Holiday Shopping Scams: 5 Ways to Spot and Avoid Them This Year

If you are shopping online this holiday season, you are also shopping for fraudsters. The Federal Trade Commission reported that consumers lost $12.5 billion to fraud in 2024, a significant jump from the $10 billion reported in 2023. Online shopping scams consistently rank among the top complaint categories, and during the holiday rush—when people are busy, distracted, and looking for deals—scammers increase their efforts.

Here’s what’s happening, why it matters, and—most importantly—how you can protect yourself this year.

What Happened

The FTC’s latest data, released in March 2025, shows that reported fraud losses rose by roughly 25% from 2023 to 2024. Online shopping and imposter scams were two of the categories that drove that increase. The agency also publishes annual consumer advice warnings ahead of the holiday season, and the pattern is consistent: fake websites, lookalike storefronts on social media, fraudulent shipping notifications, and pressure to pay using gift cards, wire transfers, or payment apps like Venmo and Cash App.

In 2023, the FTC noted that consumers reported losing $8.8 billion in 2022. The upward trend has continued each year since.

Why It Matters

The holidays are emotional and expensive. People are more willing to trust a deal that seems too good, especially if a gift is hard to find or shipping deadlines are tight. Scammers exploit that urgency. They set up websites that mimic well-known retailers, place fake listings on legitimate marketplaces, and send phishing emails disguised as package tracking alerts.

When a scam succeeds, the consumer loses both money and time. Recovering funds after paying by gift card or wire transfer is extremely difficult. Payment app transactions sent to a scammer are rarely reversible. And identity theft risks increase if the scam involved sharing personal or financial information.

The impact goes beyond the individual. Widespread fraud erodes trust in online commerce and adds friction to legitimate transactions.

What Readers Can Do

The FTC and other consumer protection agencies offer straightforward, evidence-based advice. These five steps cover the most common scenarios.

1. Verify the seller before you buy. Use stores you already know. If you are trying a new site, search for the business name plus “scam” or “complaint.” Check the URL carefully—scammers often register addresses that differ by one or two letters from real domain names. Look for a working phone number, a physical address, and a clear return policy.

2. Pay by credit card. Credit cards offer stronger fraud protections than debit cards, bank transfers, or payment apps. Under U.S. law, you can dispute charges for items that never arrive or were misrepresented. Scammers know this and will pressure you to pay using gift cards, wire transfers, or cryptocurrency. Any seller who insists on those methods is likely a fraud.

3. Be skeptical of “too good to be true” deals. A luxury item at 80% off, or an electronic that is sold out everywhere… but one site has stock? That is a red flag. Compare prices across multiple reputable retailers. If the discount is extreme, the product probably does not exist.

4. Think before you click on shipping notifications. Fake tracking emails and text messages are common during the holidays. They may contain links that install malware or lead to a phishing page that steals your login credentials. Instead of clicking a link in an unexpected message, go directly to the carrier’s website or the retailer’s order page.

5. Know what to do if you get scammed. Act quickly. Contact your bank or credit card issuer to report the unauthorized charge. Change the passwords on any accounts you may have shared. Then file a report with the FTC at ReportFraud.ftc.gov. The agency does not resolve individual complaints, but the data helps them track scams, warn others, and pursue enforcement actions. Also report fake listings to the platform where you found them.

Sources

  • Federal Trade Commission. “How to avoid an online shopping scam this holiday season.” Consumer Advice, November 25, 2025.
  • Federal Trade Commission. “Don’t let scammers get in the way of your holiday shopping.” Consumer Advice, November 25, 2024.
  • 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. “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 scams of 2024.” Consumer Advice, March 10, 2025.
  • Federal Trade Commission. “New FTC Data Show Consumers Reported Losing Nearly $8.8 Billion to Scams in 2022.” Press release, February 23, 2023.