Which States Have the Most Online Shopping Fraud? Protect Yourself in 2025

Rosa Matthews
Apr 7
4 min read

In the booming world of e-commerce, a concerning trend has emerged alongside convenience: online shopping fraud. With Americans reporting over $12.5 billion in fraud losses in 2024 alone—a staggering 25% increase from the previous year—understanding your risk has never been more important.

The Geography of Online Shopping Fraud

Where you live might affect your likelihood of encountering online shopping scams. According to recent analyses of FTC data:

Washington D.C., Delaware, and New Hampshire reported the highest rates of online shopping fraud per 100,000 residents (2020-2022 data)
East Coast states generally show higher concentrations of these scams
South Dakota and North Dakota consistently report the lowest rates

Interestingly, during peak holiday shopping seasons (Q4 to Q1), most states see a significant uptick in reported cases, suggesting scammers target consumers during their most vulnerable shopping periods.

Top 10 States Reporting Fraud

While specific rankings for online shopping fraud alone may fluctuate, recent comprehensive data analysis reveals these states consistently rank among the highest for overall fraud reports per capita:

Georgia - Leading the nation with approximately 1,572 fraud reports per 100,000 residents, Georgia shows particular vulnerability to online shopping scams and identity theft.
Florida - With about 1,317 reports per 100,000 residents, Florida ranks second, with older populations being particularly targeted by sophisticated online retail scams.
Nevada - At 1,270 reports per 100,000 people, Nevada's tourism-heavy economy creates opportunities for scammers to target both residents and visitors through fraudulent travel and shopping offers.
Delaware - Despite its small size, Delaware reports approximately 1,263 fraud cases per 100,000 residents, with online shopping fraud featuring prominently.
Maryland - With 1,162 reports per 100,000 people, Maryland's proximity to Washington D.C. and high internet usage rates contribute to its vulnerability.
California - The largest state economy reports about 1,155 fraud cases per 100,000 residents, with total financial losses exceeding any other state due to its population size.
Arizona - At 1,144 reports per 100,000 people, Arizona's large retirement communities are frequently targeted by online shopping scams.
Texas - Reporting approximately 1,112 fraud cases per 100,000 residents, Texas sees diverse fraud patterns across its large urban and rural areas.
Colorado - With 1,087 reports per 100,000 people, Colorado's tech-savvy population paradoxically becomes a target for sophisticated online fraud schemes.
New Jersey - Rounding out the top ten with 1,076 reports per 100,000 residents, New Jersey's dense population and proximity to major commerce hubs create fertile ground for online scammers.

A 2023 Forbes Advisor analysis further confirms these findings, noting that while these states lead in overall fraud reports, each shows different patterns in the types of scams residents encounter most frequently.

Why This Matters Now

Online shopping fraud isn't just another statistic—it ranked as the second most commonly reported fraud category to the FTC in both 2023 and 2024. These scams alone resulted in reported losses of $432 million in 2024.

What's particularly alarming is that scammers are becoming increasingly sophisticated:

Using AI to create deepfakes and clone voices
Creating convincing fake retail websites
Exploiting newer payment systems like Buy Now Pay Later
Expanding to social media platforms with fake customer service accounts

State Differences: Why Location Matters

Geographic patterns in online shopping fraud aren't random. Several factors might explain why certain states report higher rates:

Economic Factors: States with higher median incomes often report more fraud cases, possibly due to greater online shopping activity or higher-value targets for scammers.
Demographic Patterns: Areas with higher concentrations of retirees (like Florida and Arizona) might see more scams targeting older demographics, who may be less familiar with emerging digital threats.
Industry Concentration: States with significant tech industries (California, Washington) may present larger digital landscapes for exploitation, with consumers more frequently engaging in online transactions.
Digital Access: Rural states with limited broadband access and fewer online shoppers (like South Dakota) typically report fewer cases of online shopping fraud.
Consumer Education: Variations in consumer education and awareness about cybersecurity practices may influence reporting rates across different regions.

Red Flags: How to Spot Online Shopping Scams

Protecting yourself starts with recognizing these common warning signs:

Prices too good to be true: Drastically reduced prices on popular items
Pressure tactics: Pushing for immediate purchase decisions
Unusual payment requests: Asking for gift cards, wire transfers, or cryptocurrency
Missing contact information: No clear physical address or contact details
Poor website quality: Spelling errors, broken functionality, or amateur design
Suspicious URLs: Slight variations of legitimate retailer domains
Unsecured connections: Missing "https" or padlock icon in browser address bar
Excessive information requests: Asking for more personal data than necessary for purchase

7 Ways to Shop Safely Online in 2025

Follow these expert-recommended strategies to minimize your risk:

Research unfamiliar retailers before purchasing. Check their Better Business Bureau rating and search for independent reviews.
Use credit cards instead of debit cards for online purchases. Credit cards offer stronger fraud protections with limited liability for unauthorized charges.
Avoid public Wi-Fi for shopping unless using a VPN. Unsecured networks make your payment information vulnerable to interception.
Enable multi-factor authentication (MFA) on all shopping accounts to add an additional security layer.
Verify communication directly with retailers. Don't click links in unsolicited emails or texts claiming order issues—instead, visit the official website directly or call their published customer service number.
Monitor your financial statements regularly for unauthorized charges.
Report suspected fraud immediately to the FTC's Fraud Reporting site and your financial institutions.

Taking Action After Fraud

If you believe you've been victimized:

Contact your financial institution immediately to dispute charges
Report the incident to the FTC at ReportFraud.ftc.gov
For identity theft concerns, visit IdentityTheft.gov for customized recovery steps
Report the fraudulent website or seller to the platform where you found them

The Bottom Line

As e-commerce continues to dominate retail, staying vigilant against online shopping fraud becomes increasingly important. While certain states show higher reported rates, consumers everywhere need to practice safe shopping habits.

By recognizing warning signs and implementing these protective measures, you can significantly reduce your risk of becoming another statistic in the growing problem of online shopping fraud. Remember: when an offer seems too good to be true, it usually is.