How to Spot Online Shopping Scams and Protect Your Finances

The convenience of buying almost anything online has made e-commerce a part of daily life for most Americans. But that same convenience has also made online shoppers a prime target for fraud. Government agencies, including the Federal Trade Commission (FTC) and the Federal Bureau of Investigation (FBI), have reported a steady increase in online shopping scams over the past several years. In 2024 alone, the FBI’s Internet Crime Complaint Center received more than 880,000 complaints, with total losses exceeding $12.5 billion—a record high. A significant portion of those complaints involved online shopping fraud.

Veterans and military communities are especially vulnerable. The Department of Veterans Affairs has issued multiple alerts urging veterans to watch out for scams and stay safe while online shopping, noting that scammers often impersonate VA services or target those with fixed incomes. Whether you’re a seasoned online shopper or just starting out, understanding how these scams work can save you money and protect your personal information.

What happened

Online shopping scams take many forms, but they tend to follow a few predictable patterns.

Fake websites and lookalike stores. Scammers create sites that mimic well-known retailers or brand-name outlets, often with slightly altered URLs (e.g., “amaz0n-deals.com” instead of “amazon.com”). These sites advertise steep discounts on popular items to lure shoppers. Once you enter your payment details, the scammer either steals your card information or sends a counterfeit product—or nothing at all.

Phishing emails and fake order confirmations. You might receive an email that appears to be from a legitimate company like PayPal or Amazon, claiming there’s a problem with your order or that you’ve won a prize. The email contains a link that takes you to a lookalike login page, where you are prompted to enter your password or credit card number. According to FTC consumer advice, these emails often contain misspellings, unusual sender addresses, or a sense of urgency (“Act now to avoid account suspension”).

Social media marketplace fraud. Platforms like Facebook Marketplace, Instagram, and TikTok Shop have become hotbeds for scammers. They may advertise items that don’t exist, request payment via wire transfer or gift cards, and then disappear after receiving the money. A VA News article from January 2026 specifically warned veterans about scammers posing as fellow service members on social media to sell fake goods.

Payment scams and overpayment tricks. In some cases, a “buyer” on a platform like eBay or Craigslist offers to pay more than the asking price and asks for a refund of the difference. The original payment turns out to be fraudulent, leaving the seller out the refunded amount.

Why it matters

The financial and emotional toll of online shopping scams is significant. The FBI’s 2025 Internet Crime Report notes that victims of online shopping scams lost a median of $800 per incident in 2024. But the damage doesn’t stop there. Scammers often harvest personal data—names, addresses, phone numbers, and even Social Security numbers—that they use to commit identity theft.

For veterans, the risk is compounded. Scammers know that veterans may have access to disability benefits, VA healthcare, or military pensions. Impersonation schemes targeting VA beneficiaries have become common, as highlighted in a VA News piece on holiday shopping risks from November 2024. The VA advises that its official communications will never ask for payment or sensitive personal information via unsolicited emails or phone calls.

What readers can do

Staying safe while shopping online doesn’t require advanced technical skills. A few straightforward habits can dramatically reduce your risk.

Verify the seller or website before you buy. If you’re considering a deal from a site you’ve never heard of, search for the business name plus the word “scam.” Check reviews on trusted platforms like the Better Business Bureau or Trustpilot. Look for contact information, a physical address, and a clear return policy. If the URL uses “http://” instead of “https://” or contains odd characters, treat it as a red flag.

Pay with a credit card or a secure payment service. Credit cards offer stronger fraud protection than debit cards or wire transfers. Many card issuers allow you to dispute a charge if the item never arrives. Services like PayPal, Apple Pay, or Google Pay provide an additional layer of privacy by not sharing your full card number with the merchant.

Never pay by wire transfer, gift card, or cryptocurrency. Legitimate online retailers don’t ask for payment via MoneyGram, Western Union, or prepaid gift cards. If a seller insists on one of these methods, it’s almost certainly a scam.

Enable two-factor authentication on your accounts. Two-factor authentication (2FA) adds a second step—usually a code sent to your phone—when logging into accounts. This makes it harder for scammers to access your shopping profiles even if they obtain your password.

Watch for common red flags. Unusually low prices, poor grammar or typos in product descriptions, fake urgency (“Only 2 left!”), and requests for personal information beyond what’s necessary for shipping are all warning signs.

Monitor your accounts and freeze your credit if needed. Check your bank and credit card statements regularly for unauthorized charges. If you suspect your personal data has been compromised, consider placing a fraud alert or a credit freeze with the three major credit bureaus (Equifax, Experian, and TransUnion).

Report scams when you encounter them. If you fall victim—or even if you only spot a suspicious site—file a complaint with the FTC at ReportFraud.ftc.gov. You can also report to the FBI’s Internet Crime Complaint Center at ic3.gov. Reporting helps authorities track trends and shut down fraudulent operations.

Sources

  • “Watch out for scams and stay safe while online shopping,” VA News, January 28, 2026.
  • “FBI Releases Annual Internet Crime Report,” FBI, May 13, 2025.
  • “Spot Health Insurance Scams,” FTC Consumer Advice, December 2, 2025.
  • “Navigating holiday shopping risks when shopping online,” VA News, November 28, 2024.
  • “Military Scams: How to Spot Them and Protect Your Community,” MOAA, July 29, 2025.