Understanding Online Shopping Scams Targeting Military Consumers
July is recognized as Military Consumer Month, a time to honor and support the nation’s service members, veterans, and their families. However, this month also brings an increased risk of scams targeting military households. Scammers often take advantage of the unique circumstances that military families face, such as frequent relocations and limited access to traditional shopping options. As a result, online shopping scams have become one of the most common types of fraud reported by military consumers.
According to the BBB Institute for Marketplace Trust, online shopping scams make up nearly half of all scam reports from military families, which is significantly higher than the 30% average seen in non-military consumers. This discrepancy highlights the vulnerability of military households, who may be more reliant on online shopping due to their lifestyle.
How Online Shopping Scams Work
Scammers typically create fake websites or advertisements that mimic legitimate businesses. These sites often feature professional designs, attractive prices, and realistic product images, making it difficult for consumers to distinguish them from real retailers. Once a purchase is made, the consumer may receive a product that is not as described, or they may never receive anything at all.
In some cases, scammers provide fake tracking numbers to give the illusion of a legitimate transaction. The BBB Scam Tracker Risk Report indicates that while younger individuals are more likely to encounter these scams, older adults tend to lose more money when they fall victim. The median loss for military consumers reporting online shopping scams is $120, but losses can be much higher when purchasing expensive items like electronics, furniture, or clothing bundles.
Red Flags to Look For
Identifying potential scams is crucial for protecting yourself and your family. Here are some warning signs that may indicate an online shopping scam:
- Too-good-to-be-true prices – If an item is significantly cheaper than what is available elsewhere, it could be a scam.
- No contact information – Legitimate businesses usually provide a physical address, phone number, or customer service contact.
- No reviews or fake reviews – Scammers often use stolen or AI-generated reviews. Check for independent reviews on third-party sites.
- Requests for unusual payment methods – Be cautious if a seller asks for payment via wire transfer, gift card, or cryptocurrency. These methods are hard to trace and difficult to recover if something goes wrong.
How to Shop Smart Online
Whether you’re buying a gift for a deployed loved one or furnishing a new home after a Permanent Change of Station (PCS), following these tips can help you avoid scams:
- Research the seller – Before making a purchase, check the website or company on BBB.org. Read complaints, ratings, and verified reviews.
- Watch for copycat websites – Scammers often clone popular sites and change the domain slightly. Double-check URLs and avoid clicking on links from social media ads.
- Use a credit card – Credit cards offer better protection against fraud than debit cards or other forms of payment. If there’s a problem, you can dispute the charge.
- Check return and refund policies – Make sure you understand the company’s rules before buying. Scammers rarely have clear or fair policies.
- Keep documentation – Save receipts, order confirmations, and communication with the seller in case you need to report an issue or file a chargeback.
Special Tips for Military Families
Military consumers should take extra steps to stay secure, especially during transitions or deployments:
- Set up fraud alerts or credit monitoring – Active-duty service members can place an Active-Duty Alert on their credit reports, making it harder for identity thieves to open new accounts.
- Use secure internet connections – Avoid making purchases on public Wi-Fi. Use trusted, private networks whenever possible.
- Teach young service members and dependents – Many scams target military spouses and younger enlisted personnel who may be new to managing finances on their own.
What to Do If You’ve Been Scammed
If you’ve lost money or shared personal information with a fake seller, act quickly:
- Report the scam – Submit a report at BBB.org/ScamTracker. Your report helps warn others and supports investigations.
- Contact your credit card issuer – If you used a credit card, dispute the charge.
- Place a fraud alert on your credit report – If personal data was shared, consider placing a fraud alert to protect your financial information.
By staying informed and cautious, military families can shop online with confidence and avoid becoming victims of deceptive practices. Visit BBB.org/AvoidScams to learn more about scam prevention, and check BBB.org before doing business with unfamiliar retailers. Together, we can protect our community and support our service members by shining a light on deceptive practices.