How to Avoid Online Shopping Scams This Holiday Season: Advice from the FTC
The holiday shopping season is a busy time for consumers—and for scammers. According to the Federal Trade Commission, Americans reported losing a record $12.5 billion to fraud in 2024, and many of those losses happen during the final months of the year. Fake websites, phishing emails, and deals that look too good to be true are especially common as people rush to buy gifts.
This article walks through the scams you’re most likely to encounter, how to spot them, and what to do if you get tricked. The advice comes straight from the FTC’s consumer alerts and data.
What happened
In March 2025, the FTC released its annual fraud data showing that reported losses jumped sharply in 2024. While not every scam is reported, the numbers give a clear picture of what consumers are up against. Imposter scams, online shopping fraud, and fake investment schemes were among the top categories.
The FTC has also published seasonal alerts reminding shoppers to be cautious. Last November, it issued guidance specifically for holiday shoppers, warning about lookalike websites, unsolicited shipping notifications, and sellers who demand payment by gift card or wire transfer.
Why it matters
Holiday shopping is prime time for scammers because people are busier, more distracted, and more willing to take a chance on a deal. A single fake purchase can cost you hundreds of dollars, and if the scam involves entering your credit card or personal details, you might also face identity theft.
Beyond the financial hit, getting scammed can sour the holiday experience. Knowing how to avoid these traps saves you time, money, and stress.
What readers can do
Red flags to watch for
- Prices that are unusually low – If a popular item is selling for 80% off on a site you’ve never heard of, that’s a warning sign. Scammers set up fake stores to collect payment information and never deliver the product.
- Sites with slight misspellings – Lookalike URLs use common tricks like “rn” instead of “m” (e.g., “amaz0n.com”). Always double-check the domain name before entering any information.
- Requests for unusual payment – Legitimate businesses will take credit cards or services like PayPal. If a seller demands payment by gift card, wire transfer, or cryptocurrency, that’s almost certainly a scam.
- Unsolicited emails or texts – Phishing messages pretending to be from Amazon, FedEx, or your bank may say there’s a problem with your order or a package delivery. Do not click links in those messages. Go directly to the official website or app.
How to shop safely
- Use a credit card, not a debit card. Credit cards offer stronger fraud protection, and you can often dispute a charge if something goes wrong.
- Stick to trusted retailers when possible. If you’re buying from a smaller site, do a quick search for reviews or complaints. Check the Better Business Bureau and search the company name plus “scam.”
- Keep your software and browser up to date – Security patches help block malicious sites and phishing attempts.
- Enable two-factor authentication on your email and payment accounts. This makes it harder for scammers to take over if they steal your password.
- Be skeptical of “limited time” pressure – Scammers often create urgency to get you to act without thinking.
What to do if you are scammed
- Contact your bank or credit card company immediately to report the charge and ask for a chargeback.
- Change your passwords for any accounts you may have used on the fake site.
- Report the scam to the FTC at ReportFraud.ftc.gov. Your report helps them track trends and shut down fraudsters.
- If you sent a gift card or wire transfer, contact the gift card company or money transfer service right away. There may be a short window to recover funds, but it’s not guaranteed.
Sources
- FTC, “How to avoid an online shopping scam this holiday season,” November 2025
- FTC, “Don’t let scammers get in the way of your holiday shopping,” November 2024
- FTC, “New FTC Data Show a Big Jump in Reported Losses to Fraud to $12.5 Billion in 2024,” March 2025
- FTC, “Top scams of 2024,” March 2025