How to Spot and Avoid Online Shopping Scams This Year (and Every Year)

Online shopping has become a daily habit for millions of people, but the convenience comes with a growing risk. According to the FBI’s most recent Internet Crime Report, reported losses from online shopping fraud reached billions of dollars in 2024 alone, and the numbers keep climbing. The Federal Trade Commission has also noted a sharp rise in complaints involving fake websites, phishing emails, and counterfeit goods. These scams don’t just appear during the holiday season—they happen year-round, targeting shoppers of all ages and backgrounds.

This article explains the most common types of online shopping fraud, why they matter for your personal security, and practical steps you can take to protect yourself. No hype, just facts and clear advice.

What’s going on

Online shopping scams take several forms, but they all share a common goal: getting you to part with your money or personal information without delivering what was promised.

  • Phishing emails and texts. Scammers send messages that look like they come from a legitimate retailer, shipping company, or payment service. The message often says there’s a problem with your order or offers an too‑good‑to‑be‑true discount. It asks you to click a link, which leads to a fake login page designed to steal your credentials.
  • Fake websites and social media ads. Fraudsters create convincing but entirely fake online stores. They use stolen logos, product images, and even fake customer reviews. You place an order and either receive nothing, a cheap counterfeit, or a package that never arrives.
  • Counterfeit goods and misrepresented items. Some scams are less about stealing your payment info and more about selling you a knock‑off that looks like the real thing. This is especially common for luxury goods, electronics, and designer clothing sold through third‑party marketplaces.
  • Advance‑fee and overpayment scams. After a purchase, the scammer may claim there was an error and ask you to send back money via wire transfer or gift cards. Once you send it, the original payment bounces or is reversed, leaving you out of pocket.

The FBI’s 2024 Internet Crime Report lists online shopping fraud among the top categories by victim count. The median loss per person is often a few hundred dollars, but for some victims—especially older adults and military families—the losses can be much higher.

Why it matters

Beyond the immediate financial hit, falling for an online shopping scam can lead to identity theft, unauthorized credit card charges, and compromised email accounts. Scammers often reuse the personal details you provide to target you again with more sophisticated attacks.

A 2024 VA News article highlighted that scams targeting veterans and military families are particularly damaging because they can delay or disrupt access to benefits. While the FBI and FTC work with law enforcement to shut down fraudulent operations, many of these scams originate overseas, making recovery difficult.

The bottom line: a few minutes of caution can save you weeks of hassle and hundreds of dollars. Being aware of the red flags is the best defense.

What you can do

Here are concrete steps you can take—right now and every time you shop online—to reduce your risk.

1. Verify the website before you buy. Look for contact information, a physical address, and a clear return policy. Use a domain age checker (many are free) to see if the site was created recently. Be wary of URLs that misspell a brand name or use odd top‑level domains like .shop or .xyz.

2. Use secure payment methods. Credit cards and reputable payment processors (like PayPal or Apple Pay) offer buyer protection. Avoid wire transfers, cryptocurrency, gift cards, and cash‑app transactions, which are almost impossible to reverse.

3. Check seller reviews carefully. On marketplaces like Amazon, eBay, or Etsy, read reviews from verified purchasers and look for patterns. A sudden flood of five‑star reviews with generic language is a red flag.

4. Don’t click links in unsolicited messages. If you get an email or text about a delivery or a problem with your order, go directly to the retailer’s official website instead of clicking the link. Legitimate companies rarely ask for sensitive info over email.

5. Watch for too‑good‑to‑be‑true prices. If a new pair of high‑end headphones is listed at 80% off on a site you’ve never heard of, it’s almost certainly a scam. Compare prices across multiple trusted retailers.

6. Keep your devices and accounts updated. Use unique passwords for each shopping account, enable two‑factor authentication when offered, and run antivirus software on your computer or phone.

7. Know what to do if you are scammed. Act quickly. Contact your bank or credit card issuer to dispute the charge. File a report with the FTC at ReportFraud.ftc.gov and with the FBI’s Internet Crime Complaint Center (IC3) at ic3.gov. If you gave away personal information like your Social Security number, consider placing a fraud alert on your credit file.

Sources

  • VA News (.gov) – “Watch out for scams and stay safe while online shopping” (January 2026)
  • FBI – “2024 Internet Crime Report” (May 2025)
  • Federal Trade Commission – “Spot Health Insurance Scams” (December 2025) and general consumer advice
  • VA News (.gov) – “Navigating holiday shopping risks when shopping online” (November 2024)
  • MOAA – “Military Scams: How to Spot Them and Protect Your Community” (July 2025)

These government and official sources provide up‑to‑date data and actionable guidance. The strategies above are based on their recommendations and years of documented patterns in consumer fraud.