How to Spot an Online Shopping Scam (and Keep Your Money Safe)

Online shopping is convenient, but it also attracts scammers. Government agencies, including the VA News and the Federal Deposit Insurance Corporation (FDIC), have issued alerts in recent months about rising threats ranging from fake websites to fraudulent banks. While the basics of scam avoidance haven’t changed much, scammers are refining their tactics. Here’s what you need to know to protect yourself.

What’s Happening

Scammers are creating increasingly convincing knockoff online stores, sending phishing emails that look like they come from trusted retailers, and even setting up fake banks to steal payment information. The FDIC published a warning in August 2024 about scammers impersonating real banks or creating entirely fictitious ones. Meanwhile, the VA News has been running a series of alerts—most recently in January 2026—urging shoppers to watch out for scams and stay safe when buying online.

These scams aren’t rare. According to the Federal Trade Commission, consumers reported losing billions to online shopping fraud in recent years. The problem is that scammers exploit urgency and convenience. A deal that seems too good to be true often is.

Why It Matters

Beyond losing the money you spend on a fake product, falling for a scam can expose your personal information—credit card numbers, addresses, even Social Security numbers if a checkout page asks for them. That can lead to identity theft that takes months to resolve. For veterans and others who rely on benefits, scammers sometimes target those accounts specifically, as noted in a December 2023 VA News article.

The good news: most scams share warning signs. Once you learn them, you can avoid the vast majority of traps.

What You Can Do

Here are concrete steps to reduce your risk, based on guidance from the FTC, FDIC, and VA.

1. Verify the Seller and Website

Before you buy from an unfamiliar store, do a quick check:

  • Look at the URL carefully. Scammers use slight misspellings or extra words (e.g., “amzon-discounts.com” instead of “amazon.com”).
  • Check if the site uses HTTPS. The padlock icon in the address bar means the connection is encrypted, but it’s not a guarantee the store is legitimate—just that data is sent securely.
  • Search for the store name plus “scam” or “review.” Look for complaints on sites like the Better Business Bureau or Trustpilot.
  • Use a “Whois” lookup to see when the domain was registered. A site created a few weeks ago and offering huge discounts is a red flag.

2. Be Skeptical of Unusually Low Prices

If a new smartphone is listed at 90% off, something is off. Scammers dangle irresistible deals to get you to act fast. Take a moment to compare the price with other retailers. If it seems impossible, it’s probably a scam.

3. Avoid Unusual Payment Methods

Legitimate online stores accept credit cards, PayPal, or other mainstream payment services. If the only options are wire transfers, cryptocurrency, gift cards, or a “payment app” you’ve never heard of, walk away. Credit cards offer better fraud protection than debit cards—most issuers allow you to dispute charges and get your money back if the transaction was unauthorized.

4. Watch for Pressure to Act Quickly

Scammers often say “limited stock” or “offer ends in 10 minutes.” That’s designed to bypass your rational thinking. A real sale will still be there tomorrow. Step back and verify before clicking “buy.”

5. Enable Two-Factor Authentication (2FA)

On your email, banking, and shopping accounts, turn on two-factor authentication. This adds a second step (like a code sent to your phone) when you log in. Even if scammers get your password, they won’t be able to access your account without the code.

6. Check for Secure Checkout

When you’re about to pay, look for “https” in the URL (not just “http”). Also, check that the payment page is part of the same domain you were shopping on—scammers can redirect you to a fake payment page that captures your details.

7. What to Do If You’ve Been Scammed

If you suspect you’ve given money or info to a scammer:

  • Contact your bank or credit card issuer immediately. They can freeze the transaction, reverse charges, and issue a new card.
  • Change the passwords on all accounts you use online. Use a password manager to create strong, unique passwords.
  • Report the scam to the Federal Trade Commission at reportfraud.ftc.gov. Your report helps law enforcement track patterns.
  • If the scam involved a government benefits account (like VA benefits), notify the relevant agency directly.

Sources

  • VA News, “Watch out for scams and stay safe while online shopping” (January 29, 2026)
  • VA News, “Shopping for the real deal” (December 12, 2024)
  • VA News, “Navigating holiday shopping risks when shopping online” (November 28, 2024)
  • FDIC, “Scammers and Fake Banks” (August 13, 2024)
  • Federal Trade Commission (ftc.gov)

Staying safe online isn’t about paranoia—it’s about building a few simple habits. Take an extra minute to check a website or payment method, and you’ll save yourself from most of the common traps.