How to Spot and Avoid Online Shopping Scams: Red Flags and Safety Tips

Online shopping is convenient, but it also attracts scammers who try to steal your money or personal information. Government agencies, including the Department of Veterans Affairs (VA) and the Federal Deposit Insurance Corporation (FDIC), regularly issue warnings about these threats. This article compiles their advice into a practical guide for anyone who shops online, especially those who may be less familiar with digital safety practices.

What’s happening

In January 2026, the VA News published an article titled “Watch out for scams and stay safe while online shopping,” reminding consumers that fraudsters are constantly refining their tactics. Other recent reports reinforce the message. The FDIC warned about scammers setting up fake banks that appear legitimate. Fox News also raised questions about the safety of ID.me, the identity verification service used by many government agencies, after reports of phishing attempts targeting users.

These alerts are not isolated. Holiday shopping seasons, tax filing periods, and major sales events often see a spike in fraudulent activity. Scammers use email, social media, and fake websites to impersonate trusted retailers, banks, or even government services.

Why it matters

Falling for an online shopping scam can lead to direct financial loss, identity theft, or unauthorized access to accounts. For veterans and older adults, the stakes can be even higher. Many veterans use ID.me to access VA benefits, and scammers have been known to send fake messages that look like official ID.me notifications. Once a scammer has your login credentials, they can potentially redirect benefit payments or steal sensitive information.

The FDIC’s warning about fake banks is especially relevant for online shoppers who may be tempted by unverified payment portals. If you deposit money into a fraudulent account, you will likely never see it again.

What you can do

Recognizing common scams is the first step. Here are concrete measures recommended by the VA, FDIC, and other consumer protection sources.

Before you buy

  • Check the website URL carefully. Scammers often use addresses that differ from the real store by one or two characters (for example, “amazzon-shop.com” instead of “amazon.com”). Look for HTTPS (the padlock icon) but note that a padlock alone does not guarantee legitimacy.
  • Verify the seller. For unfamiliar online stores, search for reviews from sources you trust. Be cautious if the only reviews are overwhelmingly positive and posted in a short period.
  • Use credit cards or trusted payment services. Credit cards offer stronger fraud protection than debit cards or wire transfers. Avoid paying by bank transfer, gift card, or cryptocurrency — these methods are nearly impossible to recover.
  • Beware of deals that seem too good to be true. A 90% discount on a popular item is almost always a red flag.

Protect your accounts

  • Do not click links in unsolicited emails or text messages. If you receive a message claiming to be from a retailer or from ID.me, go directly to their official website by typing the address into your browser. Do not use the link provided in the message.
  • Use unique, strong passwords for each online store or service. A password manager can help you manage them.
  • Enable two-factor authentication wherever offered, especially on accounts tied to payment or personal data.

If you think you’ve been scammed

  • Contact your bank or credit card company immediately. They may be able to stop a transaction or reverse a charge.
  • File a report with the Federal Trade Commission (FTC) at ReportFraud.ftc.gov. This helps authorities track scams and may assist in recovery.
  • Report the scam to your local police if you lost money or had personal information stolen.
  • Change your passwords for any accounts you suspect may be compromised.

Sources

  • VA News — “Watch out for scams and stay safe while online shopping” (January 2026)
  • VA News — “Shopping for the real deal” (December 2024)
  • VA News — “Navigating holiday shopping risks when shopping online” (November 2024)
  • VA News — “Online safety measures for the Veteran community” (December 2024)
  • FDIC — “Scammers and Fake Banks” (August 2024)
  • Fox News — “Is ID.me safe to use? What you need to know” (May 2026)

These resources provide additional detail and are updated regularly. If you encounter a scam you are unsure about, check the FTC’s consumer alerts page or consult the VA’s fraud prevention guides. Staying cautious does not have to be complicated — a few simple habits can keep your online shopping safe.