Holiday shopping scams are on the rise: How to protect your money and identity

The holiday shopping season is a prime opportunity for scammers. With more people buying gifts online, scammers ramp up their efforts with fake websites, phishing texts, and too-good-to-be-true deals. According to the Federal Trade Commission (FTC), reported fraud losses hit $12.5 billion in 2024 — a record high. And the holiday months typically see a spike in reports.

Here’s what’s happening, why it matters, and concrete steps you can take to avoid becoming a victim.

What’s happening

The FTC publishes annual data on consumer fraud. In 2024, consumers reported losing $12.5 billion to fraud, up from $10 billion in 2023. Online shopping scams are a major piece of that. During the holiday season, scammers exploit the rush and urgency shoppers feel. They set up fake online stores, send phishing emails pretending to be from well-known retailers, and push gift card payment demands.

Common schemes include:

  • Fake websites: Domains that look nearly identical to legitimate retailers, often with slight misspellings (e.g., “amaz0n.com” instead of “amazon.com”).
  • Phishing texts and emails: Messages claiming you need to confirm a shipment or claim a prize, with a link that steals your login or payment info.
  • Social media ads: Paid posts for deep discounts on popular items. The real site never delivers the product, or sends a counterfeit.
  • Gift card payment demands: Scammers insist you pay for a purchase with gift cards (e.g., Google Play, Apple, Visa). Legitimate businesses never require this.

The FTC’s “Top scams of 2024” report listed imposter scams and online shopping scams among the most reported categories.

Why it matters

If you fall for a holiday shopping scam, you not only lose money — you may also have your personal information stolen, which can lead to identity theft. Gift card payments are nearly impossible to recover. Wire transfers are similarly difficult to reverse. And many fake websites are designed to capture your credit card details for later misuse.

The holiday season adds extra pressure: limited-time deals, shipping deadlines, and a general sense of goodwill. Scammers count on you clicking without checking.

The good news: many of these scams are avoidable with a few straightforward habits. The FTC’s advice is consistent year after year, and it still works.

What you can do

Here are practical, FTC-backed steps to protect yourself.

Before you buy

  • Check the website carefully. Look for misspellings in the URL, bad grammar, and missing contact information. If the site claims to sell brand-name goods at a fraction of the price, be skeptical.
  • Read reviews — but with caution. Scammers can post fake five-star reviews. Look for reviews on independent sites (like the Better Business Bureau) and check if the complaints are about undelivered orders.
  • Pay with a credit card. Credit cards offer stronger fraud protection than debit cards or bank transfers. If a merchant demands payment by wire transfer, gift card, or cryptocurrency, stop immediately. That’s a major red flag.
  • Enable transaction alerts on your credit card or bank account so you’ll be notified of unusual purchases.

When you get a message

  • Don’t click links in unsolicited texts or emails. Instead, go directly to the retailer’s website by typing the address yourself.
  • Verify shipment notifications by checking your order history on the retailer’s site, not by clicking a link in a message.
  • Don’t trust caller ID. Scammers can spoof the name of a legitimate company. If someone calls asking for payment or personal info, hang up and call the company back using a number you know is real.

If something goes wrong

  • Act quickly. If you gave out your credit card number, contact your card issuer immediately and dispute the charge. Federal law limits your liability for unauthorized credit card charges to $50, and many card issuers offer $0 liability.
  • Report the scam to the FTC at ReportFraud.ftc.gov. Even if you can’t get your money back, your report helps the agency track scams and stop them.
  • Consider freezing your credit if your Social Security number or other sensitive data was compromised. A credit freeze is free and prevents new accounts from being opened in your name.

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. Link
  • Federal Trade Commission. “As Nationwide Fraud Losses Top $10 Billion in 2023, FTC Steps Up Efforts to Protect the Public.” February 9, 2024.
  • Federal Trade Commission. “Top scams of 2024.” March 10, 2025.
  • Federal Trade Commission. “How to avoid an online shopping scam this holiday season.” November 25, 2025.
  • Federal Trade Commission. “Top tips for avoiding scams at the holidays.” December 2, 2019 (updated annually).