Avoiding Mail-Order Scams: A Consumer Checklist
Mail-order fraud is as old as the catalog itself. Most legitimate catalog companies are trustworthy, but knowing the warning signs of a bad actor will protect you from the minority that are not.
The distance between buyer and seller that defines mail-order shopping is also what makes it a fertile environment for fraud. When you cannot visit a store, inspect goods before paying, or easily confront a seller who disappoints you, bad actors have more room to operate. The good news is that the warning signs of a fraudulent mail-order operation are well established and consistent.
Common mail-order fraud schemes
Goods never delivered. The oldest scheme: you pay, nothing arrives. The company may be genuinely non-existent, or it may have taken orders without the inventory to fill them. In either case, you are left chasing a refund that is difficult to collect.
Substitution fraud. You order a specific item and receive something cheaper, inferior, or completely different. The company either intends to deceive from the start or has run out of stock and substituted without notice.
Negative option traps. You order a discounted “introductory offer” and are automatically enrolled in a recurring subscription or club that bills you monthly. The enrollment terms are buried in fine print or disclosed only after payment. This is one of the most common modern mail-order complaints.
Prize and sweepstakes schemes. A direct-mail piece tells you that you have won a prize, but collecting it requires purchasing something or paying a fee. The prize is invariably worthless or non-existent.
Overseas order fraud. Orders placed with foreign companies have limited US legal protection. If goods do not arrive from a foreign seller, your recourse is significantly more limited than with a domestic company.
Red flags to watch for
- No physical mailing address for the company — only a P.O. box or no address at all
- No working customer service phone number
- Payment requested only by check, money order, wire transfer, or gift card
- Prices dramatically below market rate for the product
- No clear returns policy stated before purchase
- Vague or absent company history
- Unusual urgency: “this offer expires in 24 hours” or “very limited stock” with no basis
- Subscription terms disclosed only in small print after the initial offer
The pre-order checklist
Before placing an order with any mail-order company you have not used before, run through these steps:
- Look up the company name plus “complaints,” “reviews,” and “BBB” (Better Business Bureau). Check the FTC’s consumer information pages and your state attorney general’s complaint database if available.
- Confirm a physical street address exists and is verifiable.
- Find and read the returns policy before ordering. If there is none, reconsider.
- Read all fine print for subscriptions, memberships, or recurring charges.
- Pay by credit card rather than check, money order, or debit card. Credit cards offer chargeback protection that other payment methods do not.
If something goes wrong
If goods do not arrive within the promised timeframe, contact the seller in writing (email provides a record). If no satisfactory response comes within a reasonable period, file a chargeback through your credit card issuer, file a complaint with the FTC at ReportFraud.ftc.gov, and consider filing with your state attorney general. For postal fraud specifically, the US Postal Inspection Service handles mail fraud complaints and has significant enforcement authority.