Holiday online shopping scams: How to spot and avoid them

As we head into the rush of the holiday season, it can be easy to pay less attention to certain details like ads promoting excessive discounts, unusual web addresses and text messages about undeliverable packages, which can all be signs of online shopping scams.
Between October and December 2023, $95.2 million in losses from online shopping scams were reported to the Federal Trade Commission by consumers, according to the New York State Department of State’s Division of Consumer Protection.
“The holidays are one of the busiest times of the year for both shoppers and scammers,” Secretary of State Walter T. Mosley said. “While online shopping is a convenient way to purchase gifts and find deals, scammers often use this time as an opportunity to take advantage of consumers and steal their information or their hard-earned money.”
Here’s how to stay safe while shopping online this holiday season.
Fake social media ads and text messages from scammers about packages being undeliverable are the top scams you should be keeping an eye out for this holiday season, according to Director of Information Security and Engagement at the National Cybersecurity Alliance Cliff Steinhauer.
Earn rewards on your spending: Best credit cards for shopping
“People have to look out for these ‘too-good-to-be-true’ kind of offers and they’re getting really hard to spot,” Steinhauer said.
Look for things that aren’t quite right, Steinhauer says, like funky URLs that don’t match the brand scammers are trying to impersonate, misspellings and things that just don’t add up. Here are some additional tips from the state’s Division of Consumer Protection to help you avoid online shopping scams this holiday season:
Carefully review the seller and product before you buy anything, including checking the domain name to see if it differs from the official company name or website and the contact page to ensure the company has a mailing address, working phone number and privacy policy.
Fake social media accounts advertising fake clearance sales are created by scammers using recognizable brand names and logos to try and trick you into clicking on links or giving them money. Always search for reviews first and don’t buy a product from a social media site or link you find on the site — open a new browser and make the purchase through the retailer’s website.
If you’re shopping in an online marketplace, confirm the seller is legitimate before purchasing anything. And if you’re redirected to a third-party site, double check the seller’s policies and reviews, look for any consumer comments and conduct a broad internet search on the seller before you buy.
Black Friday sales:Target’s Black Friday sale is here: What to know about the store hours, top deals
It’s important to read the fine print and the terms of the sale before buying anything so you can understand what you’re purchasing and make sure you’re getting what you want.
One-sided reviews without specific details, which can be both positive and negative, multiple reviews that look very similar and bare user profiles are all indicative of a fake review planted by the scammers themselves. Be sure to look at reviews from a variety of different sources to better understand the product, brand or seller before purchasing anything.
Avoid sellers with vague, missing or limited return or refund policies and make sure you know both who pays the return shipping costs and any time limits for making returns.
The first rule when it comes to safe online payment methods is to use a credit card, Steinhauer says.
“If you have your card stolen through some kind of scam and they’re using your card to make payments that aren’t authorized by you, you can obviously dispute the payments and get your money back,” Steinhauer said. “Can’t do that when you’re sending Bitcoin. You can’t do that when you’re (using) other types of direct types of payments or debit cards.”
Here are some other ways to use safe online payment methods this holiday season from the state’s Division of Consumer Protection:
Holiday savings:Amazon’s Black Friday sale is live! Get the best deals on Kindle, PlayStation, Apple
If you think you’ve been a victim of a scam, it’s a good idea to consider placing a credit freeze, according to Steinhauer, so people can’t open accounts in your name.
And if you realize you’ve paid a scammer, immediately report it to your bank or credit card company, the state’s Division of Consumer Protection says, as the earlier you report the fraud, the more likely you’ll be able to access any available services to help you get your money back.
“The next thing to do is contact your local law enforcement and file a police report,” Steinhauer said. “And then it depends on the information you’ve given up at that point. If you think that an account has been compromised, you want to go reset your password and make sure your multi-factor authentication is turned on.”
Emily Barnes reports on consumer-related issues for the USA TODAY Network’s New York Connect Team, focusing on scam and recall-related topics. Follow her on Twitter and Instagram @byemilybarnes. Get in touch at [email protected].