As the holiday shopping season ramps up, consumers increasingly turn to online platforms for their gift purchases, seeking convenience and variety. However, this shift also heightens the risk of encountering scams.
According to McAfee's 2024 Global Holiday Shopping Scams Study, 70% of American shoppers now believe that AI-powered scams, including deepfakes, significantly impact their online shopping behaviors. Alarmingly, 21% of Americans have unknowingly purchased fake products endorsed by deepfake celebrities, with the figure rising to 33% among Gen Z and Millennials.
Common tactics include fake missed delivery notifications (59%), phony purchase alerts (44%), and fake credit card issue messages (37%). With 89% of Americans planning to shop online this holiday season, the need for vigilance is more critical than ever. Here are six prevalent holiday shopping scams and tips on how to avoid falling victim to them.
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- Be cautious with gift cards and only purchase from reputable sources.
- Verify the authenticity of discounted goods before buying.
- Watch out for fraudulent e-cards that may contain malicious links.
- Use coupon sites that don’t require personal information.
- Be aware of potential scams when using the ‘buy online, pick up in-store’ option.
- Order early to avoid delivery issues and use secure payment methods.
1. The Gift Card Scam
Gift cards remain a popular gift choice but are also prime targets for scammers. Fraudsters exploit the high demand for gift cards, often selling fake or already-used cards through unofficial channels. According to the Federal Trade Commission (FTC), nearly one in three Americans have been targeted by a gift card scam. To protect yourself, only purchase gift cards from trusted retailers and consider using platforms with a clear guarantee policy. For more details on how to stay safe, visit the FTC's guide on avoiding gift card scams.
2. The Counterfeit Goods Scam
Discounts on high-end brands can be enticing, but they often come with a catch. Counterfeit goods are rampant during the holiday season, especially on lesser-known websites. Almost 7 in 10 consumers were misled into purchasing counterfeit items online at least once in the past year, according to a 2023 study from Michigan State University. Always research the seller and ensure you are buying from a reputable source to avoid receiving knock-offs. For more information, see the NPR article on how to avoid counterfeit products and monitor sites like Trustworthy Shopping for additional tips.
3. The E-Holiday Card Scam
Fraudulent digital holiday cards are making the rounds, tricking recipients into clicking malicious links. These emails may appear legitimate but often come from suspicious addresses. The FBI advises looking for signs of fraud, such as generic greetings or mismatched URLs, before clicking any links. Learn more about spotting phishing attempts from the Massachusetts government’s tips on protecting yourself from phishing scams.
4. The Corrupt Coupon Scam
While coupon websites can save money, they can also be a breeding ground for scams. Be wary of sites that require personal information to access coupons. Legitimate coupon sites typically do not ask for sensitive data, so it’s best to steer clear if a site does. Check out reviews and recommendations from reputable sources like US News Money, which provides a list of trusted coupon websites.
5. The ‘Buy Online, Pick Up’ In Store Scam
The convenience of buying online and picking up in-store can be exploited by criminals using fake IDs and stolen credit cards. They can order and pick items up online before the retailer realizes the fraud. Retailers should implement strict identification checks for in-store pickups to mitigate this risk; consumers can help by verifying the retailer’s policies on secure transactions.
6. The Not Delivered In Time (Or At All) Scam
As the holidays approach, the pressure to receive gifts on time increases, making consumers vulnerable to scams. Some vendors may falsely claim that items are in stock and can be delivered by a certain date. To avoid disappointment, order early and ensure you are purchasing from reputable sellers.
Always opt for secure payment methods like credit cards or PayPal, which offer better protection against fraud. The FBI warns consumers to be particularly cautious of deals that seem too good to be true during the holiday season, as these are often too good to be true.
