Holiday Shopping Scams Are Surging: How to Protect Your Wallet This Season

The holiday shopping season is when scammers work the hardest. According to new data from the Federal Trade Commission (FTC), Americans reported losing $12.5 billion to fraud in 2024 — a sharp jump from the $10 billion reported in 2023. Online shopping scams accounted for a large share of those losses, and the agency expects the trend to continue this year.

The good news: you don’t have to be a victim. Knowing how these scams operate and taking a few basic precautions can make the difference between a successful purchase and a costly headache.

What happened

In March 2025, the FTC released its annual fraud report showing that reported losses to fraud hit $12.5 billion in 2024 — the highest ever recorded. The agency also published its annual list of top scams, which placed online shopping scams near the top. The FTC’s consumer advice page, updated in November 2025, specifically warns about three types of holiday scams:

  • Fake websites that mimic legitimate retailers, often using slightly misspelled URLs or professional-looking templates.
  • Social media ads that promote incredible deals on popular items, but lead to pages that either steal your payment info or never ship anything.
  • Phishing emails and text messages that pretend to be from carriers like UPS, FedEx, or USPS, saying a package delivery failed and asking you to click a link to reschedule. The link leads to a fake login page designed to harvest your credentials and payment details.

The FTC notes that scammers also pressure victims to pay via gift cards, wire transfers, or payment apps like Zelle and Venmo — methods that are nearly impossible to reverse.

Why it matters

The $12.5 billion figure is almost certainly an undercount. The FTC acknowledges that many victims never report fraud, either because they feel embarrassed or believe nothing can be done. In reality, reporting helps law enforcement track patterns and issue warnings.

For consumers, the holidays create a perfect storm: everyone is busy, budgets are stretched, and the desire to find a good deal can override caution. Scammers exploit that urgency with messages like “Limited stock — order now” or “Your package is waiting — confirm delivery.” A single click on a malicious link can drain a bank account or install malware that snoops on passwords.

The financial impact can be severe, but the emotional toll matters too. Many victims describe feeling violated and embarrassed, which is why public awareness is the most effective defense.

What readers can do

Here are concrete steps you can take to avoid online shopping scams this holiday season, drawn directly from FTC consumer advice:

Spot the red flags

  • Prices that are too good to be true. If a jacket that normally costs $200 is suddenly $35 from an unfamiliar store, it’s likely a scam. Scammers rely on the allure of a steal.
  • Unusual payment requests. Legitimate retailers take credit cards. If a seller insists on gift cards, wire transfers, or cryptocurrency, stop the transaction.
  • Sloppy or inconsistent website details. Check the URL for unusual spellings (like “amaz0n.com” instead of “amazon.com”). Look for contact information, a physical address, and a privacy policy. If those are missing or vague, be suspicious.
  • Urgency or threats. Messages that say “Your package is delayed — click here to reschedule” are almost always phishing. Carriers will leave a notice on your door; they don’t send unsolicited texts with links.

Shop safely

  • Buy directly from official retailers. If you see an ad for a product on social media, open a new tab and go directly to the store’s website. Don’t use the link in the ad.
  • Use a credit card, not a debit card. Credit cards offer stronger fraud protection. Under US law, your liability for unauthorized credit card transactions is limited to $50, and most issuers will waive that if you report quickly. Debit cards don’t have the same protections, and the money is gone from your account immediately.
  • Enable purchase alerts. Most banks and card issuers allow you to set up notifications for transactions over a certain amount. This gives you a chance to catch fraud early.
  • Verify reviews carefully. Scammers often buy fake positive reviews. Use services like Fakespot or ReviewMeta to analyze review authenticity. Also check the Better Business Bureau and the FTC’s complaint database.

What to do if you suspect a scam

  1. Stop all communication with the scammer.
  2. Contact your bank or credit card issuer immediately. Explain what happened and ask them to reverse the charge if possible.
  3. Report the scam to the FTC at ReportFraud.ftc.gov. Your report helps the agency track patterns and issue alerts.
  4. Monitor your accounts for any unauthorized charges in the weeks and months after.
  5. If you clicked a malicious link, run a malware scan and change your passwords for any accounts you use on that device.

Sources

  • Federal Trade Commission. “How to avoid an online shopping scam this holiday season.” Consumer Advice, November 2025.
  • Federal Trade Commission. “New FTC Data Show a Big Jump in Reported Losses to Fraud to $12.5 Billion in 2024.” Press release, March 10, 2025.
  • Federal Trade Commission. “Top scams of 2024.” Consumer Advice, March 10, 2025.
  • Federal Trade Commission. “As Nationwide Fraud Losses Top $10 Billion in 2023, FTC Steps Up Efforts to Protect the Public.” Press release, February 9, 2024.
  • Federal Trade Commission. “Top tips for avoiding scams at the holidays.” Consumer Advice, December 2019.