Trading standards offices around the country are being given £500,000 to identify internet scams and fraudsters.
One will look at whether the easy access to loans and finance online has had an effect on consumer debt.
In Scotland, officers will investigate dot.com chemists in the UK and abroad that are selling potentially dangerous prescription medicines on the internet.
Consumer confidence
Another project will look at the impact of e-commerce via digital TV services. Six other projects will also share the funding.
The government is keen to make the UK the best place for e-commerce by 2005.
Consumer Minister Melanie Johnson believes that boosting consumer confidence will go a long way to achieving this goal.
"Consumers are often uncertain of their rights and of what to do when transactions go wrong," she said in a statement.
"We are determined to give a better deal for consumers. Trading standards officers all over the UK play a vital role in cracking down on cheats and identifying scams," she added.