With so many enticing deals popping up in your inbox and social feeds, it can feel like a race to click “buy.” But online shopping scams are more sophisticated than ever, and most victims end up losing money. How can you protect yourself? By learning the telltale red flags, like misleading fine print to fake store fronts, and taking smart steps to shop safely.
According to the latest Better Business Bureau (BBB) Scam Tracker Risk Report, online purchase scams continued to be the most reported scam type in 2024. These scams reportedly lead to lost money over 80 percent of the time, making them the riskiest scam category.
What’s more, the Federal Trade Commission (FTC) estimated that consumers lost $432 million to online shopping fraud in 2024 alone.
As scammers grow more creative, it’s important to know what traps to watch out for when shopping online. With that in mind, we turned to the Better Business Bureau to break down the most common online shopping scams, plus advice on how to spot them.
“Before you spend money online, I suggest you take a deep breath and pause,” says Marilyn Mott, a community outreach director at the 112-year-old nonprofit. “If you’re unsure if a deal is legitimate, ask a friend, ask your family, do some research.”
Online shopping scams to know about
Before you fill your cart, it helps to understand exactly what kinds of scams are out there and how they work.
False advertisements: Some products look like a million bucks when viewed online but cost much less. Often, there’s a catch. Lookalike products may actually be spoofs, or the item’s quality could disappoint in real life (think polyester advertised as cashmere). This could happen with clothing items, shoes, digital devices, and more.
Misleading fine print: If a deal doesn’t add up, double-check the details. Sometimes a buy-once deal locks you into a monthly (or weekly) recurring charge. The return policy might be unfavorable to shoppers, requiring them to pay for shipping to foreign countries. Or the customer service might be poor or non-existent. Fine print can be buried in unexpected places, such as on a checkout screen or behind a hyperlink.
Hot bargains: “It’s 90% discounted! Act now!” It’s tough to resist a deal. But if something sounds too good to be true, it probably is. Or worse, the online store itself could be fake, designed to capture your money or personal information. Criminals aim to entice you with a good deal, so you’ll act with urgency, rather than thinking things through. Criminals are also increasingly promoting fraudulent stores through social media ads, influencer partnerships, and sponsored content that appears legitimate.
Freebies: What’s more enticing than a deal? A freebie. Whether it’s a free trial, a prize, or a mysterious award, it’s suspicious when someone offers to give you something for nothing in exchange. Freebies can be tools for fraudsters to extract personal information from their targets. It can be difficult to halt recurring charges and cancel shipments once you’ve disclosed your information.
How to protect yourself from online shopping scams
Luckily, there are simple ways to protect yourself and shop confidently online. Use these tips before you enter your payment information and complete checkout.
Check model numbers to ensure you’re buying a real-deal item and not a lower quality lookalike. For Black Friday, for instance, some television manufacturers may release models offering fewer features or assembled with inexpensive components.
Enter URLs directly to avoid the fraudulent results that search engines can yield. Never click links in unsolicited emails, text messages, or social media DMs.
Be especially careful on mobile devices. When shopping through apps or ads, confirm you’re downloading apps from the official App Store or Google Play—and check that the retailer’s account is verified.
Shop only on secure websites by looking for “https” (“s” stands for secure, which signals encryption) in the address bar along with a small lock icon.
Avoid coupon sites and freebie offers that require you to give away information. If a pop-up or text demands you scan a QR code to claim a deal, think twice—it could lead to a fake site or a malicious download.
Pay with a credit card to minimize your financial risk. If the transaction ends up being fraudulent, you may be responsible for only a small amount (say, a $50 maximum).
Look for a phone number and address to confirm that a company exists in real life before making a purchase.
Read the fine print of purchase agreements to ensure that you don’t get stuck with a recurring charge or a no-refunds return policy.
Search “scam” or “complaint” alongside the company name to find potential problems.
Whenever possible, enable multi-factor authentication (MFA) on your shopping accounts. This adds an extra layer of security if your login credentials are ever stolen. And if you ever feel rushed or unsure, take a moment to pause. A legitimate seller won’t pressure you to act immediately.
Unfortunately, even the most careful shoppers can run into trouble sometimes. That’s why help is just a phone call away.
If you spot a scam or lose money, report it to the FTC Complaint Assistant or the BBB Scam Tracker. If you’re an Allstate Identity Protection member, you can give us a call and we’ll help you discern which deals are worth your hard-earned dollar. And if fraud should become identity theft, we’ll manage the recovery process from making phone calls to filing paperwork on your behalf when possible.
