Is Etsy Legit? Key Insights and Common Etsy Scams to Watch Out For

Out of the countless online stores that you can find with the click of a button, Etsy is your one-stop shop for all of your vintage, handmade, and crafting needs.

However, even if the majority of the sellers on the Etsy platform are kind-hearted folks, the Etsy online marketplace isn't immune to scammers and their Etsy scams. If you want to avoid getting scammed on Etsy, you've come across the right place!

From fake Etsy shops to bait and switch scams and beyond, in this Mysterium VPN blog post, we'll walk you through the most common Etsy scams and how to keep your personal or financial information safe from online scams.

Is Etsy Safe?

Etsy is a legitimate online marketplace based in the U.S.A. Etsy places its emphasis on selling handmade or vintage items and crafts supplies.

These items fall under a wide range of categories, including jewelry, bags, clothing, home decor, religious items, furniture, toys, art, as well as craft supplies and tools. Established in 2006 by Josh Silverman in Brooklyn, New York, the Etsy website brought in a revenue of 2.75 billion dollars.

The business also has a few subsidiaries, including Depop (a social e-commerce company based in London) and Reverb (an online marketplace for new, used, and vintage musical equipment).

As of February 27, 2025, Etsy, Inc. has a market value of approximately 5.48 billion dollars. This valuation reflects a significant decrease of about 41% over the past year.

The Various Security Measures of Etsy

Here’s an overview of Etsy’s key security measures and how to use them effectively.

Two-factor authentication (2FA)

Two-factor authentication (2FA) adds an extra layer of security by requiring a verification code in addition to your password when signing in from an unrecognized device.

1. Go to You > Account Settings > Security;
2. Select Enable Two-Factor Authentication;
3. Choose a method (SMS or authenticator app);
4. Enter the verification code sent to your device and confirm.

Even if someone steals your password, they won’t be able to log in without the unique code, making it much harder for unauthorized users to access your account.

Sign-In Notifications

Sign-in notifications alert you via email whenever someone logs into your account from a new or unrecognized device.

1. Navigate to Account Settings > Security;
2. Turn on Sign-In Notifications.

If you receive a notification for a login you don’t recognize, it may indicate unauthorized access. You should immediately change your password and review your account security settings.

Sign-In History Monitoring

Etsy keeps a record of recent login attempts and the devices used to access your account.

1. Go to Account Settings > Security;
2. Review the list of recent logins and associated devices.

Monitoring sign-in history helps you detect any unauthorized access and take action if needed.

Secure Payment System (Etsy Payments)

Etsy Payments ensures that all transactions are securely processed within the platform. Supported payment methods include:

• Credit and debit cards;
• PayPal;
• Apple Pay and Google Pay;
• Etsy gift cards.

Using Etsy’s payment system protects buyers from fraud and unauthorized transactions. If a seller requests payment outside of Etsy, this is a red flag and should be reported.

Purchase Protection Program

Etsy offers a Purchase Protection Program that provides refunds for orders that never arrive, arrive damaged, or do not match the listing description.

• If an order meets Etsy’s eligibility criteria, the buyer may receive a refund if the seller does not resolve the issue;
• Buyers can open a case if an item does not arrive within the expected delivery time.

This feature helps ensure that buyers are protected when making purchases on Etsy.

Fraud Detection & Account Lockout System

Etsy has automated systems that detect suspicious activity, such as multiple failed login attempts or unauthorized changes to payment details.

• If Etsy detects unusual activity, it may temporarily lock the account to prevent unauthorized access;
• Users receive an email with instructions on how to regain access.

These security measures help prevent account takeovers and protect sensitive financial information.

Phishing & Scam Protection

Etsy actively monitors for phishing scams and impersonation attempts to protect users from fraud.

• Ensure Etsy emails come from @etsy.com;
• Avoid clicking on suspicious links in emails that claim to be from Etsy;
• Report fraudulent messages or scam listings using the Report this item or Report this message options.

Privacy & Data Protection Controls

Etsy provides privacy settings that allow users to control how much personal information is shared.

1. Go to Account Settings > Privacy;
2. Adjust visibility settings for purchase history and profile details;
3. Manage cookie preferences for personalized ads.

These settings help protect your personal information from unwanted exposure or tracking.

Common Etsy Scams and How They Work

Here are the most common online threats that Etsy users may face when shopping online.

Fake Etsy Shop Scams

Fake Etsy shops often list cheaper listings to tempt buyers, using stolen images from legitimate sellers. These scammers take payments but never deliver the products. Here's how to spot a fake Etsy shop:

• The Etsy shop has no or very few previous buyers;
• Negative reviews complaining about undelivered orders;
• Product descriptions are vague or copied from another Etsy seller;
• The shop has multiple identical listings of the same product.

Here's how to stay safe:

• Perform a reverse image search to check if product photos are stolen from other platforms;
• Verify the seller’s sales history and customer feedback;
• Stick to Etsy’s secure payment platform instead of using payment apps outside of Etsy.

Bait and Switch Scams

Bait and switch is a common scam where the Etsy seller advertises a high-quality product but delivers a lower-quality item. Below are warning signs of scams:

• The item received is different from the listed photos;
• The fine print in the description states that buyers may receive a “similar” item;
• The seller refuses to issue refunds despite the refund process under Etsy’s policies.

Here's how to stay safe:

• Read the product descriptions carefully, especially the fine print;
• Check previous buyers’ reviews for authenticity;
• Use Etsy’s purchase protection program to request a refund if necessary.

Non-Delivery and Fake Tracking Number Scams

Some fake Etsy shops take payments and provide fake tracking numbers to avoid detection. Etsy scammers may delay responses until the refund process window closes. Here's how to spot this scam:

• The shipping confirmation email contains tracking details that never update;
• The Etsy seller stops responding after payment;
• Shipping times seem unrealistically short or too long.

How to stay safe from this scam:

• Only pay through Etsy payments to be eligible for Etsy’s purchase protection program;
• Verify the tracking number with the shipping carrier;
• If the item doesn’t arrive, contact Etsy support immediately.

Wrong Address Scams

Scammers manipulate the shipping address to claim the order was delivered but to the wrong address. Some fraudsters use stolen credit card details to order expensive products and reroute them. Here's how to spot this scam:

• The wrong address appears on your order confirmation;
• Tracking says “delivered,” but you never received the package;
• The seller suggests they can’t be responsible for lost items.

How to stay safe:

• Double-check the shipping address before finalizing a purchase;
• If the order is marked delivered but you never received it, check with your credit card company;
• File a claim through Etsy’s purchase protection program.

Phishing and Malicious Website Scams

Some scammers impersonate Etsy and send emails asking users to reset their Etsy password on a malicious website. These scams aim to steal financial accounts or personal or financial information. How to spot this scam:

• Emails that claim your Etsy account is compromised but contain suspicious links;
• The email sender isn’t from @etsy.com;
• You are redirected to an external website to log in.

How to stay safe:

• Always log in through the Etsy website, not email links;
• Change your Etsy password regularly;
• Enable two-factor authentication for extra online security.

Fake Review and Feedback Scams

Some fake shops manipulate ratings using fake reviews to appear as legitimate sellers. How to spot this scam:

• A seller has thousands of five-star reviews but little engagement from previous buyers;
• Many reviews are generic or repeated;
• The same product appears in multiple shops with identical descriptions.

How to stay safe:

• Look for detailed reviews with customer-uploaded images;
• Avoid shops with only recent reviews and no long-term reputation.

How Individual Sellers Can Stay Safe

While Etsy's team safeguards the platform, you, as an Etsy seller, can enhance your shop's security by implementing the following measures.

Understand Potential Threats

Account takeovers occur when unauthorized individuals gain access to accounts, often through guessed passwords or credentials obtained from other compromised sites.

Implementing basic security practices can help prevent such incidents.

Enhance Your Security Settings

Utilize Etsy's security features by navigating to You > Account Settings > Security. Here, you can enable:

• Two-factor authentication: Requires a code sent to your phone upon signing in from a new browser or device (and every 30 days), adding an extra layer of security.
• Sign-in notifications: Sends email alerts for login attempts from unrecognized devices.
• Sign-in history: Allows you to monitor all account login activities.

Activating these features strengthens your shop's security and provides oversight of account access.

Choose Strong, Unique Passwords

A robust password is crucial for account security. Avoid simple passwords like "123456" or "password," as they are easily compromised.

Instead, create long, unique passphrases combining random words that are both memorable and difficult to guess. Ensure each online account has a distinct password to prevent a breach on one site from affecting others.

Utilize Password Managers

Managing multiple complex passwords can be pretty uncomplicated with password managers like 1Password, KeePassX, or Dashlane.

These tools generate and store unique passwords for each site, requiring you to remember only one master passphrase. Some options are free, while others offer advanced features for a fee.

Secure Your Mobile Devices

Since mobile devices are integral to account security, keep your phone's software updated, use a lock screen, and consider apps like Find My iPhone or Android Device Manager to track your device.

Always sign out of your Etsy account when accessing it from public computers.

Maintain Updated Systems

Regularly update your operating system and browser to protect against security vulnerabilities. Periodically changing your passwords further enhances security, a task made easier with password managers.

By adopting these straightforward steps, you can significantly bolster your online security. If you suspect unauthorized access to your Etsy account, promptly contact Support for assistance.

How Etsy Users Can Stay Safe

Shopping on Etsy can be an enjoyable and secure experience, but as with any online marketplace, it’s important to take precautions to protect yourself.

Here are some key tips to help you stay safe while shopping on Etsy.

Verify Seller Credibility

Before making a purchase, you must check the seller’s reviews, ratings, and sales history. A reputable seller typically has positive feedback and detailed product descriptions. Look for:

• High ratings and positive customer reviews.
• A well-established shop with multiple sales.
• Clear and professional product photos.

Use a VPN

Using a VPN when shopping online is place common sense. Whenever you're shopping online, a VPN will help you stay safe and secure from online threats. Here's how it's done:

• Protects personal or financial information: A VPN encrypts your data, preventing hackers and malicious websites from stealing your credit card details, passwords, and other personal or financial information.
• Shields against online threats and scams: Using a VPN hides your IP address, making it harder for malicious websites, phishing scams, and fake Etsy shop scams to track or target you.
• Accesses better deals and avoids price discrimination: Some online marketplaces adjust prices based on location. A VPN allows you to change your virtual location to find cheaper listings and exclusive regional discounts.

Conduct a Reverse Image Search

To ensure a seller is authentic, perform a reverse image search on the product photos. Some fraudulent sellers steal images from other websites. You can do this by:

• Right-clicking on the image and selecting “Search Image with Google” (on Chrome).
• Using Google Lens or TinEye to check if the image appears on other sites.
• Comparing the seller’s product photos with listings on other marketplaces.

If the same product appears on multiple websites under different seller names, it could be a red flag.

Communicate Securely Through Etsy

Always use Etsy’s built-in messaging system to communicate with sellers. Avoid sharing personal information like your phone number or email, as this can put your data at risk.

Use Secure Payment Methods

Etsy offers secure payment options, including Etsy Payments, which supports credit cards, PayPal, Apple Pay, and Google Pay.

Beware of sellers who insist on making transactions outside of Etsy's secure payment platform by asking for Venmo, cryptocurrency, or direct bank transfers.

Be Cautious of Deals That Seem Too Good to Be True

If an item is priced significantly lower than similar products, it may be a scam. Trust your instincts—if a deal seems suspicious, research the seller and product further before purchasing.

Protect Your Account with Strong Security Measures

• Enable two-factor authentication (2FA) in your Etsy security settings.
• Use a unique and strong password for your account.
• Monitor your sign-in history for any unusual activity.

Watch Out for Phishing Scams

Phishing attempts can come in the form of emails or messages pretending to be from Etsy. Stay safe by:

• Checking the sender's email address. Etsy’s official emails end at @etsy.com.
• Avoid links in suspicious emails; log in directly to Etsy instead.
• Never providing login credentials or payment information outside of Etsy’s platform.

Keep an Eye on Your Orders

Use Etsy’s order tracking features to monitor your purchases. If an item doesn’t arrive within the estimated timeframe, contact the seller. If there’s no resolution, Etsy’s Purchase Protection Program may help.

Report Suspicious Activity

If you come across a fraudulent listing, a scammy vintage seller, or a scam message, report it to Etsy immediately. Etsy’s Trust & Safety team works to remove bad actors and keep the marketplace secure.

Also, if you end up falling victim to a scam, be sure to report it to the Federal Trade Commission (FTC).

What to Do If You Get Scammed on Etsy

Speaking of reporting scams and other online threats. Here's what you should do if you get scammed on Etsy.

Report the Seller to Etsy Immediately

• Visit the Etsy website and report the Etsy seller;
• Provide evidence, such as messages, receipts, and tracking numbers.

Contact Etsy Support

• Open a case with Etsy support if the seller is unresponsive;
• Use the refund process through Etsy’s purchase protection program.

Check Your Credit Card Statements

• If you paid with a major credit card, contact your credit card company for a chargeback;
• Report suspicious activity on your financial accounts.

Watch Out for Other Online Threats

• If you suspect a malicious website scam, run antivirus software;
• Update your online security settings and passwords.

Final Thoughts: Is Etsy Legit?

While Etsy is a legitimate online marketplace, it is not immune to scams and fraudulent sellers.

By understanding common Etsy scams, using Etsy’s secure payment platform, and implementing various security measures, you can greatly reduce the risk of falling victim to online threats.

Whether you’re a buyer or an Etsy seller, staying informed and vigilant is the key to keeping your Etsy account and personal or financial information safe.

If you encounter any suspicious activity, report it to Etsy support immediately to help maintain a secure shopping environment for all Etsy users.

‍