9 ways to spot and avoid online shopping scams this holiday season

Introduction

The holiday season means more shopping, more deals, and unfortunately, more scams. According to new data from the Federal Trade Commission, consumers reported losing $12.5 billion to fraud in 2024 — a significant jump from previous years. Scammers know this is the time of year when people are busy, distracted, and hunting for bargains. The good news: most scams follow predictable patterns, and once you know them, they’re easier to avoid.

This article covers the most common holiday scams, red flags to look for, practical shopping habits, and what to do if you think you’ve been scammed. The advice draws on FTC consumer warnings and recent fraud reports.

What happened

In March 2025, the FTC released updated fraud data for 2024. The headline: Americans lost $12.5 billion to fraud, a sharp increase from the $10 billion reported in 2023. While this number includes all types of fraud, online shopping scams are a major driver. The FTC also noted that imposter scams and online shopping complaints were among the top categories.

During the holiday season, scams tend to spike. Fake websites go up, phishing emails impersonating delivery companies circulate, and social media ads push counterfeit goods at too-good-to-be-true prices. The FTC’s Consumer Advice page specifically warns about lookalike websites, fake shipping notifications, and requests for payment via gift cards or wire transfers.

Why it matters

For anyone doing holiday shopping online, the stakes are high. Beyond the direct financial loss, getting scammed can mean stolen credit card numbers, compromised personal information, and hours of frustration trying to recover money. Older adults and less tech-savvy users are especially vulnerable, but anyone can be caught off guard in the rush of holiday deals.

The sheer scale of fraud losses — $12.5 billion — shows that scammers are becoming more sophisticated. But most of these scams work because they exploit human behaviors: urgency, trust in familiar brand names, and a desire to save money. With some awareness, you can drastically reduce your risk.

What readers can do

Here are the most effective strategies, based on FTC guidance and common sense.

1. Verify the website before buying

Scammers create fake store websites that look nearly identical to legitimate retailers. Check the URL carefully: look for misspellings (e.g., “amazn.com” instead of “amazon.com”), odd domain endings, or extra words. If you’re unsure, navigate to the site directly by typing the URL yourself rather than clicking a link from an email or ad.

2. Use a credit card for online purchases

Credit cards offer the best fraud protection under federal law. You can dispute charges and generally get your money back. Debit cards, wire transfers, peer-to-peer payment apps (like Venmo or Zelle), and gift cards are far less protected. If a seller insists on payment via gift card or wire transfer, that’s a major red flag.

3. Be wary of too-good-to-be-true deals

If a price is drastically lower than anywhere else, question it. Scammers lure shoppers with unbelievably low prices on popular items (e.g., the latest video game console, designer handbags, or electronics). Compare prices across multiple reputable sites. If it sounds too good to be true, it probably is.

4. Watch for phishing emails and fake shipping notifications

During the holidays, you’ll get more shipment tracking emails. Scammers send fake ones that look like they’re from UPS, FedEx, or USPS, often with a link to “reschedule delivery” or “track package.” That link may lead to a site that steals your login or personal data. If you get an unexpected shipping notification, go directly to the carrier’s official website and enter the tracking number there — don’t click the link.

5. Look for seller reviews and contact information

If you’re buying from a seller you don’t know, read reviews — but with caution. Scammers can post fake positive reviews. Look for reviews that mention specific product details, and check independent review sites. Also, see if the seller lists a physical address and a phone number. If you can’t find any way to contact them, it’s risky.

6. Enable two-factor authentication on shopping accounts

Where possible, turn on two-factor authentication (2FA) for your email and shopping accounts. This adds an extra layer of protection. Even if a scammer gets your password, they can’t access your account without the second factor (like a code sent to your phone).

7. Avoid shopping on public Wi-Fi

Public Wi-Fi networks (at coffee shops, airports, hotels) are not secure. Scammers can intercept data you send, including credit card numbers. If you must shop while out, use your phone’s cellular data or a VPN.

8. Keep your software and devices updated

Scammers exploit known vulnerabilities in outdated browsers, operating systems, or apps. Install updates regularly. This is a simple but effective way to block some attacks.

9. If you get scammed, act quickly

Here’s what to do:

  • Contact your bank or credit card company immediately to report unauthorized charges and request a chargeback.
  • Change passwords for any accounts you think may be compromised — especially email and shopping accounts.
  • Report the scam to the FTC at ReportFraud.ftc.gov. This helps track scams and may assist with recovery.
  • If you paid via gift card, contact the gift card company (e.g., Amazon, iTunes) and ask if they can freeze the funds. Often, they can’t, but it’s worth trying.
  • Monitor your credit report for any new accounts opened in your name. You can get a free report at AnnualCreditReport.com.

Sources

  • Federal Trade Commission, “How to avoid an online shopping scam this holiday season,” Consumer Advice, November 2025. Link
  • Federal Trade Commission, “New FTC Data Show a Big Jump in Reported Losses to Fraud to $12.5 Billion in 2024,” March 2025. Link
  • Federal Trade Commission, “Don’t let scammers get in the way of your holiday shopping,” November 2024. Link