Online Shopping Scams: How to Spot a Fake Store (2026)

How big the problem is

The FTC told Congress that in 2025 consumers submitted 3 million fraud reports and reported $15.9 billion in losses. That total covers all kinds of fraud, not just shopping, and the FTC says it is only a fraction of real losses because most victims never report. Two other details from the same testimony matter for shoppers. Credit card payments were the most frequently identified payment method in fraud reports. Bank payments, followed by cryptocurrency, produced the highest total losses.

Read together, those points show that a card is common because it is how most people pay, while bank transfers and crypto cost people the most when something goes wrong. The method you choose before checkout decides your options afterwards.

Four ways shoppers get caught

The fake store

A site looks professional, uses a brand’s product photos, and sells at a steep discount. The FTC says scam ads often use photos and logos taken from legitimate businesses, but the buyer does not receive authentic goods. You may get nothing, a cheap lookalike, or a notice that your order is delayed while a second charge is requested.

The shop found in a social media ad

Ads place unfamiliar stores directly in front of you, often with videos, countdown clocks, and comments that praise the product. The FTC’s testimony says social media was the contact method with the highest reported losses in 2025, at over $2 billion, across all fraud types. An ad shows that someone paid for space. It says nothing about whether the seller will ship.

The marketplace seller

Individual sellers on marketplaces and classified sites can be real or not. The warning signs are the same as elsewhere: a price too good to be true, an excuse for why you must pay outside the platform, and pressure to commit before you can ask questions. Staying inside the platform’s checkout keeps its protections available.

The non-delivery

Some sellers take payment and never ship, or send an empty box. The FTC says sellers must ship as promised in their ads, and if no time is promised, within 30 days after receiving your order and payment. If that deadline passes without shipment, contact the seller in writing and ask for a refund, then dispute the charge with your card issuer.

A five-minute store check

Do this before you enter a card number on any shop you have not used before. It takes less time than waiting for a refund.

1. Type the brand’s own web address and compare the product and price. If the brand sells it for much more, ask why this shop does not.
2. Search the store name plus “complaint” or “scam”, as the FTC suggests. Read the results, not just the first line. No results at all for a store that claims years in business is also a clue.
3. Find the contact page. Look for a physical address, a phone number, and a return policy written in plain language. Test the address on a map.
4. Read the full product description and fine print. The FTC notes that words like “refurbished” or “close-out” can mean the item is not in perfect condition.
5. Add up the total with shipping, handling, and taxes before you decide the price is a bargain.
6. Choose the payment method deliberately. If the checkout offers only a bank transfer, a payment app, or crypto, close the tab.

Seven checks before you pay

• The price is far below every other seller. The FTC says expensive brand-name items offered at bargain prices could be counterfeit or stolen. Compare the price with the brand’s own site and two other retailers. A deep discount on a popular product is the lure, not a lucky find.
• Nothing about the store can be checked outside the store. Search the store name with words like “complaint” or “scam”, as the FTC suggests. Look for a real street address, a working phone number, and clear return terms. A store that exists only inside one ad is a risk.
• The padlock is treated as proof. The FTC notes that the “s” in https means the connection is encrypted, not that the site is legitimate. Scammers can encrypt their sites too.
• Reviews that read alike or only praise. Do not rely on star ratings alone. The FTC warns that some reviews are fake, and some negative reviews are posted by competitors. Read several sources and check who wrote each review and what else they have reviewed.
• The seller wants gift cards, a wire, a payment app, or crypto. The FTC says to walk away from any seller that requires these methods. They make money hard to get back, and that is why scammers ask for them.
• The seller moves you off the platform. A marketplace seller who asks you to pay outside the app, continue on a messaging app, or use a “safer” payment link is stepping around the buyer protection you would otherwise have.
• The total changes at checkout. Compare the full cost including shipping, handling, taxes, and other fees. A seller who adds charges late, or asks for a second payment to “release” an order, is not behaving like a normal retailer.

Keep a paper trail from the start

The FTC advises saving the company name and website, your order details, the return policy, the shipping promise, every message with the seller, and your payment statements. Take screenshots of the product page and the ad, because both can disappear. A dispute with your card issuer is far easier when you can show what was promised and when you paid. If a seller will not answer, the FTC says to try to resolve the problem first and then report it at ReportFraud.ftc.gov.

After you order, watch what arrives

A fake store is not always the end of the scam. Once a shop has your email address and phone number, messages that look like order updates can follow, some with a link and a request for a “redelivery fee”. Check any such notice against your order confirmation and the carrier’s own website. The guide on toll and delivery text scams shows how those messages work and where to report them.

Reviews deserve the same caution as the shop. The FTC says to check several sources and look at who wrote a review and what else that person has reviewed. A page of five-star comments posted within a few days, all in the same style, tells you little. If a store has no reviews anywhere except on its own pages, treat it as unproven and buy elsewhere, or pay with a credit card and keep a small order first.

Which payment method protects you

The FTC’s “what to do if you were scammed” page lists the recovery route for each method. In short:

• Credit card: contact the issuer at once using the number on the card or in its app and ask for a refund. For a billing error, send a letter that reaches the company within 60 days of the first bill showing it.
• Debit card, bank transfer, Zelle: report to your bank or credit union right away and ask for a reversal. Protections exist but are narrower, and speed matters.
• Payment apps (Venmo, Cash App, PayPal): report to the app immediately and ask for a reversal. Use them for people you know, not for strangers.
• Gift cards, wire transfers: contact the card issuer or wire company straight away.
• Cryptocurrency: the FTC says there are fewer legal protections and recovery can be hard.

If you already paid a fake store

1. Call your card issuer or bank and dispute the charge. Say the goods were not as described or never arrived.
2. Stop paying. Do not send a “customs fee”, “redelivery fee”, or second payment.
3. Save evidence: the store name and web address, order number, ads, emails, and your statement.
4. Change passwords if you created an account on the site, especially if you reused one. If you entered card details, ask the issuer for a replacement card.
5. Report it at ReportFraud.ftc.gov, and to the platform where you saw the ad or listing.

Be careful about “refund” or “recovery” services that contact you afterwards. That can be a second scam. See recovery scams and urgent payment requests.

Official sources

• FTC: Online shopping
• FTC: What to do if you were scammed
• FTC testimony: The rising scam economy (2025 data)

Scambaba is an independent educational project. Consumer rights vary by country. In the UK and Australia, check your bank’s and your national regulator’s guidance. How these guides are researched is on the editorial policy.

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