Scammers are shopping for opportunities this holiday season, too. From fake websites and social media ads to gift card and payment scams, knowing the warning signs can help. Check out these simple tips to help protect your money while holiday shopping.
The holiday season is one of the busiest shopping times of the year. Whether you're shopping online, browsing social media for gift ideas, or checking off your list at local stores, scammers are looking for opportunities to take advantage of the increased spending and activity.
The good news? A few simple precautions can help you spot suspicious deals, avoid common shopping scams and keep your money and personal information safer this holiday season.
Scammers often lure shoppers with unbelievable discounts on popular items. You may see advertisements on social media or unfamiliar websites offering high-demand products at prices that seem impossible to pass up.
If a deal looks dramatically lower than prices offered by major retailers, take a closer look before making a purchase. According to the FTC, fake shopping websites frequently use stolen images and logos to appear legitimate while collecting payment information or failing to deliver products.
Tip: Research unfamiliar retailers before purchasing. Search the company name along with words such as "reviews," "complaints," or "scam" to see what other consumers are saying.
Many holiday shoppers discover gifts through social media, but scammers know that, too. Fraudulent ads often promote trendy products at steep discounts and direct shoppers to fake websites.
Before purchasing through a social media ad:
> Visit the retailer's website directly instead of clicking the ad
> Verify the company's contact information
> Look for independent reviews
> Be skeptical of high-pressure offers with countdown timers or limited-time claims
FTC consumer alerts specifically warn that scammers frequently use social media advertisements to drive traffic to fake online stores.
How you pay matters. Credit cards generally offer stronger fraud protections and may allow you to dispute charges if an item never arrives or is significantly different from what was advertised. The FTC recommends using credit cards when possible for online purchases.
Be especially cautious if a seller asks you to pay with:
> Gift cards
> Wire transfers
> Cryptocurrency
> Peer-to-peer payment apps for purchases from strangers
These payment methods are favorites among scammers because they are difficult to reverse.
Before entering payment information online, take a moment to inspect the website.
Look for:
> "https" at the beginning of the web address
> A padlock icon in the browser bar
> Correct spelling of the retailer's name and URL
Scammers often create look-alike websites that closely resemble legitimate businesses. Checking the website address carefully can help you avoid entering information on a fraudulent site.
Gift cards remain one of the most requested holiday gifts, which makes them attractive targets for fraudsters.
Common gift card scams include:
> Someone asking you to pay a bill or fee with gift cards
> Fake prize notifications requiring gift card payment
> Tampered gift cards displayed on store racks
Remember: Legitimate businesses and government agencies do not demand payment using gift cards.
Holiday scams often start with a text, email, or phone call claiming there's an issue with your account, package delivery, or recent purchase.
Be cautious of messages that:
> Create a sense of urgency
> Ask you to click a link
> Request passwords or account information
> Ask for one-time passcodes or verification codes
Never share passwords, PINs, security codes, or one-time passcodes with anyone. Scammers often impersonate trusted businesses to obtain this information. Information from Arizona Financial fraud awareness materials also highlights the importance of protecting one-time passcodes and account credentials.
Many people shop while traveling or working remotely during the holiday season. Public Wi-Fi networks in airports, hotels, and coffee shops can expose your personal information if the network is not secure.
If possible:
> Avoid making financial transactions over public Wi-Fi
> Use your mobile network or a trusted VPN
> Wait until you're on a secure network before accessing banking or payment accounts
Save order confirmations, receipts, and shipping information. If something goes wrong, these records can help you dispute charges, obtain refunds, or report fraud.
The FTC recommends keeping documentation in case you need to work with a merchant or your payment provider to resolve a problem.
If something doesn't feel right, trust your instincts.
Take these steps:
> Stop communicating with the suspected scammer
> Do not click additional links or provide information
> Contact the retailer, financial institution, or card issuer directly using a verified phone number
> Monitor your accounts for suspicious activity
> Report fraud to the appropriate authorities
Acting quickly can help limit potential losses and protect your accounts.
The holidays should be about celebrating with family and friends, not dealing with fraud. Taking a few extra moments to verify a website, research a retailer, or question an unexpected message can make a big difference.
When shopping this holiday season, remember: If something seems too good to be true, it probably is. Staying aware and following a few simple precautions can help keep your money, personal information, and holiday spirit safe.
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