How to Spot Online Shopping Scams and Protect Yourself

Online shopping has become a routine part of life, but it also attracts scammers looking to steal your money or personal information. Government agencies like the Department of Veterans Affairs and the Federal Deposit Insurance Corporation have issued warnings about evolving tactics. For example, a January 2026 VA News alert reminded veterans to watch out for scams while shopping online, and an FDIC consumer article from August 2024 described fake banks that appear legitimate but are merely fronts for fraud.

Whether you are a frequent online shopper or only buy occasionally, understanding how these scams work and what to do about them can save you time, money, and stress.

What Happened: Recent Alerts and Patterns

Scammers constantly adapt their methods. The VA has published multiple alerts over the past year, including a November 2024 piece on navigating holiday shopping risks and a December 2024 article on online safety measures for the Veteran community. These are not isolated incidents—they reflect a broader, ongoing threat that targets everyone, not just veterans.

A notable example comes from the FDIC: scammers create fake bank websites, complete with professional-looking interfaces and fake customer service numbers. They then push these “banks” through social media ads or phishing emails. Victims deposit money thinking they are opening a real account, only to find the site vanishes and their funds are gone. Another tactic involves impersonating trusted identity verification services. Fox News reported in May 2026 on safety concerns around ID.me, a platform used by some government agencies, and emphasized the importance of verifying you are on the real site before entering sensitive data.

Why It Matters

Online shopping scams are not rare. According to the Federal Trade Commission, consumers reported losing billions of dollars to fraud in recent years, with online shopping being a top category. Beyond the immediate financial hit, scammers can steal credit card numbers, addresses, and even Social Security numbers, leading to identity theft that takes months to resolve.

For veterans and their families, there is an added risk: some scams specifically target military benefits or impersonate VA services. The same vigilance that protects your everyday purchases also safeguards your benefits and personal data.

What You Can Do: Practical Steps to Stay Safe

You do not need to be a cybersecurity expert to avoid most scams. A few habits go a long way.

Watch for red flags in offers and websites.
If a deal looks too good to be true—like a 90% discount on a popular item—it probably is. Scammers lure shoppers with impossibly low prices. Check the website URL: does it start with “https” (the ‘s’ matters) and show a padlock icon? Look for misspellings, broken grammar, or stock photos that seem generic. Legitimate retailers have clear contact information and a physical address.

Use secure payment methods.
Pay with a credit card or a service like PayPal whenever possible. Credit cards offer better fraud protection than debit cards, and PayPal adds a layer between the merchant and your bank details. Never wire money or pay with gift cards for online purchases—scammers prefer these because they are nearly impossible to trace or reverse.

Verify the seller before you buy.
If you encounter a store through a social media ad or an unsolicited email, do a quick search. Look for reviews from multiple sources, not just the seller’s own site. Check the Better Business Bureau or search “[store name] scam” to see if others have reported problems. For marketplace purchases (e.g., Facebook Marketplace), insist on meeting in a public place and use cash or a secure app payment, not a wire transfer.

Enable two-factor authentication (2FA) on your shopping accounts.
This adds a second step—usually a code sent to your phone—when logging in. Even if a scammer steals your password, they cannot access your account without that code. Use a unique, strong password for each online store; a password manager makes this manageable.

Know what to do if you fall victim.
Act quickly. Contact your bank or credit card issuer immediately to dispute the charge and freeze the card. Change the password on the compromised account and any other account that uses the same password. Place a fraud alert or freeze on your credit reports at Equifax, Experian, and TransUnion. Then report the scam to the Federal Trade Commission at ReportFraud.ftc.gov or to the Internet Crime Complaint Center (IC3) at ic3.gov. For veterans who suspect VA-related fraud, contact the VA Office of Inspector General.

Stay Informed Year-Round

Scams do not only happen during the holidays, although spikes occur then. Make it a habit to check consumer alerts from trusted sources like the FTC, the VA, and your state consumer protection office. The more you recognize the common patterns, the harder it is for scammers to catch you off guard.