Holiday Season Scams: How Hackers Target Online Shoppers

The holiday season brings joy, celebration, and an overwhelming surge in online shopping. Retailers offer attractive deals, and consumers flock to digital platforms, eager to make purchases for family and friends. However, this festive period also opens the door for a surge in cyber threats. Hackers take advantage of distracted shoppers, unprepared retailers, and increased online activity to carry out scams that can lead to financial loss and identity theft.

According to the FBI’s Internet Crime Complaint Center (IC3), online shopping fraud during the holiday season increases by over 30% compared to the rest of the year. These scams range from fake websites and phishing emails to deceptive shipping notifications and payment fraud. In this blog, we’ll explore the most common types of holiday shopping scams, the red flags you should watch for, and expert tips to keep your information and money safe this season.

Why Hackers Target the Holiday Season

Cybercriminals are strategic in their approach, and for them, the holiday season is a peak opportunity. Here’s why:

1. High Volume of Transactions: With billions of dollars being spent in a short span, there’s a greater chance for fraudulent activity to blend in unnoticed.
   
2. Emotional Buyers: Shoppers are often rushed, stressed, or emotionally driven by gift-giving and deadlines, making them more susceptible to impulsive decisions.
   
3. Overloaded Businesses: Retailers are stretched thin during holiday sales, which may lead to slower fraud detection or customer support delays.
   
4. Increased Digital Advertising: Fake ads disguised as real deals circulate widely across email, social media, and SMS.

According to a 2024 Adobe report, U.S. consumers spent over $311.6 billion during the 2024 holiday season on e-commerce alone². This level of digital engagement creates a perfect cover for scams.

Top Holiday Season Scams to Watch For

1. Phishing Emails and Fake Promotions

Hackers know that holiday shoppers are on the lookout for discounts. Fraudsters send phishing emails that look like they’re from trusted brands—Amazon, Target, or Apple—offering deals too good to miss. These emails often contain malicious links that, once clicked, steal login credentials or install malware on your device.

Warning Signs:

• Deals that sound unrealistic (e.g., 90% off iPhones)
  
• Urgent calls to action: “Your order is delayed—click here”
  
• Email domains that are slightly altered (e.g., amaz0n.com)

2. Fake E-Commerce Stores

Setting up a fake online store has never been easier. Cybercriminals create entire websites that mimic popular brands or appear as “exclusive boutique” stores. Once a payment is made, the product never arrives—or worse, the site collects payment details for identity theft.

Indicators of Fraudulent Stores:

• No HTTPS or security certification
  
• Poor grammar, low-res images, or stolen product photos
  
• No customer service contact number or refund policy

3. Gift Card Scams

Gift cards are a hot item during the holidays. Scammers impersonate coworkers, family members, or managers, requesting urgent gift card purchases. These messages typically come via email or text, asking for the card number and PIN to be sent back quickly.

According to the FTC, Americans lost over $228 million to gift card scams in 2022, making it one of the most reported fraud methods.

4. Fake Shipping Notifications

A common tactic during peak delivery season is fake tracking messages. Victims receive an email or text message from what looks like FedEx or UPS, stating there’s an issue with their shipment, and a link must be clicked to resolve it. That link often leads to phishing pages or malware downloads.

Tactics include:

• Fake “tracking number” links
  
• Scare tactics: “Your package will be returned unless action is taken”
  
• Branding that imitates legitimate carriers

5. Social Media Marketplace Scams

From Facebook Marketplace to Instagram ads, scammers post hard-to-resist deals for electronics, fashion, or home decor. Once payment is sent (often via untraceable methods), the seller disappears.

Tell-tale signs:

• Unverified seller accounts
  
• No reviews or comments are allowed.
  
• Requests for payment via Venmo, Zelle, or wire transfer

How to Identify Red Flags While Shopping

Even the most cautious shoppers can miss subtle hints that something is wrong. Here’s how to protect yourself:

A. Spotting Fake Websites

• Look for HTTPS in the URL.
  
• Check for spelling errors or brand inconsistencies.
  
• Use website lookup tools like WHOIS to verify the domain creation date.

B. Identifying Phishing Emails

• Avoid emails with spelling/grammar issues.
  
• Don’t trust urgent messages that threaten account closure or shipment loss.
  
• Hover over links before clicking to preview the destination URL.

C. Payment-Related Warnings

• Legitimate retailers rarely request wire transfers or gift card payments.
  
• Avoid using debit cards for online purchases; credit cards offer better fraud protection.
  
• Use trusted payment platforms with fraud monitoring.

Expert Tips to Stay Safe While Shopping Online

Protecting yourself from holiday scams doesn’t require advanced knowledge—just a solid plan.

1. Use Strong, Unique Passwords: 

Never reuse passwords across websites. Use a password manager to generate and store secure login credentials.

2. Enable Two-Factor Authentication (2FA)

Activate 2FA on shopping accounts and email for an extra layer of protection.

3. Stick to Official Retailers or Verified Apps

Don’t click on shopping links in emails or ads. Instead, go directly to the retailer’s website or use their official app.

4. Keep Devices and Software Updated

Install the latest security patches on your browser, operating system, and antivirus tools.

5. Monitor Your Bank Accounts and Use Virtual Cards

Check statements frequently for unauthorized charges. Many banks offer single-use card numbers for online shopping.

6. Shop Over Secure Networks

Avoid making purchases on public Wi-Fi. Use a VPN if you’re shopping outside your home network.

What to Do If You’ve Been Scammed

If you suspect you’ve fallen victim to a holiday shopping scam:

• Contact Your Bank or Credit Card Provider Immediately to block transactions.
  
• Change Passwords on affected accounts and any accounts using the same credentials.
  
• Report the Scam to your local cybercrime unit or online platforms like:
  
  • https://www.ic3.gov (FBI Internet Crime Center)
    
  • https://reportfraud.ftc.gov (FTC)
    
• Inform the Platform (Amazon, PayPal, Meta, etc.) if the scam occurred through them.

Prompt action can reduce further damage and support authorities in shutting down fraudulent networks.