How to Spot and Avoid Online Shopping Scams: Tips from the VA and FDIC

Online shopping is convenient, but it also attracts scammers looking to steal your money or personal information. Recent alerts from the U.S. Department of Veterans Affairs (VA) and the Federal Deposit Insurance Corporation (FDIC) highlight how these scams are evolving and who is being targeted. Whether you are a veteran, an older adult, or just someone who buys things online, knowing what to watch for can save you real trouble.

What happened

Starting in late 2023 and continuing through early 2026, the VA published a series of warnings aimed at veterans and the general public. A January 2026 VA News article titled “Watch out for scams and stay safe while online shopping” urged shoppers to be cautious about fake websites, phony deals that appear in search results, and unsolicited emails or texts that look like they come from legitimate retailers or the VA itself. Earlier articles—including “Shopping for the real deal” (December 2024) and “Navigating holiday shopping risks when shopping online” (November 2024)—reinforced similar advice, especially during high-volume shopping periods.

Separately, in August 2024 the FDIC issued a notice titled “Scammers and Fake Banks,” which described a scheme where fraudsters set up fake online banks or impersonate real financial institutions. They trick victims into depositing money or sharing login credentials, often through social media ads or phishing emails. The FDIC emphasized that these fake banks are not insured and that consumers may lose everything they send.

Why it matters

Online shopping scams are not rare. According to the Federal Trade Commission, consumers reported losing more than $8.8 billion to fraud in 2022, with online shopping scams accounting for a significant share. Scammers are becoming more sophisticated, using realistic-looking websites, trusted brand names, and even fake customer reviews. For veterans and older adults, the risk is higher because scammers may specifically target military benefits or retirement savings.

The VA notes that many victims are contacted after clicking on a search ad or social media post that promises deep discounts on popular items like electronics, clothing, or prescription glasses. Once a person makes a purchase, the item never arrives, or a cheap counterfeit is sent. Worse, the scammer may keep the credit card information and use it later. The FDIC warns that fake bank schemes can drain a person’s entire savings account, and because the “bank” is not real, there is no way to recover the funds through deposit insurance.

What readers can do

You can protect yourself with a few straightforward steps, as recommended by the VA and FDIC.

Verify the seller. Before entering payment details, check the website carefully. Look for a secure connection (URL beginning with “https” and a padlock icon). However, scammers now also use HTTPS, so that alone is not enough. Search for the company’s name plus “scam” or “review” to see if others have complained. Legitimate merchants usually have a physical address and a customer service phone number. If you cannot find any contact information or only find a web form, be suspicious.

Be skeptical of deals that seem too good to be true. A 70% discount on a brand-new smartphone or a luxury handbag for 90% off is almost always a red flag. Scammers lure people with prices that are far below market value. If a deal appears on social media or in a pop-up ad, do not click directly. Instead, go to the retailer’s official website manually.

Use secure payment methods. Credit cards offer the strongest fraud protection under federal law (the Fair Credit Billing Act). Many card issuers also have zero-liability policies. Payment apps like PayPal or Venmo may offer buyer protection if you use the goods/services option, but sending money through “friends and family” or using wire transfers, gift cards, or cryptocurrency is extremely risky. The FDIC specifically warns never to send payment to a “bank” you have never heard of, especially if they pressure you to use a money transfer service.

Monitor your accounts. After any online purchase, check your bank and credit card statements within a few days. Report unauthorized charges immediately. If you used a debit card, the timeline for recovering lost money can be much shorter, so act fast.

If you fall victim, act quickly. Contact your bank or credit card company to dispute the charge and ask for a replacement card. Place a fraud alert on your credit reports with Equifax, Experian, and TransUnion (free and easy to do). File a report with the Federal Trade Commission at ReportFraud.ftc.gov. If the scam involves VA benefits or impersonation of the VA, also notify the VA’s Office of Inspector General at 1-800-488-8244.

Sources

  • VA News, “Watch out for scams and stay safe while online shopping,” January 28, 2026.
  • VA News, “Shopping for the real deal,” December 10, 2024.
  • VA News, “Navigating holiday shopping risks when shopping online,” November 28, 2024.
  • FDIC Consumer News, “Scammers and Fake Banks,” August 13, 2024.
  • Federal Trade Commission, “Consumer Sentinel Network Data Book 2022,” 2023.