Online Shopping Scams: How to Protect Your Money During Summer Sales and Back-to-School Shopping
Summer sales, special promotions, and back-to-school shopping events can be great opportunities to find deals—but they can also create opportunities for scammers. As more people shop online for clothing, electronics, school supplies, and everyday essentials, fraudsters are using fake websites, counterfeit products, and payment scams to steal money and personal information.
Knowing what to look for can help you shop with confidence and protect your finances.
How Online Shopping Scams Work
Online shopping scams often look legitimate at first glance. Fraudsters may create websites that closely resemble popular retailers, advertise deeply discounted products, or send promotional emails and social media ads designed to look like real offers.
Common online shopping scams include:
Fake Retail Websites
Scammers create websites that look professional and may use familiar logos, product images, and customer reviews. After a purchase is made, the item may never arrive—or the website may be collecting payment information for fraudulent use.
Counterfeit Products
Some websites and online marketplaces advertise brand-name products at unusually low prices. While you may receive an item, it may be a fake, poor quality, or significantly different from what was advertised.
Payment Scams
Fraudsters may ask shoppers to pay through unusual methods, such as wire transfers, gift cards, cryptocurrency, or payment links outside of trusted checkout systems. These payment methods can make it difficult to recover your money if something goes wrong.
Warning Signs of an Online Shopping Scam
Before making a purchase, look for these red flags:
- Prices that seem too good to be true: A steep discount on a popular item may be a sign of a scam.
- A website address that looks unusual: Check for misspellings, extra words, or unfamiliar domains.
- Limited or suspicious contact information: Legitimate businesses typically provide customer service information, a physical address, and clear return policies.
- Pressure to buy immediately: Scammers often create urgency by claiming an offer is expiring soon or supplies are running out.
- Unusual payment requests: Be cautious if a seller asks you to use payment methods that do not offer buyer protections.
- Poor reviews or no online presence: Research the seller before purchasing, especially from unfamiliar websites.
Tips for Safer Online Shopping
A few simple habits can help protect your money while shopping online:
Shop With Trusted Retailers
Use websites you know and recognize. If you discover a new retailer, take time to research the company before entering payment information.
Use Secure Payment Methods
Credit cards often provide additional protections for purchases, and using a secure payment method can make it easier to dispute unauthorized transactions. Avoid sending money through methods that offer little or no fraud protection.
Avoid Shopping on Public Wi-Fi
Public networks may not be secure. When making purchases or entering sensitive information, use a trusted internet connection whenever possible.
Check Website Security
Before entering personal or payment information, make sure the website uses secure encryption. Look for “https” at the beginning of the website address.
Monitor Your Accounts
Regularly review your bank and credit card accounts for unfamiliar transactions. The sooner you identify suspicious activity, the sooner you can take action.
What to Do If You Fall Victim to an Online Shopping Scam
If you believe you have been scammed, act quickly:
- Contact your financial institution: Report suspicious transactions and ask what steps you should take next.
- Contact the seller: If possible, request a refund or cancellation.
- Change your passwords: If you created an account on a fraudulent website, update your password—especially if you use it elsewhere.
- Monitor your accounts and credit: Watch for additional suspicious activity.
- Report the scam: Reporting fraud helps authorities track scams and protect others.
Protect Your Money This Shopping Season
Online shopping offers convenience, but staying alert is one of the best ways to protect your finances. Before clicking on a deal, take a moment to verify the website, research the seller, and make sure the purchase is worth the risk.
Affinity Federal Credit Union is committed to helping members protect their financial wellbeing with resources and tools to help identify fraud, monitor accounts, and make confident financial decisions. From secure digital banking features to fraud prevention education, Affinity is here to help you shop smarter and keep your money safe.
This summer and back-to-school season, remember: if a deal seems too good to be true, take a closer look before you click “buy.”