How to Spot and Avoid Online Shopping Scams: Tips from Government Agencies

Online shopping is convenient, but it also attracts scammers looking to steal your money or personal information. Government agencies such as the VA and the FDIC regularly issue alerts to help consumers recognize the warning signs. This article distills their guidance into practical steps you can take right now.

What Happened

In January 2026, the U.S. Department of Veterans Affairs published an alert titled “Watch out for scams and stay safe while online shopping,” highlighting common tactics used against veterans and their families (VA News, Jan 28, 2026). Earlier, in August 2024, the Federal Deposit Insurance Corporation released a consumer alert about scammers operating fake banks and fraudulent payment schemes (FDIC, Aug 13, 2024). These official warnings are part of a broader pattern: scam activity spikes especially during holiday seasons, with VA News also covering holiday risks in November and December 2024, as well as tips for protecting VA benefits.

Why It Matters

Online shopping scams are not rare events. Fake websites, phony deals, and fraudulent payment requests can drain bank accounts or compromise sensitive data like Social Security numbers and benefit credentials. For veterans, scammers may target disability or pension payments directly. Even shoppers who are careful can be tricked by websites that look legitimate but are designed to steal credit card numbers. The financial and emotional damage can be significant, and recovering lost funds or restored identity is often difficult.

What Readers Can Do

Government sources recommend a few straightforward practices that reduce risk:

  • Check the URL and domain. Scammers often use addresses that are slight misspellings of well-known retailers or that end in unfamiliar suffixes like .shop or .biz. Look for the padlock icon and “https://” at the start, but note that a padlock alone does not guarantee legitimacy—always verify the company independently.

  • Be wary of “too good to be true” deals. Aggressive discounts, urgency warnings (“only 3 left”), or requests to pay via wire transfer, gift cards, or cryptocurrency are red flags. Legitimate businesses rarely ask for such methods.

  • Verify the seller. If you receive an unsolicited email or ad, do not click the link. Instead, open a browser and navigate to the seller’s official website. Search for reviews and check the company’s physical address and phone number. The FDIC specifically warns of fake banks that may advertise high interest rates or easy loans to lure consumers.

  • Use secure payment methods. Credit cards offer stronger fraud protection than debit cards. Avoid sharing bank account numbers unless you are on a trusted, encrypted site. Enable transaction alerts so you are notified of any unexpected charges.

  • Protect your personal information. Never provide your Social Security number, VA claim details, or login credentials unless you are absolutely certain of the recipient’s identity. Government agencies will not ask for such information by email or text.

  • Know how to report. If you suspect a scam, contact your bank or credit card issuer immediately. Report the incident to the Federal Trade Commission at ReportFraud.ftc.gov. Veterans can also report benefit-related fraud to the VA OIG hotline. Monitoring your credit report for unauthorized accounts is a good habit.

Sources

The guidance above is drawn from the following official alerts:

  • VA News. “Watch out for scams and stay safe while online shopping.” January 28, 2026.
  • FDIC. “Scammers and Fake Banks.” Consumer Alert, August 13, 2024.
  • VA News. “Shopping for the real deal.” December 10, 2024.
  • VA News. “Navigating holiday shopping risks when shopping online.” November 28, 2024.
  • VA News. “Protect your benefits from scammers during the holiday season.” December 1, 2023.
  • VA News. “Online safety measures for the Veteran community.” December 18, 2024.

Staying informed is your best defense. Share these tips with family and friends—especially those who may be less familiar with online shopping risks—and remember that legitimate sellers and government agencies will never pressure you into quick, untraceable payments.