The holiday season is a time for fun, festivities, and lots of gift-giving to friends and family. However, it’s equally as important for scammers looking to take advantage of unsuspecting shoppers. As online shopping continues to grow, so does the risk of shopping season scams, online fraud, and other deceptive techniques. Staying informed and alert can save you from financial loss and ensure a stress-free holiday season. In this blog, we highlight some of the most common holiday scams found worldwide, share tips for holiday scam prevention, and offer several strategies for you to boost your seasonal scam awareness.
Worried about online scams? Take our Security Quiz to find out how safe you are online.
Why Holiday Scams Are So Common
Consumers are often busier, more trusting, and more likely to let their guard down during the busy holiday season. Scammers will often capitalize on this by:
- Exploiting the increase in online shopping and deliveries.
- Targeting individuals through fake emails, websites, and social media ads.
- Preying on the urgency of holiday deals and limited-time offers.
According to a recent FBI warning, holiday-related online scams are at an all-time high, making online fraud one of the biggest threats during the season.
Top Holiday Scams to Watch Out For
1. Fake Online Stores and Websites
Scammers will create fake websites that mimic legitimate retailers that sell goods you might be shopping for this holiday season. These websites often advertise hard-to-find items or incredible deals that seem too good to be true.
How It Works:
- You find a great deal online and make a purchase.
- The product never arrives or you receive a counterfeit item.
- The scammer disappears with your payment information.
Holiday Scam Prevention Tips:
- Always verify the website’s URL. Look for typos, strange domain names, or missing HTTPS security.
- Read reviews and check the retailer’s reputation before making a purchase.
- Use an advanced security platform like Online Security to keep you protected online.
2. Phishing Emails and Texts and Online Fraud
Phishing scams surge during the holidays. This is because scammers often send fake emails or text messages pretending to be legitimate shipping companies, retailers, or even banks.
How It Works:
- You receive an email or text claiming there’s an issue with your order or delivery.
- You’re prompted to click a link or enter personal information.
- The link installs malware or steals your financial data.
Seasonal Scam Awareness Tips:
- Avoid clicking on suspicious links or attachments in emails.
- Verify the sender’s email address. Legitimate companies will not ask for sensitive information via email.
- Track packages only through official retailer or shipping websites.
Take our Security Quiz to find out how safe you are online.
3. Fake Charity Scams and Shopping Season Scams
During the holiday season, people sometimes feel more charitable. This allows scammers to exploit their feelings by creating fake charities to collect donations.
How It Works:
- Scammers create fake websites, calls, or messages claiming to raise funds for a cause.
- Donations go to the scammer instead of those in need.
Holiday Scam Prevention Tips:
- Research charities before donating. Use websites like Charity Navigator to confirm legitimacy.
- Avoid donating through unsolicited calls, texts, or emails.
- Contribute directly through verified charity websites.
4. Delivery Scams
With millions of packages being shipped during the holidays, scammers take advantage of this by sending fake delivery notifications or “missed delivery” alerts to people.
How It Works:
- You receive an email or text asking you to confirm delivery details or pay additional shipping fees.
- Clicking the link installs malware or steals your personal information.
Delivery Scam Safety Tips:
- Track deliveries through the retailer’s website or the official shipping carrier.
- Do not pay for unexpected shipping fees without verification.
- Avoid clicking links in unsolicited delivery notifications.
5. Gift Card Scams
Gift cards are a popular holiday present, but scammers will manipulate them by selling fake cards or even stealing card details.
How It Works:
- Scammers sell discounted or fake gift cards that don’t work.
- In some cases, scammers request payment via gift cards, which are harder to trace.
Seasonal Scam Awareness Tips:
- Only purchase gift cards from reputable retailers.
- Avoid third-party websites offering gift cards at steep discounts.
- Never use gift cards as payment for purchases or services.
Worried about online scams? Take our Security Quiz to find out how safe you are online.
6. Social Media Shopping Scams
Scammers will advertise fake products or giveaways through social media ads that redirect to fraudulent websites.
How It Works:
- A fake ad appears on social media, offering a great deal.
- Clicking the ad takes you to a scam website designed to steal payment details.
Holiday Scam Prevention Tips:
- Avoid impulsively clicking on social media ads.
- Confirm the legitimacy of online stores before purchasing.
- Report suspicious ads or pages to the social media platform.
7. Travel Scams
With holiday travel in full swing, scammers target travelers with fake deals on flights, hotels, or vacation packages.
How It Works:
- Fake travel websites or emails promise deeply discounted prices.
- You book a trip, only to realize later that it’s a scam.
Tips to Avoid Travel Scams:
- Book travel only through reputable websites or agents.
- Be cautious of deals that sound too good to be true.
- Use travel insurance to protect against unforeseen issues.
How to Stay Safe: Key Holiday Scam Prevention Strategies
- Stay Vigilant When Shopping Online: Use well-known, trusted retailers for your holiday shopping, and look for the HTTPS lock symbol in the website URL. Also, avoid making purchases on public Wi-Fi without a VPN.
- Monitor Your Bank and Credit Card Statements: Regularly review transactions for any unusual activity. Early detection can help prevent major financial loss.
- Use Credit Cards for Purchases: Credit cards offer better fraud protection compared to debit cards. If a fraudulent charge occurs, you can dispute it.
- Enable Two-Factor Authentication (2FA): Add an extra layer of protection to your accounts by enabling 2FA wherever possible.
- Be Cautious with Emails and Links: Always verify the legitimacy of emails, texts, or ads before clicking any links or sharing information.
- Educate Yourself and Others: Share seasonal scam awareness with family and friends to help them avoid falling victim to scams.
Holiday Scam Prevention: Stay Alert and Shop Safely This Holiday Season
While the holiday season is a time to celebrate, it’s also a peak period for scammers looking to exploit the shopping rush. By understanding the most common shopping season scams and taking proactive steps for holiday scam prevention, you can protect your finances, personal information, and peace of mind. Stay cautious, shop smart, and keep online fraud at bay by following the tips outlined in this guide. At ReasonLabs, we’re committed to helping you navigate the digital landscape safely—during the holidays and beyond.
