90% Off Festive Sale Isn’t a Deal, It’s a Trap: Online Shopping Scams You Must Know

You spot a branded phone at 70% off, you pay via UPI and the product never arrives. Indians face an average of 12 scam attempts a day and online shopping scams have become a significant issue in India, where the convenience of UPI payments, cash on delivery (COD) options, deep discounts and the urgency of festive shopping create a perfect environment for fraud. As shoppers rush to take advantage of unbelievable deals, they often overlook crucial details that could signal a scam.

In this blog, you will learn about common online shopping scams, identify red flags and discover what to do if you fall victim to these schemes.

What Are Online Shopping Scams And Why India Is a Hotspot?

Online shopping fraud refers to deceptive practices where consumers pay for goods that either never arrive, are counterfeit, or serve as a pretext for stealing money, personal data, or OTPs. India has become a prime target for such scams due to several factors:

• A large base of first-time online buyers.

• The convenience of UPI payments.

• Heavy spending driven by festivals.

• The prevalence of social media and WhatsApp-based selling.

According to the National Cyber Crime Reporting Portal, there was a 50% increase in online shopping fraud cases reported in 2022 compared to previous years, highlighting the growing threat.

Fake Shopping Websites: The Most Common Trap

Fake shopping websites often use look-alike domains that mimic established brands, create ads on social media and Google that lead to clone sites, and display stolen product images with extremely low prices.

Red flags to spot a fake website

   Be vigilant for these warning signs:

·       Misspelled or odd domain names (extra words, “.shop”, “.xyz”).

·       Absence of an HTTPS padlock (note that a padlock alone doesn’t guarantee safety).

·       Lack of real contact details, GST numbers, or return policies.

·       Payment options limited to direct UPI or bank transfers, with no card or COD option.

·       Recently registered domains (check with a WHOIS lookup).

Fake Festive Sale Offers: When Discounts Turn Dangerous

As per McAfee reports, 1 in 3 Indian consumers fell victim to holiday-related scams and 37% of those lost money. So, this raises a question, why scammers love Diwali, Dussehra and big-sale seasons? Scammers thrive during festive seasons, using urgency tactics like “Only 2 left!” and countdown timers, leading to increased festive season cyber fraud.

Verified data suggests 91% of people receives suspicious shopping messages consist of fake gift card wins (49%), limited-time offers (40%), refund notifications (27%). The heightened shopping activity presents an opportune moment for fraudsters to exploit the excitement and urgency felt by consumers. A discount above ~70% on premium brands is a significant warning sign. Always compare prices across multiple platforms and verify the authenticity of the seller before making a purchase.

Examples of fake festive sale offers

·       WhatsApp forwards promising “free gifts” or “Diwali coupons.”

·       Fake “Big Billion Days” or “Great Indian Festival” lookalike links.

·       Phishing SMS about “festive cashback” or “KYC expiry.”

·       Lookalike advertisements on social media platforms that redirect to fraudulent sites.

The Fake Delivery OTP Scam Explained: How Scam Works, Step-by-Step

1.   You receive a call or SMS stating that a parcel is stuck, the address is incomplete or a    delivery fee is due.

T      he Fake Delivery OTP Scam Explained: How Scam Works, Step-by-Step

2.       You’re asked to share an OTP or click a link to “reschedule.”

3.       The link or OTP is then used to access your account, UPI or card.

How it differs from a genuine delivery OTP

Genuine delivery OTPs are tied to an order you actually placed and are shared only with the delivery agent at your door. Never share an OTP with someone over a call or message for an order you didn’t place. Scammers often disguise themselves as delivery personnel to create a sense of urgency.

Other Online Shopping Fraud to Watch For

Metrics about E-commerce complaints at the National Consumer Helpline conveys that nearly 40,000 of 67,265 refund-related complaints and ₹32 crore of the ₹45 crore refunded across 31 sectors in 2025.

·       Fake customer care numbers from search results.

·       Social media and Instagram sellers who disappear after payment.

·       Counterfeit goods or “refurbished items passed off as new.”

·       Fake refund calls asking you to scan a QR code or approve a collect request.

·       Remember, you never need to enter a UPI PIN to receive money.

·       Fake reviews and manipulated ratings that mislead potential buyers.

How to Identify and Avoid Online Shopping Scams in India

1.    Shop only on verified apps or official websites. Type the URL yourself or use official app stores to avoid redirection to fake sites.

     Check the domain, seller ratings, and return policy of the website. Established retailers typically have clear return policies and customer service options.

3.      Prefer secure payment methods (credit card, trusted gateway, COD for unknown sellers) over direct bank or UPI transfers. Credit cards often offer better consumer protection.

4.   Never share OTPs, PINs, CVV, or passwords. No genuine company will ask for them through phone calls or messages.

5.      Be wary of unrealistic discounts. If a deal seems too good to be true, it likely is.

6.     Don’t click links in unsolicited SMS, WhatsApp, or email. Go to the official app directly to check offers.

7. Find customer care numbers only on the official website or app. Avoid numbers shared through social media or unsolicited messages.

8. Enable transaction alerts and set UPI and card limits to monitor your spending and detect fraud early.

9. Keep screenshots of orders, chats, and payment receipts for future reference in case of disputes.

What to Do If You’ve Been Scammed

If you suspect you’ve been a victim of online shopping fraud, take these steps promptly:

1.       Verify every contact detail before publishing any information about the scam.

2.       Call 1930 (National Cyber Crime Helpline) as quickly as possible. Acting fast improves the chance of freezing the transaction and recovering your funds.

3.File a complaint at cybercrime.gov.in. Provide as much detail as possible to aid in the investigation.

4.  Inform your bank or card issuer immediately to block the card or UPI. Quick action can prevent further unauthorized transactions.

5.     Report the issue to the platform or seller from whom you made the purchase. They may have protocols in place to assist victims.

6.     Consumer complaints can go through the National Consumer Helpline (1915) or the e-Daakhil portal. The Consumer Protection (E-Commerce) Rules, 2020 apply to e-commerce entities, giving consumers rights in these scenarios.

7.     File an FIR if needed for official documentation and assistance in recovering your losses.

Quick Festive Season Safety Checklist

• Bookmark official apps before the sale starts to avoid confusion during peak shopping hours.

•        Set a spending limit to manage your finances and avoid impulse purchases.

•      Use a separate card or UPI account for online shopping to limit exposure in case of fraud.

•        Verify an offer on the brand’s own site before buying to ensure its legitimacy.

•        Warn elderly family members about delivery OTP calls and other common scams.

Also, Technology isn't just a tool for deceitful sellers; it’s also your strongest ally when purchasing online. Automated security systems and real-time monitoring software work behind the scenes to help protect everyday consumers from financial loss. By utilizing smart tools and national safety programmes, you can navigate digital stores with confidence.

Browser extensions and mobile security applications provide instant feedback on whether a storefront is safe. Popular web tools scan links before you click, flagging suspicious URLs designed to mimic reputable retailers. These tools automatically check domain age, user ratings and web encryption, helping you avoid dubious sites before you enter any payment information.

Mobile security apps also offer protection by scanning text messages for malicious links. These applications can identify attempts at a Fake Delivery OTP Scam, alerting you before opening harmful URLs. Keeping your phone's operating system updated ensures these security features effectively detect new threats.

In India, public initiatives offer direct support to protect citizens from online shopping scams. The Ministry of Home Affairs operates the National Cyber Crime Reporting Portal along with the 1930 helpline for quick reporting. Public awareness campaigns, such as Amazon India's Mission GraHAQ initiative, provide clear guidance on recognizing bad actors and avoiding financial loss.

final thoughts

As the festive season approaches, it’s crucial to stay alert and verify every detail before making online purchases. Remember, online shopping scams are prevalent, and sharing OTPs can lead to significant financial loss. By following the guidelines provided, you can enjoy a safer shopping experience and protect your hard-earned money.