$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
dropshipping extreme markup scam
Stores resell cheap items from wholesale marketplaces at extreme markups, often 5-10x the original price, while advertising them as exclusive or premium products.
“online shopping scam”
↑ 184%Key indicators
Usually targetsOnline shoppers
Often hitsSmall business owners
Common regionUnited States
Last updated2026-04-04
Estimated impact
$80
median reported loss
Typical range$16 – $800
Recovery rate~40%
Annual reports370,000
Scam breakdown
1
Scammers set up polished storefronts and run targeted social media ads for trending products
2
Orders are fulfilled directly from overseas wholesale suppliers at a fraction of the listed price
3
Customers receive low-quality items weeks late, with no viable return path
What to do first
Use reverse image search on product photos before purchasing from unfamiliar stores
Related terms
aliexpress reseller scamdropship markup fraudwhite-label product scamOnline shopping scamsFacebookSurgingOnline shoppersImpulse buyersSocial media usersSmall business ownersCreators and online sellersMilitary and veteransUnited StatesUnited KingdomAustraliaaliexpress reseller scamdropship markup fraud
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Jessica, 34, a online shoppers, encountered what appeared to be a legitimate online shopping scams situation while using Facebook. Scammers set up polished storefronts and run targeted social media ads for trending products
Step 2
What happened next was calculated: Orders are fulfilled directly from overseas wholesale suppliers at a fraction of the listed price
Step 3
The pressure escalated quickly: Customers receive low-quality items weeks late, with no viable return path
The outcome
Jessica realized something was wrong when product images can be found on wholesale sites through reverse image search. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Use reverse image search on product photos before purchasing from unfamiliar stores Jessica's experience shows why product images can be found on wholesale sites through reverse image search and shipping takes 3-6 weeks from overseas despite claiming domestic stock are the clearest early warning signs.
How to identify it
- Product images can be found on wholesale sites through reverse image search
- Shipping takes 3-6 weeks from overseas despite claiming domestic stock
- No brand history or verifiable company behind the store
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Use reverse image search on product photos before purchasing from unfamiliar stores
- ✓Check the store's domain age and reviews on independent sites like Trustpilot or Sitejabber
- ✓Dispute the charge with your payment provider if the product quality was misrepresented
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- BBB Scam Tracker reported a sharp increase in complaints about dropshipping-related deception in 2024
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Use reverse image search on product photos before purchasing from unfamiliar stores
- ✓Check the store's domain age and reviews on independent sites like Trustpilot or Sitejabber
- ✓Dispute the charge with your payment provider if the product quality was misrepresented
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
BBB Scam Tracker reported a sharp increase in complaints about dropshipping-related deception in 2024
BBB Scam Tracker 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Online shoppers, Impulse buyers, Social media users
Geographic concentration
United States, United Kingdom, Australia
Primary channel
Facebook — Online shopping scams
Why this group is vulnerable
Online shoppers are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The rapid increase in reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- BBB Scam Tracker reported a sharp increase in complaints about dropshipping-related deception in 2024
Source notes
- BBB Scam Tracker 2025
Frequently asked questions
Common questions about dropshipping extreme markup scam
How does the dropshipping extreme markup scam work?+
Scammers set up polished storefronts and run targeted social media ads for trending products Orders are fulfilled directly from overseas wholesale suppliers at a fraction of the listed price Customers receive low-quality items weeks late, with no viable return path
What are the warning signs of dropshipping extreme markup scam?+
Product images can be found on wholesale sites through reverse image search Shipping takes 3-6 weeks from overseas despite claiming domestic stock No brand history or verifiable company behind the store
What should I do if I encounter dropshipping extreme markup scam?+
Use reverse image search on product photos before purchasing from unfamiliar stores Check the store's domain age and reviews on independent sites like Trustpilot or Sitejabber Dispute the charge with your payment provider if the product quality was misrepresented
Who is most at risk for dropshipping extreme markup scam?+
This scam primarily targets Online shoppers, Impulse buyers, Social media users. It is most commonly reported in United States, United Kingdom, Australia and typically appears on Facebook.
Is dropshipping extreme markup scam getting worse?+
dropshipping extreme markup scam is currently surging — reports are increasing rapidly. It has been reported across US, UK, AU, CA. Last updated 2026-04-04.
Related scams
Similar scams to watch out for
Extension fraud
↑ 131%Malicious browser extension data harvest scam
A seemingly useful browser extension captures browsing activity, credentials, or payment behavior after a short period of benign use.
What to do first
Review permissions before installing.
Targets
Remote workers
Seen in
Global
Smishing
↑ 100%Package redelivery text scam
A delivery text says a parcel cannot be delivered until you confirm address details and pay a small redelivery fee.
What to do first
Open the courier site manually and check tracking there.
Targets
Online shoppers
Seen in
Global
Marketplace fraud
↑ 27%Marketplace rental deposit scam
A fake landlord advertises a good rental deal on a marketplace and pushes for a deposit before any real viewing or lease.
What to do first
Never send a rental deposit before a verified viewing and lease.
Targets
Renters
Seen in
Global
Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.