Fraud Education and Prevention Articles

Shopping Scams: How to Know When a Great Deal Is a Bad Deal

Oct 27, 2025

In 2022, Amelia Williford was in the market for a simple, inflatable backyard pool. Most, she found, cost around $350. But then, she came across one online on sale for $99, shipping included. The problem was, after she ordered it, it never arrived. She emailed to inquire about the order and got no response. That's when she got curious.

"I went online to the company and it was gone," she told KWCH 12 News in Wichita, Kansas.1 "The whole website was gone, just disappeared.”

Online shopping scams like the one Williford experienced were the top fraud with monetary loss reported to the Federal Trade Commission in 2024 across all age groups, from teens to age 69.2 In addition to being widespread, online shopping scams are widely varied, from AI-generated deepfake videos selling fake wellness products on Tiktok to bogus going-out-of-business sale ads, there's no one form an online shopping scam reliably takes.3 4

What's an online consumer to do against a cybercrime that successfully steals money from more than 82% of victims worldwide?5 Know what to look for.

With the holiday season a top money grab for fraudsters, here's what consumers should know about existing online shopping scams and how to identify red flags.


Types of Online Shopping Scams

Just digesting the Better Business Bureau's (BBB) webpage on online shopping scams is overwhelming.6 It lists 25 different types of online shopping scams, each with its own methods and outcomes. Here are some of the most common types consumers are likely to encounter: 


Fake Online Retailers

Here's the big one. Cybercriminals build a website that looks like a legitimate retailer, often with heavily discounted luxury items. These also tend to pop up as the holiday season nears. The site may mimic a trusted retailer or a popular shopping network, or it may look like a new brand.7 8 Sometimes scammers use an expired web address (think: a store that went out of business or rebranded) that had a good reputation to lure even savvy consumers.9

Victims who pay for items from these fake sites either never receive anything or get an item of fraudulently low quality. Some scammers even double-dip, telling the victim their credit card was declined and asking for another — only to charge both. In 2024, Infosecurity magazine reported on a network of scam retailers operating 22,500 sites.9

Subsets of fake online retailers include:

Bogus going-out-of-business sale ads, which may mimic a well-known retailer that is actually going out of business or simply take advantage of a challenging economy to seem authentic.10 These ads drive deal-seekers to fake online retailers. 

Out of stock scams delay victims' realization that they've been scammed by claiming the item they ordered was out of stock.11 The scammer may offer a refund that never goes through or promise to ship the item when it's back in stock — which never happens. 


Auction Scams

This scam is similar to fake retailers, but the scammer operates a fraudulent auction site, sometimes posing as a government agency auctioning off big-ticket items like vehicles. After they accept a bid and collect the winner's money — and sometimes the victim's driver's license info and other sensitive data — they disappear.12


Handmade Gifts Scam

Shoppers searching for special gifts can fall victim to fraudulent sellers on homecrafted goods sites like Etsy.13 These sellers have professional-looking photos and an attractive listing, but when the shopper goes to make a purchase, the seller asks the buyer to process the transaction on their personal website for a discount. This way, the victim doesn't have the protection of the host site when no gift (or an inferior version of it) arrives. 


Electronic Skimming

Heard of scammers putting devices on legitimate ATMs and gas pumps to steal info from every card swiped? It's a scam known as skimming. Now, there's an online version called e-skimming.14 Cybercriminals can hack into real retailers' sites and plant malicious software that sends them the card info. Victims only find out when suspicious purchases appear on their statements or they get a fraud alert from their credit card. 


Social Media Shopping Scams

The list of ways shoppers can be scammed on social media is as endless as, well, a social media feed. While the AI deepfake video influencer scams on TikTok mentioned above are among the flashiest, BBB lists the following among the more common shopping scams found on social media:3 6

  • Social media ad scams, where fraudulent coupons offering deep discounts, offers for phony vintage goods, bizarrely personalized items, or free trials prompt victims to click on malicious links leading to fake retailer websites.15 16 17 18

  • Facebook marketplace frauds happen when a seller of a high-dollar item like a car or boat assures the buyer they'll be able to view the item before closing the sale, but not before sending funds to a phony escrow service, often under a familiar name like "Amazon" or "eBay."19

  • Scammers lure members of buy-and-sell groups on Facebook to share innocent-seeming but urgent posts about a lost child or pet.20 After members start sharing the posts with their group, the scammer edits the post to become a shopping scam of some kind — one that is seemingly being endorsed and shared by a normally trustworthy member of the group.
Money and world wide web icon
Online shopping scams were the top fraud with monetary loss reported to the Federal Trade Commission across all age groups, from teens to age 69.

How to Avoid Online Shopping Scams

If online shopping scams are everywhere, and online shopping is commonplace, how can a consumer avoid becoming a victim? These tips can help: 

  • Be skeptical of too-good-to-be-true offers. Whether it's a huge discount or the availability of a hard-to-get item, it's rare for a wildly good deal to lead anywhere but to a scam.7

  • Research the retailer. If you're unfamiliar with the brand, search for the name of the company and "scam" or "complaint" to see if others have had issues.

  • Examine the website. You should see clearly posted return policies, contact information and other information about the company.21

  • When shopping on an online marketplace with many sellers, never grant a seller's request to pay through a different site. Only put payment information into a trusted marketplace's website with protections against fraud in place.

  • When clicking on a link to a known retailer's website, double-check the URL to make sure it's spelled correctly, is the expected web address and begins with “https://” and you see a padlock symbol in the address bar.

  • Never give a retailer more information than they need, like extra financial details or sensitive personal information.

  • Check a retailer's BBB ratings, accreditation and potential complaints on BBB.org.22

  • Pay for online purchases by credit card only.23 Credit card companies provide a layer of fraud protection and can often reverse scam charges. This is the only reason Williford got her money back after the pool purchase scam. This is why scammers love to ask for payment via gift cards, money order, crypto, or wire transfer.

  • If you want to buy an item you found on a platform that includes many sellers (like eBay or Etsy), always make the purchase on the platform — even if the seller offers a discount to do the transaction directly. Buyers lose the protection of the host site if they move the transaction elsewhere.13

  • Avoid purchasing anything from a Facebook ad that has comments turned off, even if a friend is sharing it. This can be a red flag that it's a scammer trying to avoid being outed. If your friend shares an ad that does have comments enabled, and you're interested in the product, send them a private message to ask about their experience with the product.20

  • Never make an impulse purchase, especially on social media. Seller research is especially important on social media, as some platforms have either no return policies or, in the case of TikTok, buyers only have six days to process a return.23

Shop online with care. And if you believe you've been a victim of shopping fraud, report your experience to the BBB, and follow the steps outlined in "What to Do if You Are a Victim of Fraud."24

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Important disclosure information

Asset allocation and diversifications do not ensure against loss. This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.

  1. Shawn Loging and KWCH Staff, "BBB: Online retail fraud nearing $380 million for the year," KWCH 12 News, published November 17, 2022.Accessed October 19, 2025. Back
  2. Federal Trade Commission, "Explore Age and Fraud Loss," FTC on Tableau Public, published April 24, 2025.Accessed October 19, 2025. Back
  3. Olivia Little, "Scammers seem to be using deepfake and AI-generated influencers on TikTok to sell you wellness products," Media Matters, published March 4, 2025. Accessed October 19, 2025. Back
  4. Better Business Bureau, "BBB Tip: Avoid bogus bargains at going out of business sales," BBB.org, published November 5, 2024. Accessed October 19, 2025. Back
  5. Daniela Coppola, "Percentage of online shopping scam victims who lost money from these attacks worldwide from 2015 to 2023," Statista, published April 28, 2025. Accessed October 19, 2025. Back
  6. Better Business Bureau, "Online shopping scams," BBB.org, accessed October 6, 2025. Back
  7. Deirdre van Dyk, "How to Spot Online Shopping Scams," AARP, published November 19, 2024. Accessed October 19, 2025. Back
  8. Better Business Bureau, "BBB Scam Alert: Buying from a televised shopping network? Watch out for impostors," BBB.org, published December 8, 2023. Accessed October 19, 2025. Back
  9. Phil Muncaster, "Fake Online Stores Scam Over 850,000 Shoppers," Infosecurity, published May 4, 2024. Accessed October 19, 2025. Back
  10. Better Business Bureau, "BBB Tip: Avoid bogus bargains at going out of business sales," BBB.org, published November 5, 2024. Accessed October 19, 2025. Back
  11. Better Business Bureau, "BBB Scam Alert: How to spot an out-of-stock scam before losing money," BBB.org, published December 9, 2024. Accessed October 19, 2025. Back
  12. Better Business Bureau, "BBB Scam Alert: Don’t place that bid yet! Be sure it's not an auction scam," BBB.org, published February 25, 2022. Accessed October 19, 2025. Back
  13. Better Business Bureau, "BBB Scam Alert: Don’t fall for this online seller trick when buying handmade gifts," BBB.org, published February 25, 2022. Accessed October 19, 2025. Back
  14. Better Business Bureau, "BBB Scam Alert: E-Skimming Targets Online Shoppers," BBB.org, published July 10, 2020. Accessed October 19, 2025. Back
  15. Better Business Bureau, "BBB Scam Alert: Watch out for fake coupons on social media," BBBorg, published October 31, 2024. Accessed October 19, 2025. Back
  16. Better Business Bureau, "BBB Scam Alert: Misleading ads trick online shoppers into buying phony vintage goods," BBB.org, published February 4, 2022. Accessed October 19, 2025. Back
  17. Better Business Bureau, "BBB Scam Alert: Watch out for phony personalized products on social media," BBB.org, published December 4, 2024. Accessed October 19, 2025. Back
  18. Better Business Bureau, "Think twice before buying from these social media ads," BBB.org. Accessed October 19, 2025. Back
  19. Better Business Bureau, "BBB Scam Alert: Shoppers beware of Facebook Marketplace cons," BBB.org, published March 13, 2023, accessed May 14, 2025. Back
  20. Better Business Bureau, "BBB Scam Alert: Facebook scams in local buy-and-sell groups are on the rise," BBB.org, published November 5, 2024, accessed May 14, 2025. Back
  21. Better Business Bureau, "BBB Tip: 6 things to look for when buying online," BBB.org, accessed May 14, 2025. Back
  22. Better Business Bureau, BBB.org, accessed May 14, 2025. Back
  23. Better Business Bureau, "BBB Tip: Be alert when shopping on TikTok," BBB.org, published November 1, 2022, accessed May 14, 2025. Back
  24. Better Business Bureau, "How can we help?,"accessed May 14, 2025. Back