₹7,061 Cr lost to online shopping scams in 2023–24 — MeitY Report

Online Shopping Fraud: Fake Sites, Empty Boxes & COD Scams Costing Indians Crores

You found a deal that seemed too good to pass up. You paid. Maybe via UPI, maybe cash on delivery. Then came the wait. And the empty box. Or nothing at all. India's e-commerce fraud problem is massive, growing, and completely preventable — if you know what to look for. This guide covers everything.

₹7,061 CrLost to online fraud (2023–24)
1.1 Lakh+E-commerce complaints (2023)
3xRise in fake sites since 2021
1800-11-4000Consumer Helpline (Free)
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Why This Matters

India's Online Shopping Boom Has a Dark Side

India crossed 300 million online shoppers in 2024. With that growth came an explosion of opportunity — not just for honest businesses, but for an entire ecosystem of fraudsters who have built sophisticated operations specifically targeting Indian consumers.

These aren't just poorly-made scam websites that any savvy person would dismiss. Modern fake e-commerce sites use stolen brand assets, genuine-looking product photos, fabricated customer reviews, and realistic checkout flows. Some even offer COD — cash on delivery — because they know that reduces your suspicion, only to deliver sealed boxes filled with sand or old newspapers.

The scale is staggering. In 2023 alone, over 1.1 lakh e-commerce fraud complaints were filed with India's National Consumer Helpline — and that's only the reported cases. Most victims, embarrassed or unaware of the process, never file a complaint at all.

The Golden Rule

  • Any deal more than 60% off market price from an unknown site is almost always a scam.
  • Sites that accept only UPI/bank transfer (no COD, no card) have zero buyer protection.
  • A professional-looking website is not proof of legitimacy. Scam sites can look perfect.
  • Always pay with credit card where possible — it offers the strongest chargeback protection.
  • Open every package on video while the delivery agent waits — this is your only evidence.
  • Verify any unfamiliar website on RakshaAI before completing your first purchase.
Know the Playbook

7 Types of E-Commerce Fraud in India 2026

Each scam type has a distinct pattern. Knowing them is your first line of defence.

🛒

Fake Shopping Website Fraud

Very High

Scammers create convincing copy-cat stores with real brand logos and fake products. After you pay, nothing arrives or you receive a worthless substitute.

📦

Cash on Delivery (COD) Scam

Very High

You receive an unordered COD parcel with a low amount like ₹99–₹299. Paying confirms your address data for larger scams. The parcel contains junk.

🚫

Counterfeit and Fake Products

High

A third-party seller on Amazon, Flipkart, or Meesho ships a counterfeit version of a branded product. ASPA/CRISIL 2026: 9 in 10 urban Indians bought counterfeit at least once.

💸

Advance Payment Trap

Very High

A seller demands full upfront payment outside the platform — often via UPI or bank transfer. Once you pay, the seller disappears and the order never ships.

📲

Social Media & WhatsApp Shopping Scam

High

Fake seller pages on Instagram and WhatsApp groups offer steep discounts. Products are never delivered or are cheap imitations. AI deepfake shopping scams rose sharply in 2025–26.

👤

Fake Seller on Marketplace Fraud

High

Fraudulent sellers on Amazon India, Flipkart, and Meesho list products, collect payment, then mark the order 'Delivered' without shipping. Victims get a tracking ID for an empty or wrong package.

🚚

Phantom Delivery Scam

High

Your order is marked 'Delivered' before you ever receive it. A fake or empty package follows to beat the refund window. The scammer disappears with your payment.

It Happened to a Real Family

"I Paid ₹4,200 in Cash. The Box Had Sand in It." — A Real Account

Sunita (name changed), a homemaker from Kanpur, saw an Instagram ad for a pressure cooker set — a brand she recognised — for ₹4,200, marked down from ₹8,500. The seller's page had 4.8 stars, dozens of comment photos showing happy customers with the same product. She selected COD because "at least I won't lose money upfront."

The package arrived three days later, well-packaged and sealed with what looked like official courier tape. The delivery agent seemed friendly, collected the cash, handed over the receipt, and left. Sunita brought the box inside, cut it open — and found sand, some crumpled newspapers, and two broken clay pots.

"I called the number on the seller's page. The first time it rang. The second time, invalid number. The Instagram page had vanished. I sat there for twenty minutes just not believing what had happened."

The reviews were fabricated. The 'brand' photos were stolen. The comments were from a paid review farm that posted bulk reviews on multiple fraudulent pages simultaneously. The courier had no idea — the seller had packed and sealed the box themselves.

Sunita filed a complaint with the National Consumer Helpline and cybercrime.gov.in. Her case was registered, but since she paid cash, recovery was extremely difficult. Her story is replicated thousands of times every month across India.

The COD Safety Rule:

Always open your package on video while the delivery agent is still at your door. Ask them to wait 60 seconds. If the contents are wrong, you have a witness and documented proof — and the agent can refuse to leave until you resolve the issue.

How Fake Sites Work

How Are Fake E-Commerce Sites Built So Convincingly?

You might wonder: how can a site look so legitimate and be completely fraudulent? The answer is that building a convincing fake shopping site now costs almost nothing and takes under a day. Scammers use Shopify, WooCommerce, or free website builders, download stolen product images from legitimate retailers, and populate the site with AI-generated or plagiarised product descriptions.

They register domains that mimic popular brands — using numbers instead of letters (amaz0n), adding 'india', 'official', or 'store' to known names, or creating entirely fictional-sounding legitimate businesses. They run Facebook and Google ads with genuine-looking product shots to reach thousands of potential victims.

Many fake sites even have entire return policy pages, 'about us' sections with stock photos of 'team members', GST numbers (often fake or stolen), and customer service email addresses that never respond. The entire objective is to cross the psychological threshold of trust long enough for you to enter your payment details or hand over cash.

Once enough orders accumulate, the site goes dark. The domain is usually abandoned and a new one registered within days. By the time victims start complaining, there is nothing left to trace.

Anatomy of a Fake Site

  • DomainRegistered 4–8 weeks ago, mimics a real brand name
  • SSL CertificateFree HTTPS — proves nothing about legitimacy
  • Product ImagesStolen from Amazon, Flipkart, or brand websites
  • ReviewsBulk-purchased from review farms, all 5-star, no photos
  • Price60–90% below real market price to attract clicks
  • PaymentUPI only, or payment gateway with no buyer protection
  • Lifespan7–90 days before abandoning and relaunching elsewhere

The HTTPS Myth

Many people believe a padlock icon means a site is safe. It doesn't. HTTPS only means the connection is encrypted — not that the site owner is trustworthy. Over 80% of phishing and fake shopping sites now use HTTPS. The padlock is necessary but nowhere near sufficient.

The Fastest-Growing Threat

Instagram & Facebook Shopping Scams: Why They're So Effective

Social media shopping scams deserve their own section because they're fundamentally different from website fraud — and they're growing three times faster. On Instagram and Facebook, a fake seller's page can look almost indistinguishable from a genuine small business, complete with reels, story highlights, and customer testimonial videos (all stolen or staged).

The scam usually works like this: you see an ad for a product — often clothing, skincare, electronics, or jewellery — at a price that's attractive but not obviously suspicious. You click, explore a well-curated page, maybe DM the seller. They respond quickly, professionally, and warmly. They ask you to pay via UPI or bank transfer 'to avoid transaction fees'. Once you pay — silence.

Some sophisticated scammers even deliver the first few orders correctly — building trust, encouraging larger repeat purchases, and getting word-of-mouth referrals — before eventually taking large advance payments and disappearing.

🚩Any seller asking you to DM them to complete a purchase outside the platform
🚩'No refunds after payment' policies buried in captions
🚩Account created recently with suspiciously round follower numbers (5K, 10K, 50K)
🚩All review comments posted within the same 1–2 week period
🚩Prominent 'Verified' badges that are not the actual Meta verification tick
Warning Signs

7 E-Commerce Fraud Warning Signs

Even one of these signs should make you stop and verify before placing any order.

01

A shopping website with no physical address, no working customer care number, and payment only via UPI or bank transfer

02

A price that is 40–70% below the MRP on every other platform — if it seems too good to be true, it is

03

A seller asking you to continue the transaction outside the platform — on WhatsApp, by phone, or via a separate link

04

A COD parcel you did not order arriving at your door — do not pay, do not open, note the courier details

05

An order marked ‘Delivered’ before the promised delivery window, with no physical package received

06

A social media page or WhatsApp group offering brand-name products at clearance prices with no verifiable seller identity

07

A customer care representative asking for your OTP to ‘process a refund’ or ‘verify your order’ — this is always a scam

Know Your Risk

Who Do E-Commerce Scammers Target — And Why?

The honest answer is: everyone. E-commerce fraud doesn't discriminate the way some other scams do. You don't need to be naive or inexperienced to fall for a convincing fake site — you just need to be in a hurry, excited about a deal, or distracted while ordering on your phone.

That said, certain groups are disproportionately targeted. First-time online shoppers — particularly in tier-2 and tier-3 cities — are prime targets because they lack the reference experience to notice inconsistencies. Festival season shoppers are targeted with fake 'Big Billion Day' or 'Great Indian Festival' clone sites that perfectly mimic legitimate platform sales.

Deal hunters who actively search for the cheapest price across platforms are another major target group — scammers specifically appear in Google Shopping results for high-value items like TVs, laptops, and smartphones, knowing that deal-seeking behaviour bypasses normal caution.

First-time shoppers

Lack comparison basis

Festival deal hunters

Excitement overrides caution

Mobile-first users

Small screen hides URL red flags

Social media shoppers

Platform trust transferred to seller

Shop Safely

5 Ways to Verify a Site Before You Buy

Takes less than 3 minutes. Could save you thousands.

01

Check HTTPS and the domain name

Always look for the padlock icon and 'https://' in the URL. Also read the domain carefully — fraudsters use names like 'amaz0n-india.shop' or 'fIipkart.net' that look correct at a glance.

02

Search + 'review' or 'scam'

Type the site name followed by 'reviews', 'scam', or 'complaint' into Google. Victims are quick to post warnings. Even one or two negative results should stop you.

03

Check domain age on WHOIS

Visit who.is or whois.domaintools.com and enter the URL. If the domain is less than 3–6 months old, treat it with extreme caution regardless of how polished the site looks.

04

Call the customer care number before ordering

Call the number listed on the website before you pay anything. If no one answers, it's a generic voicemail, or the number doesn't exist — don't order.

05

Use RakshaAI to verify the website

Paste the store URL into RakshaAI's website checker. It cross-references multiple fraud databases, domain data, and community reports to give you a trust score in seconds.

Myth Busting

Online Shopping Myths vs. Reality

Myth

COD means I'm safe — if it's fake I won't lose anything.

Reality

COD scams are extremely common. Fraudsters deliver sealed boxes filled with sand, bricks, or old clothes. You've paid cash, the agent is gone, and there is no refund mechanism. COD is safer than advance UPI transfer, but not risk-free.

Myth

The site has a secure padlock, so it must be genuine.

Reality

HTTPS only encrypts the connection between your browser and the server. It says nothing about whether the site owner is legitimate. Virtually all fake shopping sites in 2025 have SSL certificates because they're free and automatic.

Myth

A site with thousands of reviews and a 4.8-star rating is trustworthy.

Reality

Review farms in India sell bulk 5-star ratings starting from ₹500 for 100 reviews. Fake reviews are now indistinguishable from real ones without using review analysis tools. Rating count and score alone are meaningless.

Myth

I can always get my money back if I complain quickly.

Reality

Cash COD payments are almost never recovered. UPI payments to fraudulent accounts are recoverable only if reported within hours via 1930. Credit card chargebacks take 30–90 days and are not guaranteed. Prevention is everything.

Recovery Plan

Already Been Scammed? Do This Right Now.

Speed matters. The sooner you act, the better your chances of recovery.

01

Call 1930 (National Cyber Crime Helpline) for Online Payment Fraud

DO FIRST

If you lost money via UPI, net banking, or card payment to a fake shopping site, call 1930 immediately. The CFCFRMS system has helped recover ₹5,489 crore across 17.82 lakh complaints. Provide: your transaction ID, the amount, the website or seller UPI ID, and the time of payment.

02

File a Complaint on the Platform and Escalate to the National Consumer Helpline

DO FIRST

File a formal complaint inside the shopping app: Amazon India dispute centre, Flipkart buyer protection, or Meesho customer care. If the platform does not resolve within 48 hours, escalate to the National Consumer Helpline at 1800-11-4000. The NCH facilitated ₹36.8 crore in e-commerce refunds between April 2025 and January 2026.

03

File on cybercrime.gov.in

Visit cybercrime.gov.in and select 'Report Financial Cyber Crime.' Upload: a screenshot of the fraudulent order or transaction, the seller's ID, any WhatsApp or SMS conversations, and the platform complaint reference number. The case number activates formal investigation protocols.

04

Raise a Chargeback with Your Bank or Card Provider

If you paid by credit or debit card, contact your bank and request a chargeback under the dispute resolution process. Under RBI guidelines, your bank must respond within 48 hours. Ecommerce chargebacks are your strongest recovery tool for card payments. Always raise the platform dispute first before the bank chargeback.

05

File a Complaint with CCPA or Consumer Forum

For non-delivery, counterfeit products, or platform-level violations, file a complaint with the Central Consumer Protection Authority at consumerhelpline.gov.in. The CCPA imposed penalties of ₹10 lakh each on Amazon, Flipkart, Meesho, and Meta in February 2026. District Consumer Forums handle individual claims, particularly for losses above ₹20,000.

Your Safe Shopping Checklist

Run through this before every purchase from an unfamiliar seller

1

Domain is at least 6 months old (checked on WHOIS)

2

Site has a real phone number — I called it and someone answered

3

Price is within 30–40% of market price, not 70–90% off

4

Multiple payment options available, including COD or credit card

5

Reviews span many months with mixed ratings (not all 5-star in one week)

6

I searched the site name + 'scam' or 'complaint' on Google

7

For COD, I will open the package on video before the agent leaves

8

I am paying with a credit card where possible for chargeback protection

9

I verified the URL carefully — no extra letters, numbers, or misspellings

10

I checked the site on RakshaAI's website checker

Frequently Asked Questions

Everything you need to know about online shopping scams in India — answered simply.

Is e-commerce legit and safe to use in India?
Yes, established platforms like Amazon India, Flipkart, Myntra, and Nykaa are legitimate and safe when you purchase directly from verified sellers. The risk comes from third-party sellers on these platforms, from fake shopping websites mimicking real brands, and from social media or WhatsApp sellers with no accountability. Always verify the seller rating, account age, and return policy before purchasing, and check unfamiliar shopping websites on RakshaAI's Website Safety Checker before entering payment details.
What is e-commerce fraud and how does it happen?
E-commerce fraud is any scam that exploits online shopping platforms to steal money or data. It includes fake shopping websites that take payment and disappear, counterfeit products delivered instead of genuine items, phantom deliveries where orders are marked delivered without arriving, COD parcels you never ordered, and advance payment traps where sellers take money outside the platform. In India, 35% of consumers encountered fake products in the past year.
What should I do if I get scammed while shopping online?
Act within 24 hours. Step 1: If you paid via UPI or card, call 1930 immediately. Step 2: Raise a dispute inside the shopping platform — Amazon, Flipkart, or Meesho have buyer protection mechanisms. Step 3: Call the National Consumer Helpline at 1800-11-4000. Step 4: File on cybercrime.gov.in. Step 5: If you paid by card, raise a chargeback with your bank — ecommerce chargebacks are your strongest recovery tool under RBI guidelines.
How do I identify a fake ecommerce website?
Seven checks in 60 seconds: Check the domain age — fake sites are often less than 30 days old. Look for a working customer care phone number. Check if payment methods include only UPI or bank transfer. Search the website name + 'scam' or 'review' on Google. Check for a proper Returns and Refunds policy. Verify HTTPS. Use RakshaAI's Website Safety Checker for an instant fraud database check.
What is the COD fraud scam and how do I handle unordered parcels?
A small parcel arrives at your home for a low amount — usually ₹99 to ₹499 — that you never ordered. Paying confirms your address for future larger scams. If you receive an unordered COD parcel: do not pay the delivery agent, note the sender name, courier company, and tracking ID, reject the parcel, and report to the National Consumer Helpline at 1800-11-4000 and on cybercrime.gov.in.
What is the National Consumer Helpline and how does it help?
The National Consumer Helpline (NCH), reachable at 1800-11-4000 (toll-free, 24/7), is India's official consumer grievance platform under the Department of Consumer Affairs. It directly contacts e-commerce platforms to resolve complaints. Between April 2025 and January 2026, NCH facilitated ₹36.8 crore in e-commerce-related refunds and had 1,185 companies partnered under its Convergence programme, including Amazon, Flipkart, Meesho, and Myntra.
What are dark patterns in ecommerce India and are they illegal?
Dark patterns are manipulative design tactics that trick users into unwanted purchases or decisions. The CCPA issued Dark Patterns Guidelines in 2023, identifying 13 specific practices including drip pricing, bait and switch, confirm shaming, and subscription traps. These are illegal under the Consumer Protection Act 2019. In June 2025, CCPA directed 28 leading platforms to submit compliance declarations. Violations can be reported to consumerhelpline.gov.in.
How do fake sellers on Amazon and Flipkart operate?
Fake sellers build a seller account with legitimate sales to accumulate positive reviews, then switch to counterfeit or non-existent products. They manipulate tracking systems to show 'Delivered' status before a real package is sent. Your best defence is to check seller account age, verify 'Most Recent' reviews, and raise a dispute immediately if an order is wrongly marked delivered.
What is a chargeback and how do I use it for ecommerce fraud?
A chargeback is a formal dispute you raise with your bank or card provider to reverse a fraudulent card transaction. Under RBI's dispute resolution guidelines, your bank must acknowledge a chargeback request within 48 hours. Call your bank's customer care, provide the transaction details, the merchant name, and evidence of non-delivery. Always raise the platform dispute first before the bank chargeback.
Which types of online shopping scams are most common in India in 2026?
Based on ASPA–CRISIL, NCH, and CCPA data for 2025–26: Counterfeit products — 35% of consumers affected. Non-delivery or phantom delivery fraud — 28% of marketplace complaints. Fake shopping websites — 18% of complaints. COD fraud with unordered parcels — highest in Tier-2/3 cities at 10%. Social media and WhatsApp shopping scams — fastest growing, fuelled by AI deepfake product images.
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