Shopping & Marketplace Scams
Learn how to shop safely online and recognize the warning signs of marketplace fraud.
What are Shopping & Marketplace Scams?
Shopping scams trick consumers into paying for products or services that either don't exist, are counterfeit, or are significantly misrepresented.
As more people shop online, especially seniors who may be new to e-commerce, scammers have created increasingly sophisticated ways to defraud shoppers. These scams can occur on legitimate shopping websites, through fake retail websites, on online marketplaces, or via classified ads.
Common shopping scam outcomes include:
- Paying for items that never arrive
- Receiving counterfeit or drastically different items than advertised
- Having your payment information stolen
- Being charged recurring fees you didn't authorize
- Having your identity stolen after providing personal information
Common Types of Shopping & Marketplace Scams
Be aware of these different forms of shopping fraud:
Fake Website Scams
Scammers create websites that mimic legitimate retailers, often with similar domains (like "amazonsale.com" instead of "amazon.com").
These sites lure shoppers with extremely low prices but either deliver counterfeit goods or nothing at all while stealing payment information.
Non-Delivery Scams
You pay for items that never arrive. Common on marketplace sites, classified ads, and social media selling platforms.
Scammers often claim shipping delays, customs issues, or other excuses before disappearing with your money.
Counterfeit Product Scams
You receive fake versions of brand-name products, which may be lower quality, non-functional, or even dangerous.
Common counterfeits include designer clothing, electronics, medications, and cosmetics sold at suspiciously low prices.
Subscription Trap Scams
You sign up for a "free trial" but are enrolled in costly recurring subscriptions with terms hidden in fine print.
These scams make cancellation difficult, often requiring phone calls during limited hours or complex cancellation procedures.
Price Comparison Scams
Fake price comparison websites steer you toward scam retailers or collect payment information through "exclusive discount" offers.
These sites often feature fabricated reviews and artificially inflated "regular prices" to make deals seem better.
Fake Review Scams
Scammers manipulate your trust by posting numerous fake positive reviews for poor-quality products or fraudulent sellers.
They may also use bots or paid reviewers to create an illusion of legitimacy and customer satisfaction.
Why Shopping Scams Target Seniors
Older adults are particularly vulnerable to shopping scams for several reasons:
Factors That Increase Risk
New to Online Shopping
Many seniors are relatively new to e-commerce and may be less familiar with how legitimate online retailers operate.
Seeking Bargains
Many older adults live on fixed incomes and are attracted to special deals, which scammers exploit with "too good to be true" offers.
Trust in Authority
Many seniors were raised to be trusting and may be more likely to believe official-looking websites or communications.
Common Shopping Scenarios
Health and Wellness Products
Scammers target seniors with "miracle" health products, medications, supplements, or medical devices at attractive prices.
Gift Purchases
When shopping for gifts for grandchildren or family, seniors might venture to unfamiliar websites offering popular items at discounted prices.
Home Goods and Services
Scammers advertise discounted home maintenance products, furniture, or appliances that never arrive or are significantly misrepresented.
Pandemic-Related Shopping Scams
Since the COVID-19 pandemic, online shopping has increased significantly among older adults. Scammers have adapted by:
- Creating fake websites selling scarce or in-demand items
- Offering counterfeit health and safety products
- Promoting fake delivery services for groceries and essentials
- Setting up fraudulent shopping assistance services targeting homebound seniors
Anatomy of a Shopping Scam: Red Flags to Watch For
Let's examine a typical fake shopping website to identify the warning signs:
Warning Signs on This Website
Suspicious URL
The website address is "discount-brand-electronics.com" rather than an official retailer domain like "bestbuy.com" or "samsung.com".
Unrealistic Discounts
Products are advertised at 80-90% off retail price—discounts that are simply too good to be true for current electronics.
Poor Grammar and Spelling
Product descriptions and website text contain obvious errors that legitimate retailers would catch.
Limited Contact Information
No phone number, physical address, or live chat—only a generic contact form or suspicious email address.
Unusual Payment Methods
Site only accepts payment methods that are difficult to trace or reverse, such as wire transfers, cryptocurrency, or gift cards.
Understanding Subscription Traps
Subscription traps are particularly deceptive. Here's how they typically work:
How Subscription Traps Operate
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Attractive Initial Offer
You see an advertisement for a free or very low-cost trial of a product—common examples include skin care products, supplements, weight loss pills, or streaming services.
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Hidden Terms in Fine Print
The small print (often barely readable or placed where you're unlikely to see it) states that by accepting the trial, you're enrolling in a subscription with automatic payments.
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Credit Card Required for "Shipping"
To get your "free" sample, you need to provide credit card information, supposedly just for shipping and handling fees.
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Short Trial Window
The trial period is often very short (sometimes just 14 days), and the time starts when you place the order, not when you receive the product.
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Difficult Cancellation
When you try to cancel, you discover you can only do so by calling a hard-to-reach customer service line during limited hours, or by sending a written letter to a specific address.
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Expensive Recurring Charges
If you don't cancel in time (which many people don't), you're billed for the full-priced product, often $80-$200, and enrolled in monthly shipments with similar charges.
Warning: Many subscription traps operate in a legally gray area by technically disclosing terms while making them extremely difficult to notice or understand. Always read the fine print carefully before providing payment information for "free" trials.
How to Protect Yourself from Shopping Scams
Follow these practices to shop safely online:
Shop on Familiar Websites
Stick to retailers you know and trust. Type the website address directly into your browser rather than clicking on links from emails or ads.
Research Unfamiliar Retailers
Before buying from a new site, search for reviews about the company. Include the word "scam" in your search (e.g., "NewStore.com scam") to find complaints.
Check for Secure Websites
Look for "https://" (not just "http://") at the beginning of the web address and a padlock icon in your browser's address bar.
Use Secure Payment Methods
Pay with credit cards (not debit cards) or secure services like PayPal that offer fraud protection. Avoid wire transfers, gift cards, or cryptocurrency.
Be Skeptical of Amazing Deals
If a price seems too good to be true—like a $1,000 laptop for $100—it probably is. Compare prices across multiple retailers.
Read the Fine Print
Before accepting "free trials" or special offers, carefully review the terms and conditions for information about automatic renewals or subscriptions.
Shopping Safety Checklist
Before Making a Purchase
- Verify the website address is correct (watch for typos like "Amaz0n.com")
- Check for contact information, including a phone number and physical address
- Look for clear return and refund policies
- Research the seller or company online
- Compare prices with other retailers
After Making a Purchase
- Save all order confirmations and receipts
- Track your shipment (legitimate retailers provide tracking information)
- Monitor your credit card or bank statements for unauthorized charges
- Keep records of all communication with the seller
- Test products carefully upon arrival
Safety Tips for Online Marketplaces
When buying from person-to-person marketplaces like Craigslist, Facebook Marketplace, or eBay:
Before the Transaction
- Check the seller's profile, ratings, and reviews if available
- Ask detailed questions about the item's condition, age, and history
- Request additional photos of the item from different angles
- Be wary of sellers who refuse to meet in person or speak on the phone
- Research the typical price range for the item to ensure it's not suspiciously low
- Be suspicious if the seller creates urgency ("many others are interested")
- Never wire money or send gift card information to marketplace sellers
For In-Person Transactions
- Meet in a public place with plenty of people around (many police stations offer "safe exchange zones")
- Bring a friend or family member with you
- Meet during daylight hours
- Inspect the item carefully before paying
- For electronics, test the item to ensure it works properly
- Pay with cash or secure payment apps (not checks or money orders)
- Trust your instincts—if something feels wrong, walk away
Note: Never invite strangers to your home or go to a seller's private residence alone. Always meet in public, well-lit locations for safety.
How to Spot Counterfeit Products
Counterfeit products can be difficult to identify online, but there are warning signs to watch for:
Price and Seller Red Flags
- Suspiciously Low Prices: If the price is dramatically lower than at authorized retailers, be skeptical
- Bulk Discounts: Be wary of sellers offering bulk quantities of luxury or brand-name items at steep discounts
- No Returns/Exchanges: Counterfeit sellers often have strict "no returns" policies or high restocking fees
- Unofficial Retailers: Products sold through unauthorized dealers are more likely to be counterfeit
- Stock Photos Only: Sellers using only manufacturer's stock photos instead of actual product photos
Product Quality Warning Signs
- Poor Packaging: Misspellings, blurry logos, or low-quality printing on packaging
- Missing Items: No warranty cards, manuals, or accessories that should come with the product
- Poor Craftsmanship: Uneven stitching, sloppy glue work, or cheaper materials than the genuine article
- Strange Smells: Unusual chemical odors, especially with cosmetics or perfumes
- Software Issues: With electronics, counterfeit products often have interface errors or can't be registered
Safety Warning: Counterfeit electronics, medications, and beauty products can be dangerous. Fake electronics may have substandard components that could cause fires, while counterfeit medications and cosmetics may contain harmful ingredients.
What to Do If You've Been Scammed
If you believe you've fallen victim to a shopping scam:
Act Quickly
- Contact your payment provider immediately:
- For credit cards, call the number on the back of your card to dispute the charge
- For PayPal or similar services, open a dispute through their resolution center
- For bank transfers, contact your bank to see if the payment can be stopped
- Document everything:
- Save all emails, order confirmations, and receipts
- Take screenshots of the website, especially terms and conditions
- Save any tracking information or shipping updates
- Keep records of all communication with the seller
- Try to contact the seller one time to request a refund (but don't expect a response from scammers)
Report the Scam
- Report to the Federal Trade Commission (FTC) at reportfraud.ftc.gov or call 1-877-382-4357
- File a complaint with the Internet Crime Complaint Center (IC3) at www.ic3.gov
- Report to your state's consumer protection office or attorney general
- Alert the Better Business Bureau (BBB) at BBB Scam Tracker
- Report marketplace scams to the platform where you found the listing (eBay, Amazon, Facebook, etc.)
- For counterfeit goods, you can report to the manufacturer of the genuine product
For Subscription Traps:
If you've been caught in a subscription trap, take these additional steps:
- Call the company directly to cancel (keep detailed records of the call)
- Send a certified letter requesting cancellation
- Contact your credit card company to decline further charges
- Consider changing your credit card number if cancellation is difficult
Finding Legitimate Shopping Resources
Use these tools and resources to help ensure you're shopping safely:
Website Verification Tools
- WHOIS Lookup: Check how long a website has existed at lookup.icann.org
- ScamAdviser: Check website safety ratings at scamadviser.com
- Google Transparency Report: Search a URL at transparencyreport.google.com
Review Verification
- FakeSpot: Analyzes online reviews for authenticity at fakespot.com
- ReviewMeta: Examines Amazon reviews at reviewmeta.com
- Trustpilot: Independent review platform at trustpilot.com
Reliable Shopping Resources
- Consumer Reports: Independent product testing and reviews at consumerreports.org
- BBB Business Profiles: Check business ratings at bbb.org
- Credit Card Shopping Protections: Learn about your card's fraud protection guarantees
Shopping Directory for Seniors
Need help finding trustworthy online retailers? Here are some well-established options with good customer service and return policies:
- Amazon.com
- Walmart.com
- Target.com
- Costco.com
- CVS.com
- Walgreens.com
- Medicare.gov (for approved providers)
- AARP Member Benefits Marketplace
- SilverSneakers Shop
- ElderStore
Remember: Always go directly to these websites by typing the address in your browser, not by clicking links in emails or ads.
Think You've Been Targeted by a Shopping Scam?
If you've made a purchase you now suspect was fraudulent, or if you need help verifying a website's legitimacy, we're here to help.