Online Shopping Scams: How to Spot and Avoid Them

Online shopping scams remain one of the most persistent threats for consumers. Law enforcement and consumer protection agencies—including the Department of Veterans Affairs and the Federal Deposit Insurance Corporation—regularly issue alerts about new variations of these frauds. Whether you are a frequent online shopper or only buy occasionally during sale periods, understanding how these scams work and what to watch for can save you money and protect your personal information.

What’s Happening

Scammers are constantly refining their tactics. Recent government warnings highlight several common patterns:

  • Fake websites that mimic legitimate retailers, often with slight misspellings in the URL (e.g., “amaz0n.com”). The VA News website has specifically urged consumers to watch out for scams and stay safe while online shopping, noting that fraudulent sites are increasingly sophisticated and can appear in search results paid for by scammers.

  • Phishing emails and texts that claim to be order confirmations or shipping updates. These messages often contain links that lead to credential harvesting pages designed to steal your login details and financial information.

  • Social media ads that promote unbelievable deals on popular items. According to the FDIC, scammers also create fake banking institutions to process payments, making it harder to recover money once it’s sent.

  • Fake customer support. After a purchase, scammers may contact you impersonating the retailer, asking you to “verify” account details or install remote access software.

  • Identity verification services like ID.me have also become a target. As Fox News reported, users need to be cautious about phishing attempts that mimic verification portals, especially when accessing government benefit sites.

Why It Matters

The consequences go beyond losing money on a single purchase. Scammers often collect enough personal data to commit identity theft—opening credit accounts, filing fraudulent tax returns, or draining bank accounts. The financial impact can be severe and time-consuming to resolve. Additionally, for veterans and others who use ID.me to access benefits, a compromised account could lead to stolen benefits or delayed access to critical services.

According to VA News articles from 2024 and 2025, scam losses reported by consumers have climbed during high-shopping periods like Black Friday and Cyber Monday. The FDIC warns that fake banks are designed to look legitimate, complete with professional websites and even fake FDIC logos, tricking people into trusting them with deposits or payment information.

What Readers Can Do

You don’t need to be a cybersecurity expert to stay safe. These practical steps cover the most common threats:

Identify Fake Websites and Offers

  • Check the URL carefully before entering payment information. Look for misspellings or odd domain extensions (e.g., “.shop” instead of “.com”).
  • Use a site like the Better Business Bureau’s Scam Tracker or the FTC’s complaint database to search for reports about a retailer.
  • Verify HTTPS encryption, but know that a padlock icon alone does not guarantee a site is legitimate—it only means the connection is encrypted.

Recognize Phishing Emails and Social Media Ads

  • Be suspicious of unsolicited emails that contain urgent language (“Your account will be suspended unless you confirm now”) or requests for personal information.
  • Hover over any link in an email before clicking; if the displayed address doesn’t match the legitimate company’s domain, do not click.
  • Social media ads that offer luxury goods at 90% off are almost always scams. Stick to shopping from brands you know and trust.

Use Safe Payment Methods

  • Use a credit card rather than a debit card. Credit cards offer stronger fraud protection, and you can dispute charges before paying.
  • Avoid wire transfers, gift cards, and cryptocurrency. Legitimate retailers will never ask you to pay with gift cards or wire money. If a seller insists on these methods, it is almost certainly a scam.
  • If you need to use a verification service like ID.me, go directly to the official website (e.g., id.me) rather than clicking links in emails. The Fox News piece recommends bookmarking the portal to avoid phishing redirects.

What to Do if You’re Scammed

  1. Contact your bank or credit card company immediately to freeze the account and dispute the charge.
  2. Change passwords for the affected accounts and enable two-factor authentication.
  3. Report the scam to the Federal Trade Commission (FTC.gov) and, if it involved a bank impersonation, to the FDIC (fdic.gov).
  4. Monitor your credit for free at AnnualCreditReport.com (once per week from each bureau through the end of 2026). Place a fraud alert if you suspect identity theft.

Bonus: Staying Safe with ID.me

Given recent warnings, if you use ID.me for veteran benefits or other government services:

  • Never provide your password or verification code to anyone who contacts you unsolicited.
  • Use the official ID.me app or website directly.
  • Report any suspicious emails claiming to be from ID.me to their support team.

Sources

  • VA News – “Watch out for scams and stay safe while online shopping” (January 2026)
  • VA News – “Shopping for the real deal” (December 2024)
  • VA News – “Navigating holiday shopping risks when shopping online” (November 2024)
  • VA News – “Online safety measures for the Veteran community” (December 2024)
  • Fox News – “Is ID.me safe to use? What you need to know” (May 2026)
  • FDIC – “Scammers and Fake Banks” (August 2024)