Fake Online Store Scams
Americans lost $12.5 billion to fraud in 2024, according to the FTC.
Quick Answer
Fake online store scams lure shoppers with low prices and counterfeit websites, leading to nearly $400 million in losses from 376,830 reports to the FTC in 2023.
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How It Works
1
Scammers create convincing but fake retail websites, often mimicking legitimate brands or creating new ones. These sites are heavily advertised on social media platforms like Facebook and Instagram, using professional product images and descriptions stolen from real stores.
2
The fraudulent stores offer popular products like electronics, clothing, or beauty items at prices that are significantly lower than any competitor. These "too-good-to-be-true" deals are designed to attract bargain-hunters and create a sense of urgency with limited-time offers.
3
A customer places an order and provides their payment and personal information. After the payment is processed, the victim either receives nothing at all, a cheap counterfeit item, or a completely different product of low value. The website often disappears shortly after, and any provided contact information is fake, making it impossible to get a refund.
Red Flags
- Prices are drastically lower than on any other website.
- The website URL has slight misspellings of a known brand or uses an unusual domain ending like .shop instead of .com.
- The site only accepts payment via wire transfer, cryptocurrency, or gift cards, and lacks secure options like credit cards or PayPal.
- Contact information is missing, vague, or non-functional. There is no physical address or phone number listed.
- The website design is unprofessional, with low-quality images, grammatical errors, and broken links.
- Customer reviews are either non-existent, overly generic and positive, or cannot be verified on third-party sites.
- The website lacks an HTTPS secure connection, indicated by the absence of a padlock icon in the address bar.
What to Do If Targeted
- Immediately contact your bank or credit card company to report the fraudulent charge, request a chargeback, and cancel your card to prevent further losses.
- If you created an account on the fake site, change the password immediately, especially if you reuse that password for other accounts.
- Stop all communication with the fraudulent seller.
- Run a scan on your devices for any potential malware if you downloaded anything from the site.
- File a detailed report with law enforcement and consumer protection agencies to help them track and combat these scams.
- Keep records of all transactions and communications with the fraudulent store for your bank and official reports.
How to Report It
- FTC — Report the fraudulent website to the Federal Trade Commission to help their investigators and protect other consumers.
- FBI IC3 — File a complaint with the FBI's Internet Crime Complaint Center (IC3) for any suspected cyber-enabled criminal activity.
- BBB — Report the scam to the Better Business Bureau's Scam Tracker to warn other potential shoppers.
- FCC — File a complaint about phone scams, robocalls, or unwanted calls with the Federal Communications Commission.
- AARP Fraud Helpline — Call 877-908-3360 for free support from trained fraud specialists. Available to anyone, not just AARP members.
Key Statistics
- Consumers reported losing nearly $400 million to online shopping fraud in 2023, based on 376,830 reports. — Federal Trade Commission (FTC) 2024
- Online purchase scams were the third riskiest scam in 2023, and more than 82% of people targeted by them lost money. — BBB 2023 Scam Tracker Risk Report
- In 2023, the median loss for an online purchase scam was $71. — BBB 2023 Scam Tracker Risk Report
- Online shopping issues were the second most commonly reported fraud category to the FTC in 2024. — Federal Trade Commission (FTC) 2025
- Scams originating on social media resulted in $1.9 billion in losses in 2024, with many being fraudulent online stores. — Federal Trade Commission (FTC) 2025
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Frequently Asked Questions
A fake online store scam involves a fraudulent website that appears to be a legitimate retailer. These sites lure customers with low prices, but after taking payment, they either send a counterfeit product, a completely different item, or nothing at all. The website often disappears after making a number of sales.
Look for red flags such as prices that are too good to be true, a website URL with misspellings or an odd domain, and a lack of secure payment options like credit cards. Legitimate stores provide clear contact information and professional website design, whereas scam sites often have grammatical errors, no physical address, and only accept payments via wire transfer or crypto.
If you paid with a credit card, you can contact your card issuer immediately to dispute the charge and request a chargeback, which has a high chance of success. Recovering money sent via debit card, wire transfer, or cryptocurrency is much more difficult, but you should still report the fraud to your bank right away. Always report the scam to the FTC at reportfraud.ftc.gov.
Yes, online shopping scams are extremely common. In 2023, online purchase scams were the third riskiest scam type reported to the Better Business Bureau, with over 82% of people targeted losing money. The Federal Trade Commission (FTC) received 376,830 reports related to online shopping fraud in 2023, totaling nearly $400 million in losses.
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