How to Spot Online Shopping Scams: Tips from Government Agencies

Introduction

Online shopping has made buying nearly anything simple—but it has also opened the door to fraud that costs consumers billions every year. The FBI’s 2024 Internet Crime Report recorded over $10 billion in reported losses, with shopping scams consistently ranking among the top complaint categories. Veterans, military families, and everyday shoppers are all targets. Recent alerts from the VA, the FTC, and the FBI offer straightforward guidance that can help you avoid becoming a victim.

What happened

Government agencies have issued repeated warnings about the rise in online shopping scams. In January 2026, VA News published an article titled “Watch out for scams and stay safe while online shopping,” which specifically warned veterans about fraudulent websites, phishing emails, and deals that seem too good to be true. The FTC, in a December 2025 article on spotting health insurance scams, outlined similar red flags that apply broadly to any fraudulent offer. The FBI’s annual Internet Crime Report (May 2025) highlighted that personal and financial information is the primary target in these schemes, and losses continue to climb.

Scammers are becoming more sophisticated. They create fake online stores that look nearly identical to legitimate retailers, send phishing emails that mimic order confirmations or shipping notices, and set up fraudulent listings on social media marketplaces. The goal is almost always the same: trick you into handing over your payment details, personal information, or both.

Why it matters

Falling for an online shopping scam can mean more than losing the price of an item. The real cost often includes stolen credit card numbers, compromised bank accounts, and identity theft. For veterans and military families, who may have specific entitlements or benefits tied to government accounts, the risk is especially high. Scammers sometimes target those groups with fake military discounts or counterfeit GI Bill offers. Once fraudsters have your information, they can use it to file fake claims, open accounts in your name, or sell it on the dark web.

The impact goes beyond individual victims. Widespread scams erode trust in legitimate online marketplaces and put pressure on payment systems. The VA and other agencies push these warnings not only because they want to protect their beneficiaries but also because preventing fraud reduces the burden on public resources.

What readers can do

You don’t need to be a security expert to spot most online shopping scams. Here are concrete steps based on agency recommendations.

Before you buy:

  • Check the website carefully. Look for misspellings, poor grammar, or odd domain names (for example, “amaz0n-deals.com” instead of the real Amazon).
  • Search for contact information—a legitimate site will have a physical address and a working phone number or email. If you find only a web form or a single Gmail address, be wary.
  • Use a payment method that offers buyer protection. Credit cards and services like PayPal (when using the “goods and services” option) give you a way to dispute charges. Wire transfers, gift cards, and cryptocurrency are nearly impossible to recover.
  • Read reviews from third-party sites, but be skeptical: some scammers post fake positive reviews. Check multiple sources.

During checkout:

  • Always look for “https://” and a padlock icon in the address bar. That means the connection is encrypted. Still, it’s not a guarantee—fake sites can show a padlock too.
  • Never provide more information than necessary. A legitimate retailer does not need your Social Security number or your mother’s maiden name to process an order.
  • If a deal seems far too good to be true, it almost certainly is. A brand-new iPhone for $200 is a common bait.

If you are targeted:

  • If you realize you’ve given payment info to a scam site, contact your bank or credit card issuer immediately. They can freeze the card, reverse charges, and issue a replacement.
  • Change the passwords on any accounts that share the compromised credentials. Enable two-factor authentication where available.
  • Report the scam to the FTC at ReportFraud.ftc.gov. Veterans can also report to the VA’s fraud hotline (1-800-827-1000) or the VA Office of Inspector General. The FBI accepts reports through its Internet Crime Complaint Center (IC3) at ic3.gov.
  • Keep records of all communications, transaction IDs, and screenshots. They will help investigators and your financial institution.

Sources

  • “Watch out for scams and stay safe while online shopping,” VA News, Jan. 28, 2026.
  • “Spot Health Insurance Scams,” Federal Trade Commission, Dec. 2, 2025.
  • “FBI Releases Annual Internet Crime Report,” Federal Bureau of Investigation, May 13, 2025.
  • “Military Scams: How to Spot Them and Protect Your Community,” MOAA, Jul. 29, 2025.
  • “Navigating holiday shopping risks when shopping online,” VA News, Nov. 28, 2024.

Staying safe while shopping online doesn’t require paranoia—just a few habits that take seconds. Check before you click, use secure payment methods, and know where to turn if something goes wrong. These simple steps can save you time, money, and a lot of frustration.