Online Shopping Scams

Online shopping is very convenient!

In an age where online shopping is an everyday convenience, scams are growing in sophistication and frequency. According to the Pew Research Center, 73% of U.S. adults say they’ve experienced at least one online scam or cyber-attack, and 36% of U.S. adults say they purchased an item online that never arrived or was counterfeit and not refunded.. Moreover, fraud reports estimate that global e-commerce fraud losses reached US $44.3 billion in 2024 and are projected to hit US $48 billion in 2025.

This article will walk through what online shopping scams look like, how scammers operate, and what you can do to protect yourself.

What is an online shopping scam?

An online shopping scam occurs when a shopper attempts to buy goods or services online, but through deceitful means. Here are some examples:

• A retailer website may look legitimate, but either never delivers the goods, delivers counterfeits, or refuses refunds.

• Scammers may lure you with deeply discounted or “too good to be true” offers, collecting payment but never shipping anything.

• They may impersonate a legitimate brand, social-media post, or use fake reviews to build credibility trust.

• Payment may be requested via untraceable means, such as gift cards, cryptocurrency, or wire transfer, that leave you with little recourse if things go sour.

For example, one study found that among people targeted by a fake shopping website scam, 84% engaged with it and 47% reported losing money.

Why are these scams increasing?

Several factors combine to make online shopping fraud a growing threat:

• Ease of setting up fake stores: Scammers can quickly spin up websites, use stolen brand graphics or domain names that resemble legitimate retailers. These sites may operate only briefly before vanishing.

• High volume of online purchases: With more people shopping online, there are more opportunities for fraud.

• Advanced tactics: Scammers are increasingly using tools like synthetic identities, AI-generated content, and deep-fake images to appear credible.

• Under-reporting and difficulty recovering funds: Many victims don’t report the crime out of embarrassment or a feeling that nothing can be done, and money paid by means like gift cards or crypto is very hard to recover.

Common types of online shopping scams

Here are several popular tactics used by scammers:

1. Fake retailer or “ghost” store: You find a website offering amazing discounts or “closing-down sale” deals. It looks professional, but it is not a real business. After you pay, you never get your item, or you receive something of extremely poor quality and no refund is accepted.

2. Impersonated brand on marketplace or social media: A scammer posts on social media or marketplace sites like Instagram or Facebook, claiming to sell a brand-name item at a great price. They may ask you to pay outside the platform so the platform’s buyer protections don’t apply.

3. Counterfeit or non-delivery: You order something that never arrives, or you receive a counterfeit version of what was advertised.

4. Payment diversion / pre-loading scam: The scammer usually asks for an unusual payment method, such as a wire transfer, gift card, or with cryptocurrency. Or, they redirect you to enter your card details on a site that captures them for later fraudulent use.

5. Fake “too good to be true” deals to build trust, then upsell: You are offered a very good deal to establish trust, then you’re asked for additional purchases, upgrades, shipping fees, or asked to pay more before the “deal” can be unlocked.

   
   

How to spot the red flags

Here are warning signs that a shopping site or deal may be a scam:

A) Prices far below market value: If a designer item is offered at 90% off, ask why.

B) Unusual payment methods: If you are asked to pay by wire transfer, crypto, gift card, or via Venmo/Zelle, rather than with a standard credit card, that’s a major red flag. If the payment method offers no way to recover funds, you have little recourse if you end up being scammed.

C) Poor website details: No clear return policy, no physical address, no phone number, very recent domain registration, or poor grammar and spelling, all indicate that the seller may not be legitimate.

D) Excessive pressure and urgency: “Offer ends in 10 minutes”, “Only you can get this deal”, constant push to act without thinking. Scammers love to create that sense of urgency to get you to react without putting a lot of thought into it.

E) Social-media influencer or ad-heavy site: Many fake stores are advertised via paid ads or influencers, but have minimal reviews or only very recent ones. In addition, AI is allowing scammers to create deep fake ads that make it look like an endorsement from a trusted celebrity or politician.

F) Check reviews external to the site: Before making your purchase, grab your trusty search engine and search for the seller or brand name and the word “scam” or “reviews”.

G) Website URL oddities: Watch for ".net" vs ".com", hyphens, misspellings, or URLs that look a little different than the real store.

How you can protect yourself

Here are concrete steps you can take to prevent becoming a victim:

Before you purchase

• Stick to reputable sites: Use known retailers, or if using lesser-known stores, verify their legitimacy via reviews, Better Business Bureau, Trustpilot, and a trysty search engine search.

• Use credit card or a payment method with fraud protection: Credit cards generally offer more protection than debit cards or bank transfers. Avoid paying with gift cards or crypto. These are extremely hard to trace and recover once sent.

• Check the domain registration: Use tools like WHOIS to see how long the domain has existed. If the domain was recently registered, be very cautious.

• Be cautious of social-media ads: Many scam stores appear through targeted ads rather than organic search.

  
  

After you purchase (or if you suspect something is wrong)

1. Keep documentation: Save order confirmations, screenshots of the product page, and emails from the seller.

2. Monitor your payment statements: Look for unauthorized charges or suspicious recurring payments. If you gave them your credit card details, lock your card and request a new number from the credit card company.

3. If the product never arrives or is clearly wrong: Contact your payment provider or credit card issuer to dispute the charge if the company does not offer a replacement or refund.

4. Report the scam: In the U.S., you can report the scam to Federal Trade Commission or your state consumer protection agency. The more reports, the better and quicker law enforcement can act.

5. Change passwords and check security: If you reused a password for your account with that website, change the passwords on other sites that use the reused password. This is an excellent example of why every login account you use should have a password unique to that site, and use two factor authentication (2FA) if possible.

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Think before you click!

Online shopping scams are not just an annoyance, they are a major and growing threat. With fraud losses climbing into the tens of billions, consumers must stay vigilant. But the good news is that by using a few simple protective habits, such as verifying legitimacy, using secure payment methods, and being skeptical of super-cheap offers, you can drastically reduce your risk.

Learn how you can protect yourself or your family by enrolling in the Complete Internet Security Basics and Phishing Awareness Course for Parents on TrainMyParent.com

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