What is an Online Purchase Scam?

Online purchase scams typically involve the purchase of products and/or services where the transaction occurs via a website or other online means. Scammers utilize online technology to offer attractive deals, but once the payment is made no product or service is delivered. 

Purchase scams can also involve counterfeit goods, the wrong item, fake tickets or fraudulent payments to someone selling online. A believable price is not proof that an offer is legitimate. Check the seller, the item and the payment protections before paying.

Considering a purchase from an unfamiliar seller?

Check the website’s domain age and work through five quick shopping questions before you pay. You’ll get practical steps based on what you find.

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An educational check. It does not verify sellers or guarantee delivery.

If the deal looks too good to be true, it probably is. Low price is the top reason victims purchased a product online and lost money. The top motivating factor for people who made a purchase and then lost money was the price. Don’t shop on price alone. 

  • Fake Check - Fraudsters pretend to purchase an item only to send a fake check and ask for a refund of the 'accidental' overpayment; by the time the victim realizes the check is bad they've already sent the funds from their account. Learn More
  • Wire Fraud - An individual is sent a payment significantly higher than an owed amount and is instructed to deposit the money in their bank account and wire transfer the excess funds back to the bank of the individual or company that sent it. Learn More
  • Charity fraud: Using deception to get money from individuals believing they are making donations to legitimate charity organizations, especially charities representing victims of natural disasters shortly after the incident occurs. Learn More
  • Non-payment of funds: Fraud occurs when goods and services are shipped or rendered but payment for them is never received.
  • Re-shipping scheme: An individual is recruited to receive merchandise at their place of residence and subsequently repackage the items for shipment, usually abroad. Unbeknownst to them, the merchandise was purchased with fraudulent credit cards, often opened in their name. Learn More
  • Auction - Non-delivery of goods or failure to ship merchandise is the simplest type of auction fraud. A seller lists an item, the item is purchased, the seller collects the funds, and the seller does not send the item.  Sometimes, this type of fraud is done as part of a larger phishing scam in which a shill auction is set up solely for the purposes of obtaining credit card information or other details from a buyer. In other cases, however, the goal is simply to take buyer funds without properly following through on the transaction. Learn More
  • Fake Ticket Scams: Sellers may offer nonexistent, copied or already-transferred tickets to concerts, sporting events and other attractions. Start with the venue's official website to find its ticket seller and approved resale options. A screenshot or emailed image is not proof of a valid ticket; some mobile tickets require a changing barcode. Check the event's delivery and transfer rules, and use the ticket issuer's official transfer process when required. Learn more: Avoid ticket scams
  • Online Marketplace and Classifieds Scams: A fake seller may demand a deposit for an item they do not own. A fake buyer may send a fabricated payment notice or ask you to pay an account-upgrade fee to receive money. Check the transaction independently in the official app and use the marketplace's approved process. Learn more: Avoid online classifieds scams
  • Discount Travel Fraud: Criminals may sell heavily discounted travel purchased with stolen payment information. A real booking confirmation does not prove the purchase was legitimate, and the reservation may later be canceled. Research the travel seller and verify arrangements with the provider using independently obtained contact information. Learn more: Discount Travel Fraud

Tips for avoiding Online Purchase Fraud:

  • Purchase merchandise from reputable dealers or establishments.
  • Purchase merchandise directly from the individual/company that holds the trademark, copyright, or patent.
  • Make sure you are purchasing merchandise from a reputable source.
  • Do your homework on the individual or company to ensure that they are legitimate.
  • Obtain a physical address rather than simply a post office box and a telephone number, and call the seller to see if the telephone number is correct and working.
  • Send an e-mail to the seller to make sure the e-mail address is active, and be wary of those that utilize free e-mail services where a credit card wasn’t required to open the account.
  • Check with the Better Business Bureau from the seller’s area.
  • Be cautious when responding to special investment offers, especially through unsolicited e-mail.
  • Be cautious when dealing with individuals/companies from outside your own country.
  • Inquire about returns and warranties.
  • If possible, purchase items online using your credit card, because you can often dispute the charges if something goes wrong.
  • Make sure the transaction is secure when you electronically send your credit card numbers.
  • Consider using an alternate payment service.
  • Use secure and traceable transactions. Avoid paying by wire transfer, prepaid money card, gift card, or other non-traditional payment methods.
  • That shipment tracking information you received might be fake. Don’t just click on the tracking link; go to the shipper’s website and type in the code yourself to see if it’s real.
  • Be careful purchasing sought-after products, especially during the holiday season. The risk of online purchase scams rises during the holidays because more people are making online purchases, but also because scammers are offering the most popular products for the season at great prices.
  • Check buyer-protection eligibility. Read the marketplace or payment service's rules, exclusions and claim deadlines. Paying outside its approved checkout, or using a personal "friends and family" transfer for a purchase, may leave you without purchase protection.
  • Save evidence before a listing disappears. Keep the product description, seller's name, promised shipping date, return policy, receipt and messages. Check the total price and whether a purchase includes a subscription or automatic renewal.
  • Protect yourself when selling. Do not release an item based only on a screenshot, email or text claiming you were paid. Check your own account independently. Never share a one-time security code with a buyer or seller, or send money to a stranger to unlock a supposed payment.

Use several checks together. A working phone number, physical address or positive review does not prove a seller is legitimate. Free email services or an overseas location do not, by themselves, prove fraud either. Legitimate authorized resellers can also be appropriate places to buy.

Beware of fake websites. 

Don’t judge a person or company by their website; flashy websites can be set up quickly.  Click here for free online tools to check a website domain.
  • Check the URL for errors/inconsistencies. 
  • Watch for bad grammar. 
  • Beware of new domain names. 
  • Search for accessible contact information. 
  • Read online reviews about the company and/or website.
  • Check out other websites regarding this person/company.
  • Don’t believe everything you see. Scammers are great at mimicking official seals, fonts, and other details. Just because a website or email looks official does not mean it is.
  • Make sure the website is secure. Look for the "https" in the URL (the extra s is for "secure") and a small lock icon on the address bar. Never enter payment or personal information into a website with only “http” (it is not secure).
  • Understand what security indicators mean. HTTPS encrypts your connection; it does not verify the seller's honesty. Scam sites can use HTTPS, polished writing, copied logos and fake reviews. Domain age and professional appearance are clues, not guarantees.

Social Media

Like marketers for real companies, scammers have access to the tools they need to learn about your buying behaviors, offering up exactly what you want at enticing prices.
  • Beware of making quick purchases while scrolling social media.
  • Do not treat an advertisement as verification. A sponsored post or offer shared by a familiar account can still lead to a fake store. Check a claimed brand sale through the brand's official website.
  • Watch for fake customer support. After you post about a missing order, a scammer may reply pretending to be the retailer or payment company. Open the company's official app or website to reach support instead of following an unexpected reply. Learn more: Social media "Angler Phishing"

Tips for Avoiding Internet Auction Fraud:

  • Understand as much as possible about how the auction works, what your obligations are as a buyer, and what the seller's obligations are before you bid.
  • Find out what actions the website/company takes if a problem occurs and consider insuring the transaction and shipment.
  • Learn as much as possible about the seller, especially if the only information you have is an e-mail address. If it is a business, check the Better Business Bureau where the seller/business is located.
  • Examine the feedback on the seller.
  • Determine what method of payment the seller is asking from the buyer and where he/she is asking to send payment.
  • If possible, purchase items online using your credit card, because you can often dispute the charges if something goes wrong.
  • Be cautious when dealing with sellers outside the United States. If a problem occurs with the auction transaction, it could be much more difficult to rectify.
  • Ask the seller about when delivery can be expected and whether the merchandise is covered by a warranty or can be exchanged if there is a problem.
  • Make sure there are no unexpected costs, including whether shipping and handling are included in the auction price.
  • There should be no reason to give out your social security number or driver's license number to the seller.
  • Verify unusual identity requests. Ordinary purchases generally do not require your Social Security number or identity document. Financing and certain regulated transactions can have different requirements; verify the business, purpose and secure submission method independently before sharing sensitive information.

If Your Purchase Goes Wrong

  1. Check delivery independently. Use the carrier's official website. A tracking number marked "delivered" may refer to a different shipment. Ask the carrier about mismatched details and save its response.
  2. Keep proof and request a resolution. Save the listing, receipt, messages and tracking records. Photograph incorrect or damaged items. Contact the seller through official channels and open a marketplace claim within its deadline.
  3. Contact your payment provider promptly. Explain whether the issue is nondelivery, the wrong item or an unauthorized charge. Do not let repeated promises from the seller delay a dispute. A debit-card purchase you authorized does not automatically become an unauthorized transfer because the seller failed to deliver; ask about applicable dispute and recovery options.
  4. Report suspected fraud and secure affected accounts. Notify the marketplace and your bank, card issuer or payment provider. Report scams at ReportFraud.ftc.gov. If a password was exposed, change it on that account and anywhere else you reused it. Do not pay someone who unexpectedly offers to recover your money for an upfront fee.

Do not miss credit-card dispute deadlines. To preserve federal billing-error rights, written notice generally must reach your issuer within 60 calendar days after it sends the first statement showing the error. Use its designated billing-inquiry address or an electronic method it expressly accepts for those notices. A seller's promise to deliver later does not automatically extend that deadline. Report problems even if the deadline has passed, and ask which options remain. Continue paying amounts you do not dispute. Different protections apply to debit cards and other payment methods; refunds are not guaranteed.

Shipping delays: For most goods ordered online in the United States, sellers generally must ship within the promised time, or within 30 days after receiving a completed order if no time was stated. If they cannot, they must provide the required opportunity to accept a delay or cancel for a refund. This is a shipment rule, not a universal delivery deadline, and it does not cover services.