The holiday season is upon us, ushering in family gatherings, festive decor and an excuse to break out the eggnog. There’s a reason we call it the most wonderful time of the year. But unfortunately, it’s also one of the most active seasons for crooks.
And no, we’re not talking about the kind of crooks who force an 8-year-old kid to booby-trap his house while home alone. We’re talking about online scammers who prey on people doing most or all of their shopping on the web. The convenience of online stores can relieve a lot of the stress associated with holiday shopping, but in the rush to get the right present for everyone on your “nice” list, it’s easy to fall for scams.
Worse still, cybercriminals are using increasingly advanced tactics to steal from unsuspecting shoppers. But the troubling reality of online scams doesn’t mean you have to trudge out into the cold and do your holiday gift-buying in stores. You just need to get smart about online shopping. To help you do that, I turned to a cybersecurity expert and a criminal defense attorney with experience in online fraud. Read on for the scams to look out for this season, along with expert advice and tips on how to avoid them while shopping online.
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Common holiday shopping scams
Even with modern security features, such as two-factor authentication, online crooks pose a major threat. A 2024 study by McAfee reported that as many as one in three Americans has fallen victim to a holiday shopping scam. Of those, almost 10% lost more than $1,000.
Government stats corroborate this. Federal Trade Commission data revealed that fraud-related losses soared to $12.5 billion in 2024. Online shopping scams accounted for a large portion of these losses.
In other words, internet fraud is a booming business. So it’s important to know how to protect yourself. Here are the most common holiday shopping scams, what to look out for and how to avoid them.
Fake online stores
How it works: Fake online storefronts are a popular way for scammers to steal your money and/or your payment information. “Today, sophisticated white-collar criminals create a complete replica of a website of a legitimate retailer and use the exact same logo, colors, font and even the same website layout to mimic a website of a well-known brand,” says criminal defense lawyer Michael Kruse.
These fake stores also use enticing deals to lure in unsuspecting shoppers. “In many cases, consumers mistakenly believe they are buying a genuine product at a significantly lower price. However, the website is simply a tool for stealing consumer credit card information,” warns Kruse. “As soon as the transaction clears, the website disappears, and the consumer’s financial information is posted for sale on the dark web.”
How to avoid it: While a sneaky threat, fake websites are easy to avoid with some diligence. “Verify the legitimacy of an online seller before providing any payment information,” Kruse says. “Before entering any payment information, check the URL of the seller’s website for spelling mistakes.”
Another tip is to make sure the website is using encryption. When checking the website to make sure it’s legitimate, also look for “HTTPS” before the URL or the little padlock icon (or both). This indicates the website is encrypting all traffic (including payment information). This by itself doesn’t guarantee that a website is legitimate, but real storefronts will always use encryption to protect customer data.
Fake shipping and delivery alerts
How it works: Another common tactic cybercriminals use is phony delivery notifications. “Beware of SMS [aka text message] scams,” warns cybersecurity expert Stephanie Schneider, a cyber threat intelligence analyst at LastPass, “because they often blend in with messages holiday shoppers would expect, like texts about deliveries, discounts and payments.”
In this scam, you’ll receive an email or text message that looks like it’s from an official source. The scam text will typically claim that a delivery is being held or delayed. The scammer may then request payment to complete delivery or direct you to a fake website, which will prompt you to enter sensitive data, such as payment information, in order to “release” the package.
This tactic is known as phishing (or “smishing” when done via SMS text messages). Attackers can even try to install malware on your device using this “fake message” tactic.
How to avoid it: “Smishing is successful because it taps into the panic and confusion experienced during the holiday rush,” notes Kruse. The important thing is to be vigilant and not get caught off guard by a scammer just because you’re anxious about your gifts being delivered on time.
A good rule of thumb is to never click on links in text messages or emails, even if you suspect they might be genuine. Instead, always go directly to the merchant’s or courier’s website and check the shipment’s tracking information there. Another trick: Look at the sender’s email address or phone number. Strange-looking numbers, such as those with an odd area code or foreign country code, are always red flags.
Social media and online marketplace scams
How it works: Social media websites such as Facebook are increasingly popular places for scammers to operate. Online marketplaces, such as Facebook Marketplace, are especially fertile ground for scams. Criminals may post popular items, such as electronics or sold-out toys, at very attractive prices, then ask for payment online. They could do this to steal your money, your payment information or both.
Marketplaces where private businesses operate are also a hazard. Etsy, for example, is a great place to find unique handmade items, and it’s a popular place to shop for gifts. Unfortunately, that makes it another target for scammers, who create fake shops to lure in time-pressed holiday shoppers.
How to avoid it: The cardinal rule of social media marketplaces is to never give your payment information to someone you don’t know. If you’re buying something from a place like Facebook Marketplace or Craigslist, complete the transaction in person in a safe, public place.
Marketplaces like eBay and Etsy are typically a bit safer than Facebook because these websites offer better protection for buyers and recourse in the event that you do get scammed. Nonetheless, be vigilant about whom you buy from. Always look at the seller’s profile to check the feedback and see how long they’ve been operating on the site.
Charity and donation scams
How it works: Charity fraud is a particularly insidious type of online scam. Instead of taking advantage of the urgency of holiday shopping, charity scams take advantage of people’s generosity and goodwill. Just as they do with fake online stores, criminals set up fake charity websites to collect donations from well-meaning people who are looking to help others around the holidays.
Scammers may set up their own fake websites for this purpose, stealing money and/or payment information, or they may use popular crowdfunding platforms. Fake charities and donation scams can also go undetected for quite a while, collecting impressive sums of illicit cash in the process.
How to avoid it: It’s always good to give to those less fortunate, especially around the holidays. Nonetheless, it’s important to do your research before donating. Websites like Charity Navigator and BBB Wise Giving Alliance make this relatively easy. Finally, the same rules regarding other scams apply to charity scams as well: Don’t click on donation links from unsolicited emails, text messages or social media posts.
Gift-card scams and compromised gift-card sales
How it works: Gift cards, while undeniably convenient, are a rich vein for cybercrime. Scammers may advertise discounted gift cards for suspiciously low prices, often on social media or even their own fake storefront. Naturally, they are happy to take your payment (and your payment information) and then never deliver.
Alternatively, scammers might sell unusable gift cards, such as those that have been stolen or already drained of funds. Since the crook is shipping out actual inventory (even if it’s worthless), this tactic may be used to “buy some time” for the seller to operate longer on an online marketplace before the scam is discovered.
How to avoid it: Only buy gift cards from reputable online vendors, using the same due diligence to avoid fake websites as outlined earlier. Be especially wary of heavily discounted gift cards and offers that seem a little too generous.
Furthermore, avoid private or third-party sellers that only accept payment via gift card, cryptocurrency or wire transfer instead of traditional methods such as credit or debit cards. This is almost always the mark of a scammer. Once a gift card has been drained of funds, you’re unlikely to get the stolen money back.
Malware scams
How it works: This ties into other common holiday shopping scams, such as the aforementioned fake websites or social media scams. Aside from stealing your money and sensitive information, digital crooks often entice shoppers to click on fake ads and links in order to install malware (malicious software) on their victims’ devices. This malware can be anything from spyware to dangerous viruses designed to totally compromise your phone, computer or tablet.
How to avoid it: Be very careful what you click on. This is a good rule to follow when using the internet year-round, but it’s especially important around the holidays, when online scams abound. Don’t open any ads or links you’re not sure of, and be wary of any ads or offers that look “too good to be true.” Scammers are happy to take advantage of the many online shoppers looking for holiday deals on hot items, particularly in-demand or sold-out toys and electronics.
Fake job listing scams
How it works: People can always use more money around the holidays to help with gifts. Scammers are well aware of this and create fake listings for part-time seasonal jobs, offering people some “extra holiday cash.” These are often phishing operations that urge applicants to hand over sensitive information, such as their Social Security number, during the application process.
Scammers may be able to get away with this for a while too; it can be some time before any victims learn that their identity has been stolen. Cybercriminals running fake seasonal job scams also sometimes ask for money in the form of an up-front “application fee.”
How to avoid it: As always, do your research about any company offering seasonal work before you apply. Make sure the listing is posted by a legitimate entity on a real job website, and steer clear of suspicious ads on social media or other less-regulated outlets where scammers like to operate.
Second, be wary of any job listings that offer suspiciously high pay for the work required, as well as any that don’t require a face-to-face interview. And finally, never pay an application fee when applying to a job. Legitimate companies do not require this.
How to protect yourself from scams
Days, weeks or even months can go by before a victim realizes they’ve been compromised. “It is not uncommon for my office to receive calls from consumers weeks after they unknowingly purchased a product online, only to find out about the purchase when they notice unfamiliar charges on their credit/debit card statements,” Kruse told Reader’s Digest.
The important thing is to know how to identify scammers before they rip you off. “In my experience, a little bit of skepticism is the best way to protect yourself from falling victim to a scam,” he adds.
Here are some expert-backed tips to help you stay one step ahead of online crooks while you’re doing your holiday shopping this year:
- Be selective about where you shop. Stick to trusted, well-known retailers and well-reviewed marketplace sellers. Avoid any shady websites with suspicious or misspelled URLs. When shopping at online marketplaces such as Etsy, check seller feedback carefully.
- Do your research. “Do a quick search for the name of the company along with the term scam to verify whether or not there are other reports of scams related to the company,” Kruse suggests.
- Use credit cards instead of debit cards. Credit card companies typically offer better consumer protection in the event of an unauthorized transaction, especially if it’s reported quickly. With a debit card, on the other hand, it’s much harder for the bank to recover your money once it’s already been taken out of your account.
- Avoid nonstandard payment methods. “Never pay for anything using a wire transfer, cryptocurrency or prepaid gift card,” Kruse warns shoppers. “When a seller requests one of these forms of payment, chances are very good that the seller is running a scam.”
- Avoid clicking links in unsolicited emails, social media posts or text messages. When in doubt, go to the merchant’s or courier’s official website yourself and verify whether the notification you received is authentic.
- Don’t get too greedy with your deal-hunting. Scammers know that people are hunting for bargains during the holiday shopping season. Don’t get suckered into clicking on a suspicious link because you’re tempted by a deal or discount that seems a little too good to be true.
- Use two-factor authentication and strong passwords. Good security hygiene is important at all times but especially so around the holidays. “Always use a password manager and multifactor authentication (MFA) for your online accounts, especially when adding your credit card information to a website,” says Schneider.
- Monitor your bank and credit statements. Regularly check your bank and credit card statements for suspicious activity. Criminals rely on their victims being careless and inattentive. Don’t make their scamming easier by letting your guard down.
What to do if you fall for a holiday shopping scam
No matter how careful you are, if you make a lot of purchases online, you are likely to become the target of a scammer at some point. In the event that you fall for a holiday shopping scam, here’s what to do:
- Report it immediately to the financial institution. If you notice or are alerted to suspicious activity on any of your accounts, report it to your bank or credit card issuer immediately. Along with reversing fraudulent charges, they can freeze the card or account, preventing any more damage from being done.
- File a complaint. After contacting the relevant financial institutions, file a complaint with the FBI’s Internet Crime Complaint Center (IC3). This is especially important if you suspect a criminal has stolen your personal information.
- Report scammers to whatever platform(s) they are using. If the scammer is operating on a marketplace website or using a payment processor such as PayPal, contact the platforms and alert them to the fraud.
- Change the password to any compromised accounts. If you entered account credentials, such as a password, into a scammer’s fake website or phishing form, change the password to that account immediately.
- File a report with local law enforcement. You might assume that local law enforcement won’t be able to do much about an online crime. But Kruse stresses that you need to file a complaint with local law enforcement. “Filing a complaint with the local law enforcement agency provides the necessary documentation to support the consumer’s claim when filing a complaint with their bank,” he says.
- Notify credit bureaus if your identity has been compromised. Having your identity (namely, your Social Security number) stolen can be catastrophic. If you suspect that a scammer has gotten hold of your Social Security number and other identifying information, notify the credit bureaus immediately and consider placing a freeze on your credit.
The old maxim “an ounce of prevention is worth a pound of cure” applies to online scams. “The holiday season is an excellent time to purchase items at discounted prices, but as you’re shopping, remember to use common sense,” says Schneider. “Shop with reputable companies, check return policies and always be on the lookout for potential scams.”
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Reader’s Digest has published hundreds of articles on personal technology, arming readers with the knowledge to protect themselves against cybersecurity threats and internet scams as well as revealing the best tips, tricks and shortcuts for computers, cellphones, apps, texting, social media and more. For this piece, Lucas Coll tapped his experience as a seasoned technology writer to ensure that all information is accurate and offers the best possible advice to readers. We rely on credentialed experts with personal experience and know-how as well as primary sources including tech companies, professional organizations and academic institutions. We verify all facts and data and revisit them over time to ensure they remain accurate and up to date. Read more about our team, our contributors and our editorial policies.
Sources:
- Michael Kruse, criminal defense attorney and head of Kruse Law Firm; email interview, November 2025
- Stephanie Schneider, cyber threat intelligence analyst at LastPass; email interview, November 2025
- McAfee: “McAfee’s 2024 Global Holiday Shopping Scams Study Highlights Growing Concerns Over AI-Powered Scams, Including Deepfakes, Impacting Holiday Shoppers”
- Federal Trade Commission: “New FTC Data Show a Big Jump in Reported Losses to Fraud to $12.5 Billion in 2024”
- FBI: “Holiday Scams”
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