Avoid Online Shopping Scams This Holiday Season: What You Need to Know

The holiday season is prime time for online shopping—and, unfortunately, for scammers looking to take advantage of rushed buyers. According to the Federal Trade Commission (FTC), reported fraud losses in the United States hit $12.5 billion in 2024, a significant jump from previous years. Impersonation scams, where fraudsters pose as well-known retailers, delivery services, or even friends, were among the top categories.

If you plan to buy gifts online this year, knowing how to spot a scam before you click “pay” can save you money, stress, and time. Below is practical advice drawn from the FTC’s consumer guidance to help you shop safely.

What Happened

The FTC’s latest data, released in March 2025, show that consumers reported losing $12.5 billion to fraud in 2024, up from roughly $10 billion in 2023. That’s a 25% increase in a single year. While not every dollar lost is tied to holiday shopping, the pattern is clear: scammers intensify their efforts during peak retail periods, and more people are online, distracted, and willing to trust unfamiliar sellers.

Common holiday scams include:

  • Fake websites that mimic legitimate retailers like Amazon, Walmart, or Target, offering deals that seem too good to pass up.
  • Phishing emails and texts that appear to come from shipping carriers (UPS, FedEx) or retailers, asking you to click a link to “confirm your order” or “track your package.”
  • Social media ads for luxury goods or popular electronics at deep discounts from unknown sellers.
  • Gift card and payment app scams, where the seller insists on payment via wire transfer, cryptocurrency, or gift cards.

Why It Matters

Fraud doesn’t just take your money. It can also expose your personal information—credit card numbers, addresses, even passwords—which can be used for identity theft or sold on the dark web. And because holiday shoppers often act quickly, they may skip the checks that would otherwise protect them.

The emotional cost is also real. Losing money meant for gifts or travel, especially during a season already heavy with financial pressure, can be demoralizing. Knowing how to recognize red flags helps you keep your holidays safe and stress-free.

What You Can Do

Here are actionable steps, based on FTC recommendations, to reduce your risk.

1. Verify the Seller Before You Buy

If you come across a deal on social media, a pop-up ad, or a site you’ve never heard of, do a quick check. Search the company name plus words like “scam” or “complaint.” Look for reviews on independent sites—not just the testimonials on the seller’s own page. Be wary of sellers that have no online presence beyond a single ad or an Instagram account with few followers.

2. Inspect the Website URL

Scammers often register domain names that look almost like the real thing—for example, amaz0n-deals.com or walmart-shop.xyz. Check that the URL matches the official retailer’s name. Also look for “https://” and a padlock icon in the address bar. The “s” stands for secure, meaning data is encrypted during transmission. But be aware: some scam sites now use HTTPS, so it’s not a guarantee of legitimacy.

3. Pay With a Credit Card

The FTC, along with most consumer advocacy groups, recommends using a credit card for online purchases. Credit cards offer stronger fraud protection under federal law (the Fair Credit Billing Act). If a charge is unauthorized or you never receive the item, you can dispute it with the card issuer. Debit cards, wire transfers, gift cards, and payment apps like Venmo or Cash App (when used for goods) generally have far fewer protections.

4. Watch for Pressure and Unusual Payment Methods

Scammers often create a false sense of urgency—“Limited stock!” or “Offer ends in 10 minutes!”—to rush you into a decision. Another red flag is insistence on payment via gift card, cryptocurrency, or wire transfer. Legitimate retailers don’t ask for these methods.

5. Be Skeptical of Unsolicited Messages

If you get an email or text about a package delivery, a refund, or a special deal, do not click links or download attachments. Instead, go directly to the retailer’s or carrier’s website by typing the address into your browser. Scammers send messages that look real, complete with logos and official-sounding language, but the goal is to steal your login or financial information.

6. Report Suspected Scams

If you believe you’ve been scammed, act quickly. Contact your credit card issuer or bank to report the charge and ask about disputing it. Then report the scam to the FTC at ReportFraud.ftc.gov. Your report helps investigators track patterns and may help prevent others from falling victim. Also consider filing a report with your state attorney general’s consumer protection office.

Staying Safe Is an Ongoing Habit

No single step guarantees you’ll never encounter a scam, but combining these practices makes you a much harder target. Take an extra minute to verify a seller, check the URL, and choose a credit card over other payment methods. The holidays can still be a time for finding great deals—but the best deals are the ones that actually arrive.

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, “Top Scams of 2024” (March 10, 2025)