How to Spot and Avoid Online Shopping Scams This Year

Online shopping is convenient, but it also attracts scammers looking to take advantage of shoppers. Government agencies—including the Department of Veterans Affairs and the Federal Deposit Insurance Corporation—have issued warnings about rising fraud, particularly around holidays and seasonal sales. Veterans and seniors are often targeted, but anyone can fall victim to a well-crafted fake store or phishing email.

The good news is that most scams follow predictable patterns. Learning to recognize those patterns can save you money and stress.

What’s happening: Rising online shopping scams

Scammers are becoming more sophisticated. They create fake websites that look nearly identical to legitimate retailers, send emails that appear to come from trusted companies, and post too-good-to-be-true deals on social media. According to a VA News article from January 2026, the agency has observed an increase in scams targeting veterans, including fake VA-related offers and identity verification schemes.

Another common tactic involves fake bank websites. The FDIC warned in a 2024 alert that scammers create fraudulent banking sites or impersonate real banks to steal login credentials. These scams often start with a phishing email that claims your account is locked or that you need to verify information.

Social media fraud is also on the rise. Scammers set up fake storefronts on platforms like Facebook or Instagram, advertise deeply discounted products, and then disappear after taking payments. Fox News recently reported on concerns about ID.me safety, noting that scammers have used similar verification prompts to trick people into handing over personal data.

Why it matters

Online shopping scams cost consumers billions of dollars each year. Beyond the immediate financial loss, victims may face identity theft, unauthorized credit card charges, or damage to their credit. Older adults and veterans are disproportionately affected because they may be less familiar with digital red flags or more trusting of official-looking communications.

Once money is sent via wire transfer, gift card, or cryptocurrency, it is nearly impossible to recover. That is why prevention matters far more than trying to get your money back after the fact.

Practical steps to protect yourself

You do not need advanced technical skills to stay safe. These steps, based on guidance from VA News and the FDIC, cover the most common attack points.

Inspect the website before buying. Look at the URL carefully. Scammers often use domains that differ by one letter or add extra words (e.g., “amazon-discounts.shop” instead of “amazon.com”). Check for a padlock icon in the address bar, but know that encryption alone does not mean the site is legitimate. Use WHOIS lookup tools to see when the domain was registered; a site created a few weeks ago is suspicious.

Verify the seller. Search for the company name plus “scam” or “complaint.” Read reviews from multiple sources, not just the testimonials on the site itself. If the website has no phone number, no physical address, or only a contact form, be cautious. Legitimate businesses provide clear contact information.

Be skeptical of deals that seem too good. Extremely low prices, especially for popular electronics or luxury goods, are a major red flag. Scammers use urgency (“Only 3 left!”) to pressure you into buying without thinking. Take a moment to compare prices on other sites.

Avoid risky payment methods. Never pay by wire transfer, gift card, or cryptocurrency for online purchases. Credit cards offer the strongest fraud protection. PayPal also provides a degree of buyer protection if you use the “goods and services” option. Enable two-factor authentication on your payment accounts to add an extra layer of security.

Watch for phishing emails and texts. Emails that claim you need to update your account, confirm a shipment, or verify your identity should be treated with suspicion. Do not click links directly; instead, type the company’s official URL into your browser. Look for generic greetings (“Dear customer”), spelling errors, or mismatched sender addresses.

If you are a veteran, be extra careful with ID verification. The VA and other agencies use ID.me for secure access, but scammers have set up fake ID.me pages. Always navigate to ID.me from the official VA website, never from a link in an unsolicited email or text.

Know what to do if you are scammed. If you lose money or share personal information, act quickly. Contact your bank or credit card issuer to dispute the charge and freeze your account if needed. File a report with the Federal Trade Commission at ReportFraud.ftc.gov. Also report the scam to your local police department and, if you are a veteran, to the VA’s fraud hotline.

Sources

  • VA News. “Watch out for scams and stay safe while online shopping.” January 28, 2026.
  • VA News. “Navigating holiday shopping risks when shopping online.” November 28, 2024.
  • FDIC. “Scammers and Fake Banks.” August 13, 2024.
  • Fox News. “Is ID.me safe to use? What you need to know.” May 12, 2026.

Staying safe online comes down to a few habits: pause before clicking, verify before paying, and trust your gut when something feels off. Most scams fall apart under even a quick second look.