How to Avoid an Online Shopping Scam This Holiday Season – Advice from the FTC

The holiday shopping season is a busy time for both buyers and scammers. According to the Federal Trade Commission (FTC), Americans reported losing $12.5 billion to fraud in 2024 alone – a sharp increase from $10 billion the year before. Online shopping scams were among the top categories, and the tactics scammers use are becoming harder to spot. This guide is based on FTC consumer advice and recent fraud data, and it will help you recognize warning signs, protect your money, and know what to do if you’ve been targeted.

What Happened

The FTC’s 2024 fraud report, published in March 2025, shows that reported losses from fraud hit an all-time high of $12.5 billion. While many types of scams rose, online shopping fraud was especially common. Scammers create fake websites, list products at unbelievable prices, and pressure shoppers into paying with gift cards, wire transfers, or cryptocurrency. These methods are nearly impossible to reverse. The FTC’s Consumer Advice blog regularly updates warnings about these schemes, noting that holiday periods see a spike in activity because people are more likely to buy from unfamiliar sites in search of deals.

Why It Matters

If you lose money to an online shopping scam, you may never get it back. Unlike credit card charges, payments made via gift cards or cryptocurrency cannot be reversed. Scammers also collect personal information – your address, phone number, and sometimes even your Social Security number if they talk you into “verifying” your identity. That data can be used for identity theft or sold on dark web markets. For less tech-savvy shoppers, the risk is even greater because they may not know how to verify a seller or recognize a fake website.

What You Can Do

Follow these practical steps, based directly on FTC guidance, to shop safely online.

1. Watch for Prices That Are Too Good to Be True

If a website is selling a popular item for 70% off retail and the store name is unfamiliar, pause. Scammers lure you with deep discounts. Cross-check the price on a known retailer’s site. The FTC advises that if a deal looks impossibly good, it probably is a scam.

2. Check the Seller and Website Carefully

Before entering any payment details, investigate the seller:

  • Search the company name plus “scam” or “complaint.”
  • Look for contact information – a phone number, physical address, and email. Fraudsters often omit these or use fake ones.
  • Examine the web address. Misspellings, extra words (e.g., “amazon-deals-xyz.com”), or “http” instead of “https” are red flags.

3. Be Wary of Urgency Tactics

Phrases like “only 2 left in stock” or “sale ends in one hour” are common pressure tactics. Scammers want you to act without thinking. Legitimate retailers rarely create such urgency for deals that aren’t actually limited.

4. Pay Safely

The safest way to pay online is with a credit card. Under federal law, you can dispute unauthorized charges. Some debit cards offer similar protection, but it’s not guaranteed. Avoid paying with gift cards, wire transfers, or cryptocurrency – these are almost impossible to trace or recover. If a seller insists on any of these methods, stop the transaction immediately.

5. Use Payment Services with Buyer Protection

Services like PayPal (when you use “Goods and Services,” not “Friends and Family”) offer dispute resolution. But remember: scammers sometimes create fake payment confirmations. Always check your actual account or payment app to confirm the transaction went through properly.

6. Research Reviews with Caution

Some fake sites post glowing reviews that are copied from other sources or entirely fabricated. Look for reviews on independent platforms like Trustpilot, and check for patterns – overly repetitive praise or unnatural language can indicate fake feedback.

7. Use Browser Tools (Optional but Helpful)

Several free browser extensions can flag known scam websites based on community reports. For example, tools like Web of Trust or the FTC’s own scam alerts page (consumer.ftc.gov/scam-alerts) can be useful, but they are not perfect. Treat them as one extra check, not a guarantee.

What to Do If You’ve Been Scammed

If you paid with a credit card, contact your card issuer immediately and ask to dispute the charge. If you gave away personal information, consider freezing your credit with the three major bureaus (Equifax, Experian, TransUnion) to prevent identity theft. Report the scam to the FTC at ReportFraud.ftc.gov – your report helps the agency track trends and warn others.

Sources

  • Federal Trade Commission, “New FTC Data Show a Big Jump in Reported Losses to Fraud to $12.5 Billion in 2024,” March 10, 2025.
  • Federal Trade Commission, “How to Avoid an Online Shopping Scam This Holiday Season,” November 25, 2025.
  • Federal Trade Commission, “Don’t Let Scammers Get in the Way of Your Holiday Shopping,” November 25, 2024.
  • Federal Trade Commission, “Top Scams of 2024,” March 10, 2025.
  • Federal Trade Commission, “Top Tips for Avoiding Scams at the Holidays,” December 2, 2019.

Stay cautious this season. A few extra minutes of checking can save you from losing much more than a gift.