How to Spot and Avoid Online Shopping Scams This Holiday Season

The holiday shopping season is prime time for online scams. As millions of consumers click “buy,” fraudsters are busy setting up fake stores, sending phishing emails, and posting deals that are too good to be true. According to the Federal Trade Commission (FTC), reported fraud losses hit a record $12.5 billion in 2024—a sharp increase from previous years. Whether you’re shopping for gifts in December or just browsing in July, knowing how to recognize the red flags can save you money and stress.

What’s happening

Online shopping scams take many forms. The FTC’s latest data shows that the most frequently reported scams involve:

  • Fake websites that mimic real retailers, often using lookalike domains (e.g., “amaz0n.com” instead of “amazon.com”).
  • Non-delivery scams, where you pay for an item that never arrives.
  • Phishing emails or texts, supposedly from a delivery service or retailer, that ask you to click a link or share personal information.
  • Counterfeit goods or items that don’t match the description.

While these schemes spike during the holidays, they happen year-round. The FTC’s 2024 fraud report notes that online shopping scams alone accounted for a large share of the $12.5 billion in total losses—across all age groups.

Why it matters

Scams are becoming more convincing. Fraudsters use stolen logos, realistic website designs, and even social media ads to appear legitimate. Once you enter your payment details or share a gift card code, recovering the money is difficult.

Paying by credit card gives you stronger consumer protections under the Fair Credit Billing Act. Debit cards and wire transfers offer far less recourse. Scammers often ask for gift cards or cryptocurrency because those payments are nearly impossible to trace or reverse.

The emotional toll is also real. Receiving nothing for your money—or worse, having your identity stolen—can ruin what should be a joyful season.

What readers can do

Here is a practical checklist, based directly on FTC consumer advice, to help you shop safely online.

1. Verify the website before entering payment details

  • Look closely at the URL. Scammers register addresses that are one letter off from the real brand.
  • Check for “https://” and a padlock icon, though these aren’t perfect guarantees—criminals can get certificates too.
  • Search for reviews of the store. If you find multiple complaints about non-delivery, avoid it.

2. Be skeptical of unsolicited offers

  • That email announcing a 90% off sale from a brand you’ve never purchased from? Probably phishing. Don’t click links; go directly to the retailer’s website by typing the URL yourself.
  • Social media ads with rock-bottom prices are a common gateway to fake stores.

3. Pay with a credit card

  • Credit cards limit your liability for fraudulent charges. Debit cards and bank transfers do not.
  • Never pay by wire transfer, gift card, or cryptocurrency for an online purchase from a stranger. Those are scam favorites.

4. Read the fine print on shipping and returns

  • Scam sites often have no physical address or phone number. Legitimate businesses provide clear contact information and return policies.
  • Search the store name plus the word “scam” to see if others have flagged it.

5. Use secure networks

  • Avoid making purchases on public Wi-Fi, such as at a coffee shop or airport. Use your phone’s cellular data or a VPN if you must shop on the go.

6. Trust your instincts

  • If a deal seems unrealistic (e.g., a $500 item for $50), it probably is. Scammers rely on urgency: “Limited stock! Buy now!” Slow down and verify.

What to do if you’ve been scammed

  • Contact your bank or credit card issuer immediately to report the charge and request a dispute.
  • Change passwords for any accounts you may have compromised.
  • Report the scam to the FTC at ReportFraud.ftc.gov. You can also file a complaint with the FBI’s Internet Crime Complaint Center (IC3) if the loss is significant.
  • Monitor your financial accounts for unusual activity for several months.

Sources

  • Federal Trade Commission, “How to avoid an online shopping scam this holiday season” (November 25, 2025)
  • FTC, “New FTC Data Show a Big Jump in Reported Losses to Fraud to $12.5 Billion in 2024” (March 10, 2025)
  • FTC, “Don’t let scammers get in the way of your holiday shopping” (November 25, 2024)
  • FTC, “Top scams of 2024” (March 10, 2025)

These articles are available at consumer.ftc.gov. The advice above draws from their published guidance, not from any single post.