid It

What happened

A new report from the Pew Research Center, published in November 2025, found that about a third of Americans say they’ve had an online shopping scam happen to them. The survey, part of Pew’s ongoing work on digital fraud, asked adults about various kinds of online scams. Shopping scams—where someone pays for goods that never arrive or are not as advertised—were among the most common.

The data adds to a pattern the Federal Trade Commission has tracked for years: reports of fraud originating on social media marketplaces and payment apps have been rising steadily. Payment platforms like Venmo and Cash App are especially common vectors, because transactions are often irreversible and buyers have limited recourse.

Why it matters

The scale of the problem is larger than many shoppers realize. If one in three American adults has been hit, it’s not an edge case; it’s a routine risk. And the conditions that make these scams possible are only getting worse. More people shop through social media, use peer-to-peer payment apps, and buy from unfamiliar sellers on platforms like TikTok Shop or Instagram.

The convenience of buying with a few taps can override our usual caution. Scammers exploit that. They set up fake storefronts, run polished ads, and ask for payment via apps that offer little protection. By the time the victim realizes the item isn’t coming, the money is gone and the seller has vanished.

What readers can do

You don’t need to stop shopping online. But you can build a few habits that dramatically reduce your chances of being scammed.

Stick to credit cards when possible. Credit card companies are legally required to let you dispute charges for goods you didn’t receive. Debit cards offer less protection, and payment apps often treat these as “friends and family” transactions with no dispute process. If a seller insists on Venmo or Cash App for payment, that’s a red flag.

Check the website carefully. Scammers often register domains that look like real brand names with small misspellings. Look for typos, broken English, missing contact pages, and no physical address. If the site is new (check via WHOIS lookup), treat it with suspicion. A legitimate business should have an established web presence and a track record.

Research the seller. Search for the store name plus “scam” or “review.” Look for third-party feedback on sites like Trustpilot or the Better Business Bureau. But be aware that fake five-star reviews are common; look for detailed, negative reviews that mention specific problems.

Watch for too-good-to-be-true prices. If a $1,200 laptop is listed for $300, it’s almost certainly a scam. Scammers use low prices to create urgency. The same goes for luxury goods sold at massive discounts on social media.

Use buyer protection features. Some payment apps offer purchase protection if you select “goods and services” instead of “friends and family.” It’s worth the small fee. Similarly, PayPal offers dispute resolution for transactions marked as purchases.

Be skeptical of social media ads. Many scams originate as promoted posts on Facebook, Instagram, or TikTok. Influencer endorsements are not guarantees; scammers often pay for fake endorsements or hack accounts. Verify the product independently before buying.

If you do get scammed

Act quickly. Contact your bank or credit card issuer to report the transaction and request a chargeback. File a report with the FTC at ReportFraud.ftc.gov. Change passwords on any accounts you used during the transaction, especially if you reused a password elsewhere. For scams via payment apps, report the transaction to the app’s support team—they may block the scammer from operating further.

Even if you cannot recover the money, reporting helps authorities track patterns and may prevent others from falling for the same scheme.

Sources

• Pew Research Center (2025). “About a third of Americans say they’ve had an online shopping scam happen to them.”
• Federal Trade Commission. Consumer Sentinel Network Data Book, various years.
• Pew Research Center (2022). “Payment apps like Venmo and Cash App bring convenience – and security concerns – to some users.”

Vigilance is the main defense. The Pew data shows this is not a rare problem. Treat every unfamiliar online seller as a potential scam until you have verified they are legitimate. A few minutes of checking can save you hundreds of dollars and a lot of frustration.