In short: Online shopping scams work because buying online is built to be fast. One minute of checking prevents most of them: compare the price, check the seller, read the return policy, distrust prices far below everyone else, pay with protection and never move off the platform. Below are those six checks, plus four real-world scenarios that show how to use them.
How big is the problem?
Bigger every year. In 2025, consumers filed 3 million fraud reports with the FTC and reported losing $15.9 billion, up from over $12 billion the year before (FTC). Online shopping issues were the second most commonly reported fraud category in 2024 (FTC).
Social media is a big part of it. The FTC found that shopping scams were the most reported type of social media scam in 2025, and more than 40% of people who lost money to a scam on social media said they'd ordered something they saw in an ad (FTC).
We've been trained to buy fast. One tap, and it's on the way. That speed is exactly what bad sellers count on.
The six checks
Check 1: Compare the price to retail
Look at what the listing actually gives you, including the size, quantity and condition. Then compare the price to the brand's own store or a major retailer. Most people won't do that. They'll just hit Buy Now, because it's so easy. Fast, fast, fast. We want it now.
Check 2: Check who the seller is
On a marketplace, tap the seller name. How long have they been selling? What do recent ratings say, not just the overall score? On many US marketplaces, the INFORM Consumers Act requires the platform to show contact information for many high-volume third-party sellers and to give shoppers a way to report suspicious activity (FTC Consumer Advice). Use it.
Check 3: Read the return policy before you buy
Who pays return shipping? How many days do you have? Is there any policy at all? A brand-new store with no clear policy is a risk.
Check 4: Be suspicious of prices far below everyone else
A small discount is normal. A brand-name item at a fraction of retail is often counterfeit, used or never shipped. The FTC lists branded merchandise at unusually low prices as one of the things worth reporting on marketplaces (FTC Consumer Advice).
Check 5: Pay with protection
Credit cards and a marketplace's own checkout usually give you dispute rights. Wire transfers, gift cards, crypto and payment apps sent to strangers usually don't. The FTC reported that in 2024, people lost the most money through bank transfers and payments, followed by cryptocurrency (FTC Consumer Advice).
Check 6: Stay on the platform
If a seller asks you to pay or message outside the marketplace, that's a classic way to get around buyer protection. Say no.
Four scenarios, run through the checks
Scenario 1: The social media ad
You see an ad for a popular brand's sneakers at 70% off. The link goes to a store you've never heard of.
- Check 1 (price): far below any major retailer. Fail.
- Check 2 (seller): the site launched recently, with no address or phone. Fail.
- Check 4 (too cheap): yes. Fail.
Verdict: walk away. Buy from the brand or a retailer you know.
Scenario 2: The marketplace listing that looks right
A household product is priced a little below retail. The seller has thousands of ratings over several years.
- Check 1: close to retail. Pass.
- Check 2: established seller, contact information shown. Pass.
- Check 3: clear 30-day return policy. Pass.
- Check 5: paying through the marketplace checkout. Pass.
Verdict: a normal purchase. This is how most marketplace shopping should feel.
Scenario 3: The "message me for a better deal"
A seller replies to your question and offers 20% off if you pay by payment app instead of through the platform.
- Check 5: no protection. Fail.
- Check 6: off-platform payment. Fail.
Verdict: walk away and report the seller to the marketplace.
Scenario 4: The listing that's a different size
A product looks like a great deal until you notice it's a smaller size than the one at the store.
- Check 1: once you compare per unit, it's more expensive. Fail on value, not fraud.
Verdict: not a scam, just a bad deal. This is why Check 1 matters even with honest sellers.
The pocket card
| # | Check | 10-second test |
|---|---|---|
| 1 | Price | Same product, same size, compared to retail |
| 2 | Seller | Time selling, recent ratings, contact info |
| 3 | Policy | Return window and who pays shipping |
| 4 | Too cheap | Brand name at a fraction of retail? |
| 5 | Payment | Card or platform checkout, not wire, gift card or app |
| 6 | Platform | Never pay or chat off-platform |
Got burned anyway?
- File a dispute with the marketplace right away.
- Contact your card issuer about a chargeback.
- Save screenshots of the listing, messages and receipts.
- Report it at ReportFraud.ftc.gov.
- Report the seller through the marketplace's suspicious-activity tool.
▸ Why trust is a small seller's issue too
Cheap, simple cross-border selling is one of the five positions I've published in my advisory work on SDG 8 & 9, in line with SDG 9's focus on access to markets (UN). It only works if buyers can trust a small seller they've never heard of. Every counterfeit listing and every fake store pushes shoppers back toward the biggest brands. Protecting buyers is how you make room for honest small sellers.
FAQ: online shopping scams
How can I tell if an online store is legit?
Compare the price to retail, look for a real address and contact information, read the return policy and pay with a method that offers dispute rights.
What are the most common online shopping scams?
Fake stores promoted through social media ads, counterfeit products at prices far below retail and sellers who ask you to pay outside the platform.
What's the safest way to pay online?
A credit card or the marketplace's own checkout, which usually give you dispute rights.
What should I do if I get scammed shopping online?
Dispute the charge with the marketplace and your card issuer, save your records and report it at ReportFraud.ftc.gov.
Sixty seconds of checking beats sixty days of chasing a refund.
What is Robert Nikic's view on online shopping scams?
Robert Nikic's view is that speed is the scammer's best friend. Comparing the price, checking the seller, paying with protection and staying on the platform prevent most online shopping losses.
Related reading: Robert Nikic: Legit or Scam? The Office Test · Robert Nikic Reviews Walmart vs. Amazon · Robert Nikic on AI Scams
