How to spot and avoid online shopping scams

Online shopping is more popular than ever—and so are scams targeting it. Online shoppers are losing an estimated $119 billion each year to scammers, and scammers are getting better at making their schemes look like the real thing.

The good news is that a little knowledge goes a long way in protecting yourself. Knowing what to watch for can help you stay one step ahead. Here’s how to spot online shopping scams so you can shop with peace of mind.

Scams targeting online shoppers

Online shopping scams come in a few different forms, and they’re more sophisticated every year. Scammers are constantly finding new ways to mimic legitimate online retailers and trick shoppers into handing over their payment information. Here are some of the most common scams to be aware of:

• Fake websites. Scammers build fake and cloned websites designed to look like legitimate retailers. They may copy the branding, layout and product photos of a real company to trick you into entering your payment information. Once they have it, the “store” disappears—and so does your money.
• Fake social media ads. Fraudulent ads on social media platforms are some of the fastest-growing scams. These ads often promote trending products at steep discounts, linking to fake websites or social media stores. The product either never arrives or turns out to be a cheap knockoff of what was advertised. In some cases, these ads are part of phishing attempts designed to lure shoppers into clicking links that steal personal or payment information.
• Fake order scams. Some scammers operate what look like real online stores—complete with product listings, checkout processes and even order confirmations. But after you pay, your order never shows up. Follow-up attempts to contact the seller go nowhere.
• Free item and low shipping cost scams. If an offer promises a free product for just a small shipping fee, be cautious. These scams are designed to capture your credit card number and other sensitive information. The fine print often hides recurring charges and disputing them can be difficult.
• Seasonal scams. Scammers pay close attention to the calendar. Black Friday scams and other holiday season schemes are common. During busy times of year, fraudulent websites and fake ads spike sharply, taking advantage of the fact that shoppers are moving quickly, hunting for deals and are more likely to let their guard down.

6 red flags to look out for while shopping online

Scammers are good at what they do, but they almost always leave clues. The trick is knowing what to look for before you enter your payment information. Whether you’re browsing a new website or responding to a deal that showed up in your social media feed, these red flags can help you tell a legitimate retailer from a scam.

1. Unusual payment methods

Legitimate retailers accept traditional e-commerce payment methods like prepaid gift cards or credit cards. While gift cards are commonly used for legitimate gifting or promotions, requests to pay with gift cards—especially when a seller asks you to buy a card and share the number or PIN—are a common red flag. If a seller is pushing you to pay instead with a wire transfer, cryptocurrency or a peer-to-peer payment app like Zelle®, that could be a warning sign. These payment methods often offer less or different buyer protection than traditional credit card transactions, which is why scammers tend to prefer them.

2. Deals that seem too good to be true

If the price of a product seems unbelievably low, trust that instinct. Scammers use steep discounts to create excitement and get you to act before you think it through.

3. Suspicious URLs and poor website quality

Always check the web address before entering any personal or payment information. While many legitimate businesses now use a wide range of domain extensions like .net or .shop in addition to or instead of .com, take a closer look at URLs that closely imitate well-know brands or include misspellings, extra words or other odd variations. Poor grammar, spelling mistakes and low-quality images throughout the site are also red flags.

4. Lookalike domains

Some scammers register domain names that closely mimic well-known, popular brands—think “amaz0n.com” or “nikeshop.net.” These sites are designed to fool you at a glance, so always double-check the full URL before you shop.

5. Pressure tactics

Legitimate e-commerce retailers may use limited-time pricing or low-inventory messages, especially during sales events. Scammers, however, use extreme urgency to rush shoppers into a decision before they can verify the seller or the offer. Pressure tactics are more concerning when they're paired with unclear pricing, confusing return policies or aggressive pop-ups that make it hard to pause or review details like countdown timers, low-in-stock warnings and "buy now or lose this deal" messages. Scammers use urgency to push you into a purchase before you have time to do your research.

6. No contact information

Trustworthy online sellers will always provide a way to reach them: a phone number, email address or live chat. If you can’t find any contact information on a website, take that as a serious warning sign before you buy.

No single red flag guarantees a scam, but multiple warning signs appearing together should prompt you to slow down and take a closer look.

How to protect yourself from online scams

Staying safe while shopping online doesn’t have to be complicated. A few smart habits can go a long way toward keeping your personal and financial information secure. These steps can help save you a lot of headaches down the road:

• Set up alerts. Sign up for account alerts through your financial institution, so you’re notified of any unusual activity right away. The sooner you know about a suspicious charge, the faster you can act on it.
• Shop on legitimate websites. Stick to retailers you know and trust. If you’re buying from an unfamiliar store, do a little research first. Search the company name along with words like “review” or “scam” to see what other shoppers have experienced. You can also check the Better Business Bureau to verify whether a business is legitimate.
• Check the URL. Before entering any personal or payment information, take a close look at the web address. Make sure the URL starts with “https://”—the “s” stands for secure—and look for a padlock icon in your browser bar. Even a small difference in a domain name, like an extra letter or an unusual extension, can be a sign the site isn’t what it appears to be.
• Use secure connections. Avoid shopping on public Wi-Fi networks, where your information can be more easily intercepted. Use your home network or your phone’s mobile hotspot if you can. A virtual private network (VPN) adds an extra layer of protection if you frequently shop online.
• Click with caution. Be skeptical of links in emails, text messages and social media ads—even those that appear to come from retailers you recognize. When in doubt, go directly to the retailer’s website by typing the address into your browser instead of following a link.
• Monitor your accounts. Review your bank and credit card statements regularly so you can catch any unauthorized charges quickly. Setting up account alerts through your financial institution is an easy way to stay on top of any unusual activity.
• Keep proof of every purchase. Save your order confirmations, receipts and any communication with the seller. If something goes wrong, having a clear paper trail can make it easier to dispute a charge or report a scam.

What to do if you suspect a shopping scam

If something feels off about an online purchase—or you realize you’ve been scammed—don’t panic. Acting promptly can make a real difference in limiting the damage. Whether something feels off about a purchase or you’ve already seen an unauthorized charge on your account, here’s what to do.

Contact your financial institution

Contacting your financial institution is one of the first and most important steps you can take. Reach out to your bank or credit card issuer as soon as possible to report the fraudulent charge. The sooner you act, the better your chances of recovering your money. Credit cards in particular offer strong purchase protections that can work in your favor when disputing unauthorized charges.

Report the scam

Filing a report can help protect other shoppers and give authorities the information they need to track down scammers. The more details you can provide—the seller’s name, website URL, transaction amount and any communication you’ve had—the more useful your report will be. You can report online shopping scams to:

• The Federal Trade Commission (FTC)
• The Better Business Bureau (BBB)
• The FBI Internet Crime Complaint Center (IC3)

Submit a review

Leaving a review of your experience on Google, the BBB or other consumer review platforms is one of the simplest ways to protect other shoppers. Even a brief, factual account of what happened can warn someone else before they make the same mistake. Stick to the facts: what you ordered, what you paid, what happened and how the seller responded.

Navy Federal Credit Union can help you stay safe from scams

If you think your account has been affected by an online shopping scam, we’re here to help. Our advanced fraud monitoring systems scan your Navy Federal account around the clock for unusual activity. If we spot something suspicious, we’ll reach out to you right away. And thanks to our Zero Liability policy, you won’t be responsible for confirmed unauthorized transactions on your Navy Federal debit or credit card.

If you need to report fraud or dispute a charge, you can do it quickly through your online account or by calling us 24/7 at 1-888-842-6328. Visit our Security Center to learn more about how we protect you and to report fraud if needed.