Online shopping is convenient, fast and often cheaper. It is also one of the most common ways people lose money to fraud. Fake websites, too-good-to-be-true deals and marketplace sellers who disappear after payment catch thousands of shoppers every year.
The good news is that most scams follow recognizable patterns. Once you know the warning signs, you can shop online with much more confidence.
The most common types of online shopping scams
Fake online stores
Scammers create professional-looking websites that advertise popular products at large discounts. After payment, the product never arrives, or a cheap counterfeit shows up instead. These sites often appear through social media ads and disappear after a few weeks.
Marketplace and classified ad fraud
On peer-to-peer marketplaces, a fake seller asks for payment in advance for an item that does not exist. Fake buyers also target sellers with overpayment tricks or fake payment confirmations. Our article on how digital marketplaces are changing consumer behavior explains why these platforms are so popular, and so attractive to fraudsters.
Phishing messages
Emails or text messages pretend to come from a delivery company, a bank or a well-known retailer. They ask you to click a link to “confirm a delivery” or “update your payment”. The link leads to a fake page that collects your card number or login details.
Subscription traps
A free trial or a very cheap first purchase hides an automatic recurring charge in the fine print. Cancelling is made deliberately difficult.
Warning signs of a scam website
Before buying from a store you do not know, look for these red flags:
- Prices far below what every other retailer charges.
- A recently created site with no history, few real reviews or reviews that all sound alike.
- No physical address, no phone number or only a contact form.
- Spelling mistakes, poor translations and inconsistent product photos.
- Payment options limited to wire transfers, gift cards or cryptocurrency.
- A countdown timer or messages pushing you to buy immediately.
One red flag does not prove a site is fraudulent, but several together should make you stop.
Safe payment habits
How you pay is your most important protection.
- Use a credit card when possible. Credit cards generally offer dispute options if goods are not delivered.
- Never pay with gift cards, wire transfers or cryptocurrency for online purchases from unknown sellers. These payments are very difficult to recover.
- On marketplaces, avoid sending money before seeing the item in person.
- Check your statements regularly and report unknown charges to your bank immediately.
Protect your accounts and devices
Many shopping scams start with a stolen password. Basic digital hygiene goes a long way:
- Use a unique, strong password for each shopping account, ideally with a password manager.
- Turn on two-factor authentication wherever it is available.
- Keep your phone, computer and browser up to date.
- Avoid entering card details on public Wi-Fi networks.
- Type the retailer’s address yourself instead of clicking links in messages.
If you use smart devices at home, the same principles apply. See how smart technology is transforming modern homes for more context.
How to check a seller before you buy
Search for independent reviews
Search the store’s name with words like “reviews” or “scam”. Look for experiences on independent forums and review sites, not only testimonials on the store’s own pages.
Verify contact information
Call the phone number listed or send a question by email before buying. A legitimate business usually responds clearly.
Read the return and refund policy
A real retailer explains how returns work, who pays return shipping and how long refunds take. Vague or missing policies are a warning sign.
Extra caution with marketplace transactions
Peer-to-peer marketplaces are useful, but they require different habits than buying from an established retailer.
- Meet in a public place and inspect the item before paying.
- Be wary of sellers who refuse to meet, insist on shipping only or push you to move the conversation off the platform.
- As a seller, never accept a payment that is higher than your asking price with a request to send back the difference.
- Ignore “verification codes” that a stranger asks you to read back to them: these are often used to take over your account.
The same caution applies to large purchases such as vehicles. See our guide to buying a used car online for an example.
What to do if you have been scammed
Act quickly. The faster you respond, the better your chances of limiting the damage.
- Contact your bank or credit card issuer immediately to report the fraud and dispute the charge.
- Change passwords on any account that may be affected.
- Keep evidence: screenshots of the website, messages, receipts and payment confirmations.
- Report the fraud to your local police.
- Report it to national authorities. In Canada, the Government of Canada explains how to report fraud and scams on canada.ca.
Reporting helps authorities track scam patterns and warn other consumers, even if your money cannot be recovered.
Frequently asked questions
Is a padlock in the address bar proof that a site is safe?
No. The padlock only means the connection is encrypted. Scam websites can also use encryption, so check the other warning signs too.
Are deals on social media ads trustworthy?
Some are, but social media ads are a common entry point for fake stores. Research any unfamiliar retailer before buying.
Can I get my money back after an online shopping scam?
It depends on how you paid. Credit card payments are often easier to dispute than wire transfers, gift cards or cryptocurrency. Contact your financial institution as soon as possible.
How can I tell if a delivery text message is fake?
Be suspicious of unexpected messages with links, small fees to pay or urgent wording. Check the tracking number directly on the carrier’s official website or app.