Payment and Shopping Scams

The Rise of Online Shopping Scams

Fake online stores and payment scams steal billions of dollars every year. Attackers create convincing shopping websites, steal payment information, and disappear with your money.

Types of Shopping Scams

• Fake online stores: Entire websites that look legitimate but never ship products
• Too-good-to-be-true deals: Luxury items at impossibly low prices
• Social media shopping scams: Ads for products that do not exist or are vastly different from advertised
• Counterfeit goods: Knockoffs sold as genuine brand-name products
• Non-delivery scams: You pay but never receive anything
• Credit card skimmers: Malicious code on checkout pages that steals your card info

Red Flags Before You Buy

• Prices are significantly lower than other retailers
• The website is new or has no reviews
• Contact information is missing or only a web form
• Poor grammar, spelling errors, or awkward language
• No clear return policy or terms of service
• Only accepts unusual payment methods (wire transfer, gift cards, cryptocurrency)
• Pressure tactics like countdown timers or "only 2 left"

How to Verify a Store

1. Search for the store name plus "scam" or "reviews"
2. Check when the domain was registered (very new domains are suspicious)
3. Look for a physical address and phone number
4. Check the Better Business Bureau or consumer protection sites
5. See if the store has social media presence with real engagement

Safe Payment Practices

• Use credit cards instead of debit cards (better fraud protection)
• Consider using PayPal or virtual card numbers for unfamiliar stores
• Never pay via wire transfer, gift cards, or cryptocurrency
• Check for HTTPS on checkout pages (but remember, scam sites can have HTTPS too)
• Do not save payment information on sites you rarely use

Credit Card Skimmers

Attackers inject malicious code into legitimate checkout pages to steal card details:

• Even trusted stores can be compromised
• The page looks normal while silently capturing your data
• Monitor your statements for unexpected charges
• Use virtual card numbers when available

If You Have Been Scammed

1. Contact your bank or credit card company immediately
2. Dispute the charge and request a chargeback
3. Report the scam to the FTC at reportfraud.ftc.gov
4. Save all evidence: emails, receipts, screenshots
5. Monitor your credit report for identity theft

Key Takeaways

• If a deal seems too good to be true, it probably is
• Research unfamiliar stores before buying
• Use credit cards for better fraud protection
• Never pay with wire transfers or gift cards
• Monitor your statements regularly