Online Shopping Safety: How to Outsmart Holiday Scammers in 2025

Between Black Friday sales, flash deals, and endless “free shipping” banners, it’s easy to get swept up in the excitement,  and that’s exactly when scammers strike. Each year, they use the holiday rush to slip in convincing ads, fake websites, and phishing messages disguised as legitimate retailers. A deal that appears to be a quick score can turn into stolen money or a compromised account in mere seconds. Before you hit “Add to Cart,” pause for a moment and make sure you’re really shopping with the company you think you are.

The Most Wonderful, and Risky, Time of the Year

The holidays bring out the best in people, and sometimes the worst. With millions of Americans shopping online, scammers know this is prime time to cash in. While families are focused on finding the perfect gift or catching the best deal, cybercriminals are quietly planning ways to capitalize on the seasonal rush.

According to the Federal Trade Commission, U.S. consumers lost $12.5 billion to fraud in 2024, a 25% jump from 2023. That number reflects not just isolated incidents, but millions of everyday transactions that went wrong: fake websites, counterfeit products, and fraudulent “flash sales” that disappeared the moment payment cleared.

The FBI’s Internet Crime Complaint Center paints an even broader picture, reporting $16.6 billion in internet-enabled crime losses last year, a staggering 33% increase over the previous year. Each statistic represents someone whose holiday joy was replaced with stress, frustration, and hours spent trying to recover what was taken.

And if those numbers seem distant, consider this: 42% of Americans report having had their money or personal information stolen through fraud, according to a survey conducted by the AARP. That’s nearly half the country, proof that scams don’t just happen to the careless or the unlucky. They happen to anyone who lets their guard down for a moment in the middle of the holiday rush.

Even the most cautious shopper can fall for a site that looks legitimate or a text message that seems urgent. Scammers know how to play on excitement, distraction, and goodwill, and during the busiest time of the year, those are emotions nearly everyone feels.

Shopping Scams Top the Naughty List

The holidays bring out not only great deals but also digital impostors. Fraudsters know how to make a scam look legitimate, building polished storefronts and posting eye-catching discounts designed to make you click before you think twice. A few seconds of caution can save you a costly surprise later.

According to the Better Business Bureau, 30.3% of all scams reported in 2024 involved online purchases, and nearly nine in ten victims lost money. That means that for many Americans, the simple act of ordering a gift online can turn into a costly lesson in digital deception.

These scams don’t always come in obvious forms. Some involve cloned versions of real stores; others pop up through social-media ads that redirect you to unknown sites or counterfeit marketplaces. The result is the same: your money is gone, and your package never arrives.

Common red flags include:

• Misspelled domain names (“BestByy” instead of “Best Buy”).
• Missing contact information; no customer-service number or clear return policy.
• Social-media ads with flashy markdowns that push you to “Buy Now” without verifying the seller.

Before making a purchase, take a moment to pause and carefully review your decision. Confirm that the URL begins with “https://,” search for independent reviews, and when in doubt, use a credit card instead of a debit card. Credit cards typically offer stronger fraud protection and make it easier to dispute charges if your “great deal” turns into a digital dud.

The Rise of AI-Powered Holiday Scams

Scammers aren’t just sending sketchy emails anymore; they’re using artificial intelligence to mimic real companies, voice messages, and even customer service chats.

A 2024 McAfee study found that 70% of U.S. shoppers believe AI-driven scams are changing the way they shop online. Fraudsters can generate realistic fake order confirmations or chatbots that sound just like brand representatives.

If you get a suspicious message about a “problem with your order,” go directly to the retailer’s official site instead of clicking the link. And if you’re ever asked to “verify your payment information,” treat it as a red flag.

Delivery Scams: “Your Package Couldn’t Be Delivered”

Phony delivery notifications are now one of the most common holiday scams. Fraudsters pose as major carriers, such as USPS, UPS, or FedEx, and send a text or email claiming that your package cannot be delivered. The message often includes an urgent tone, such as “Action required within 24 hours” or “Confirm your address to avoid return.”

It’s easy to fall for it in the middle of holiday chaos, especially if you’re actually expecting a shipment. Scammers know that during December, most people have multiple orders on the way and won’t think twice before clicking a link to “fix” a delivery problem.

Once you do, you’re taken to a fake site designed to harvest personal data or install malware. Some even mimic official tracking pages so well that victims enter their login or payment information without hesitation.

The best move? Delete the message immediately and check your real tracking numbers through the carrier’s official website or app. If a delivery truly requires action, you’ll find that update there, not in an unsolicited text.

New Scam Alert: The ‘Wrong Address’ Package Scheme

Watch out for a sneakier delivery scam that claims a package was delivered to the wrong address (or still needs rerouting) and asks you to help ship it back using a payment app such as Apple Pay (or similar). Instead of a genuine return, this is a trap: once you initiate the transfer or link your account, scammers may gain access to your payment info, redirect funds, or harvest your credentials. Legitimate shippers or retailers will not ask you to use peer-to-peer payment apps to fix an address error. 

Protecting Your Personal Data

Your personal information is one of the most valuable gifts you own, and one that scammers are eager to steal. Treat it with the same care you’d give to your most expensive purchase. Every login, saved card number, and stored password is a potential doorway into your financial life, so it’s worth taking a few small steps to keep those doors locked.

Here’s how to keep your data safe this holiday season:

• Use strong, unique passwords for every online account, especially retail sites where you store payment information.
• Enable two-factor authentication (2FA) whenever possible; that extra verification step can stop a hacker in their tracks.
• Avoid public Wi-Fi when shopping or banking online. If you must use it, wait to check out until you’re back on a secure network.
• Update your devices before the shopping rush; many updates fix security flaws that scammers exploit.

And if you’re feeling uneasy, you’re not alone. According to a recent study, more than 65% of U.S. consumers say they’re worried about being targeted by online fraud this holiday season. That worry is justified, but it’s also a sign of awareness, and awareness is half the battle. Taking proactive steps now can turn that anxiety into confidence and keep your holidays focused on giving, not recovering.

What to Do if You’re Scammed

Even the savviest shopper can get caught off guard, especially during the holidays when we’re distracted and juggling multiple tasks at once. The most important thing to remember is not to panic. Acting quickly and methodically can make a big difference in protecting your finances and your identity.

Here’s what to do if you suspect you’ve been scammed:

• Contact your bank or credit card issuer immediately. Explain what happened and ask them to freeze or dispute any unauthorized charges. Most credit cards include built-in fraud protection, but time is of the essence.
• Change your passwords on any accounts that may have been compromised, especially email and banking logins. Use strong, unique passwords and enable two-factor authentication if possible.
• Visit the Federal Trade Commission’s guide on what to do if you’ve been scammed. It includes up-to-date steps on reporting scams, protecting your identity, and recovering lost funds.
• File a complaint with the FBI’s Internet Crime Complaint Center. They track and investigate large-scale online scams, and your report contributes valuable evidence.
• Share your experience on the Better Business Bureau’s Scam Tracker. It only takes a minute, and your warning could save someone else from falling into the same trap.

Scammers rely on victims feeling embarrassed or unsure about what to do next, but speaking up helps stop them in their tracks. You’re not alone, and there are real systems in place to help you recover.

And if a scam results in a serious financial loss or ongoing hardship, Morgan & Morgan can step in to help. Our consumer protection attorneys can review your situation, explain your options, and fight to hold fraudulent actors accountable.

Ways We Can Help

At Morgan & Morgan, we believe everyone deserves a safe and stress-free holiday season. If you’ve fallen victim to an online scam that caused serious financial harm, you may have legal options. Our consumer protection attorneys fight for individuals who have been deceived by fraudulent schemes, data breaches, and unfair business practices.

We can review your situation, explain your rights, and help you understand the next steps to take.

The Fee Is Free™ promise means you don’t pay us unless we win. Fill out a free, no-obligation case evaluation today.