The frenzy of holiday shopping, fueled by our search for the perfect gift and irresistible deals, creates the ideal storm for scams. Fraudsters know it’s the busiest time of year for shoppers, and they take full advantage, rolling out some of their most sophisticated schemes. As the holidays approach, recognize common shopping scams and learn how to protect yourself.
Back in the day, holiday scams were as simple as questioning whether that street corner Santa was collecting for charity—or just for himself. Now, the creativity behind today's seasonal scams almost makes swiping pocket change seem quaint.
In reality, there’s nothing charming about the modern holiday shopping scams. Looking back at the 2022 holiday season, the Federal Bureau of Investigation’s Internet Crime Complaint Center (FBI’s IC3) said they received complaints from almost 12,000 scam victims. When their losses were totaled, these victims were out more than $73 million.
Some scammers even pulled off advent calendar scams and used puppies to steal money from would-be owners. As we approach the holidays, get your guard up against the various types of shopping scams.
Holiday shopping scam: Gift-card grinches
The Better Business Bureau (BBB) warns against buying gift cards off the racks and from kiosks you see at grocery stores, drugstores, and more.
In one gift card scam, the BBB explains, thieves take those cards off the rack, peel off the privacy stickers, record the PINs and the card numbers, apply new stickers, and then return the cards to their place.
Next, the thieves enter all the numbers into a program that signals when a consumer loads cash onto one of the tampered-with cards. The thieves then divert that cash into their own accounts. When the gift card recipient tries to use their gift card, the balance comes up as empty.
To prevent this from happening, follow these gift card safety tips:
Only buy gift cards stored behind the counter at a major retailer. Ideally, purchase a gift card directly from the vendor with whom it will be cashed.
Be cautious when buying discounted gift cards; all too often, they are blank.
Don’t interact with any group that offers “free” gift cards.
If the packaging on a gift card appears to have been tampered with, opt for a new, pristine one.
Buy prepaid cash cards at a bank or credit union rather than off the rack.
Holiday shopping scam: Fake shopping sites
Making a knockoff website that mimics a legitimate retailer takes little more than a few clicks these days. While the site’s logos and goods might appear like the real deal, the sham site exists only to snatch your money and score your information.
Here are some ways you can steer clear of these fake sites:
Look for web addresses that begin with “https://” and include the icon of a padlock.
Type in the desired URL by hand rather than clicking on a link or relying on autofill.
Check the spelling of the company name in the URL. Does it match exactly the real brand?
See if the prices are slashed beyond common sense. If so, take that as a warning.
Call the brand’s consumer helpline to verify the site, the company’s sales, and other information. (Get the number from a trusted search engine rather than the potentially fake site.)
Holiday shopping scam: Too-good-to-be-true presents
Every year, the most popular holiday toys, products, and trending luxury items fly off the shelves, leaving family members and friends scrambling to find them. In the rush, it’s easy to overlook red flags.
And that’s where scammers step in—sometimes selling knockoff products, or worse, taking your money without delivering anything at all. Stay alert with these tips to identify a potential gift scam:
Be wary about buying popular toys or other products on third-party sites. If you must, carefully examine the goods before you pay.
Don’t shop from a seller who demands you pay with a gift card.
Use a credit card or a reputable money transfer company (this puts a layer between your finances and the seller and gives you recourse should the transaction go poorly).
Watch out if you get several messages like that about the same product from different email addresses, companies, or phone numbers.
Pet scams during the holidays
Picture this: you respond to an ad for a puppy and send a cash deposit to reserve it until it’s ready for pickup or delivery. But when the time comes, the breeder or seller vanishes. The FBI’s IC3 reported that in 2023, they got 3,500 complaints about puppy scams, with fraudsters making off with nearly $6.6 million.
Screen any pet seller by looking them up on the Better Business Bureau site. Are they a registered business in good standing? Do they crop up in the BBB Scam Tracker?
If possible, don’t buy a pet you’ve never seen in person.
Review the seller’s social media posts (and the comments). How far back do they go? Do the commentators link to “real” people with posts featuring them and their pets?
Use your credit card – never a gift card, cash, or payment app – to pay.
Do an image search using the puppy photos they share with you. Are they lifted from some other site or source?
Holiday shopping scam: Imposter texts, emails, DMs, and social media ads
During the holidays, scammers also aim to slip in amongst the onslaught of legitimate offers and notices. So how do you tell the good guys from the bad?
First, be aware of where and how they might reach out: over text, via an ad on social media, with a phone call, or direct messages and emails. You might even find fliers left on your windshield and letters left in your actual mailbox. Once your guard is up overall, watch for these tactics:
Don’t respond to any shipping notification regarding a package you will get or one you sent. Instead, use tracking numbers to get updates from the original vendor or shipper. (Delete any suspicious shipping messages and block further communication with its author.)
Ignore the freebies and “You’ve won!” messages this time of year. If it’s too good to be true, it probably is.
Don’t play “Secret Santa” with strangers. The BBB warns that chainmail versions of Secret Santa (in which you give cash or a gift to a stranger as a way of “paying it forward”) crop up year after year. It’s a Ponzi scheme, they say, and scammers get your information to profit off it on the dark web. Bottom line? Only play the game with close friends, coworkers, and family.
Advent calendar scams
Today’s advent calendars are big business, stocking everything from wine to coffee to high-end beauty products. Often, the draw is the bulk-buy value (goods valued at $400!) is more than the calendar price (costs only $75!). However, the BBB says to avoid advent calendars advertised on social media. Too often, these ads don’t deliver the products that were paid for—or calendars arrive stocked nothing like as advertised.
Review the BBB’s Scam Tracker to see if the maker crops up in the self-reported shams user's post. (Search the company’s name with the word “scam” or “fraud.”)
Search the BBB’s registry for the company offering the calendar. Is the group a legit, certified business?
Buy advent calendars off the company’s site rather than through a social media app or ad.
Top tips for staying safe from holiday shopping scams
No matter what type of scams or tactics are out there, you can get ready for the holiday shopping season with a simple tune-up of your best practices.
Pay with credit cards rather than debit cards, checks, or cash, as there’s a better chance you can get your money back if you are scammed.
Update your anti-virus software or update your device to its latest operating system which might include new safety features.
Answer only phone numbers you recognize. Let others roll to voicemail.
Keep track of what you buy online and in-store. Monitor the cash flow in your accounts and charges on your credit cards.
Avoid clicking on links in unfamiliar texts or emails and delete suspicious messages without opening them.
If identity theft does happen, you can have peace of mind knowing Allstate Identity Protection is here to help, even on holidays.
