Holiday Shopping Scams Are on the Rise: How to Protect Yourself
The holiday shopping rush is a prime time for scammers. According to the Federal Trade Commission (FTC), consumers reported losing $12.5 billion to fraud in 2024 — a steep increase over previous years. Fake online stores, phishing emails disguised as shipping notifications, and too-good-to-be-true deals on social media cost people real money. The good news is that most of these scams follow predictable patterns. Knowing what to look for can save you both cash and personal information.
What Happened
The FTC’s latest data on fraud losses, released in March 2025, shows a significant jump from $10 billion in 2023. Online shopping scams are among the top categories reported. Scammers are getting better at mimicking legitimate retailers, creating convincing websites that disappear after collecting payments, and sending emails that look exactly like order confirmations from Amazon or UPS.
The agency has also noted that scammers increasingly use social media ads and sponsored posts to push counterfeit goods or outright fake stores. Many victims are drawn in by steep discounts on electronics, clothing, or gift cards — the very items people hunt for during holiday sales.
Why It Matters
Holiday shopping is stressful enough without worrying about whether a deal is real. But the stakes go beyond losing a few hundred dollars. Handing over payment details, addresses, and other personal data can lead to identity theft. And because scammers often demand payment via wire transfer, cryptocurrency, or gift cards — methods that leave virtually no paper trail — recovering money is difficult. Credit card companies offer fraud protections, but only if you use them.
The FTC emphasizes that prevention is the most effective tool. With fraud losses climbing year over year, understanding the warning signs isn’t just helpful — it’s necessary for anyone who shops online.
What Readers Can Do
The steps below are based on official FTC consumer advice. No single measure is foolproof, but applying a few of them will dramatically reduce your risk.
1. Verify the seller or website before you buy
If you discover a store through a social media ad or search engine result, don’t assume it’s legitimate. Check the domain name carefully. Scammers often use addresses that are slight misspellings of real brands — for example, “nikeoutlet-shop.com” instead of “nike.com.” Look for contact information like a physical address and customer service phone number. Call or email them before ordering to see if they respond.
Search for reviews of the site, but do so with caution: fake positive reviews are common. Try searching the store’s name plus “scam” and “complaint.” The FTC also recommends checking with the Better Business Bureau.
2. Pay with a credit card, not a debit card or wire transfer
Credit cards offer the strongest fraud protections under federal law. If you never receive the item or the product is clearly fake, you can dispute the charge. Debit cards have weaker protections, and once the money is gone from your bank account, getting it back is much harder. Never pay for an online purchase with a wire transfer, cryptocurrency, or a gift card. Scammers push these methods specifically because they are nearly irreversible.
3. Look for red flags in emails and messages
Phishing emails often contain urgent language: “Your order has been delayed — confirm your address now” or “Action required to deliver your package.” They might include a link that leads to a fake login page designed to steal your password. Before clicking, hover your mouse over the link to see the actual URL. If it looks suspicious or doesn’t match the official website, don’t click. Go directly to the retailer’s site by typing the address yourself.
4. Be skeptical of deals that seem too good
If a popular item is listed at 80% off and the website looks sloppy, it’s almost certainly a scam. Scammers exploit the urgency of limited-time offers. Take a moment to check the price against other reputable stores. If the discount is unrealistically deep, it’s a red flag.
5. Protect your device and personal information
Keep your browser and antivirus software up to date. Avoid making purchases over public Wi-Fi unless you use a VPN. Use unique passwords for each shopping account, and consider using a password manager. Two-factor authentication adds another layer of protection, especially for accounts that store payment information.
6. What to do if you think you’ve been scammed
Act quickly. First, contact your credit card issuer or bank to report the fraudulent charge and ask them to reverse it. Then report the scam to the FTC at ReportFraud.ftc.gov. If you used a debit card and the money was taken, contact your bank immediately. You can also file a complaint with the FBI’s Internet Crime Complaint Center (IC3) if significant funds were lost. Finally, change passwords for any accounts you used on the fake site.
Sources
- Federal Trade Commission, “How to avoid an online shopping scam this holiday season” (2025)
- Federal Trade Commission, “New FTC Data Show a Big Jump in Reported Losses to Fraud to $12.5 Billion in 2024” (2025)
- Federal Trade Commission, “Don’t let scammers get in the way of your holiday shopping” (2024)
- Federal Trade Commission, “Top tips for avoiding scams at the holidays” (2019)