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.
“Some of the most common scams we’re seeing in recent seasons include gift card scams, fake shopping sites, and fraudulent deals, discounts, and ads” says Vera, Senior Restoration Manager at Allstate Identity Protection. “Scammers are evolving fast, especially with AI tools that make their schemes look more convincing than ever.”
And this year, shoppers may be hitting the stores earlier than ever, racing to lock in deals before costs climb with inflation and new tariffs lingering. That urgency, while understandable, is exactly what scammers are counting on.
From fake e-commerce sites to too-good-to-be-true offers, fraudsters are adapting quickly to exploit deal-hungry shoppers. Some spin up knockoff websites. Others use puppies to steal money from would-be pet owners.
The good news? A few basic precautions can go a long way in stopping shopping scams before they start.
Holiday shopping scam: Gift-card grinches
Scammers are increasingly targeting gift cards both on the rack and through impersonation tactics. In fact, in response, 11 states passed new laws this year to combat gift card fraud.
In one gift card scam, the Better Business Bureau (BBB) explains, thieves take the 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.
Still, Gift cards make great presents. Just make sure you’re buying them safely with these 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.
If the packaging on a gift card appears to have been tampered with, opt for a new, pristine one.
Be cautious when buying discounted gift cards; all too often, they are blank. Don’t interact with any group that offers “free” gift cards.
Buy prepaid cash cards at a bank or credit union rather than off the rack.
Holiday shopping scam: Fake websites
With today’s AI tools, creating a knockoff website that looks just like a legitimate retailer might take only minutes. While the site’s logos and products may appear authentic, these sham sites exist solely to steal your money and personal information.
The simplest way to steer clear of fake sites? “Double-check the URL and never click links from sketchy ads or emails,” says Vera. Here’s what that looks like in action:
Look for web addresses that begin with “https://” and display a padlock icon.
Type the retailer’s web address directly into your browser instead of clicking a link or relying on autofill.
If you do click a link, double-check the spelling of the company name in the URL. Does it exactly match the real brand?
It’s also smart to be wary of prices that seem too good to be true—because if a deal looks unbelievable, it probably is. When in doubt, call the brand’s customer service line to confirm the site or promotion. Just be sure to use a phone number you find through a trusted search engine, not the potentially fake site.
Holiday shopping scam: Too-good-to-be-true presents
Every year, popular toys, gadgets, and luxury items sell out quickly—and that urgency opens the door for scammers. They may sell counterfeit products or simply take your money without delivering anything.
“Always research sellers before buying,” Vera advises. “Check their reviews and ratings, use secure payment methods, and avoid direct bank transfers.”
Be especially cautious about buying popular toys or other products on third-party sites. If you must, carefully examine the goods before you pay (whether you’re browsing in person or online).
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. In 2024 alone, the FBI’s Internet Crime Complaint Center (IC3) received 49,572 reports of non-delivery scams, including pet scams, resulting in nearly $785.4 million in losses.
If possible, don’t buy a pet you’ve never seen in person, and use your credit card (not a payment app or gift card) to pay. If you are searching for a new furry family member online, keep these tips in mind:
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?
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?
Holiday shopping scam: Fake ads via texts, emails, and social media
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.
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.
“TikTok Shop is also booming, but it’s become a hotspot for fraud,” Vera notes. “Always buy from verified sellers with strong reviews, and never send payments off platform.”
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 site or ad.
Protecting your wallet and identity while shopping online
No matter what scams are out there, Vera says the basics are your best defense. “Pay with credit cards instead of debit or cash, monitor your statements, and keep your software updated.”
Simple steps can make a big difference:
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.
Keep track of what you buy online and in-store. Monitor the cash flow in your accounts and charges on your credit cards.
Update your anti-virus software or update your device to its latest operating system which might include new safety features.
Avoid clicking on links in unfamiliar texts or emails and delete suspicious messages without opening them.
What about shopping in person?
While online scams get most of the spotlight, in-person shopping comes with its own set of risks. Crowded stores, distracted shoppers, and busy checkout lines can create the perfect environment for scammers to strike.
Here’s how to keep your personal information safe while shopping in person:
Use digital wallets like Apple Pay or Google Pay. These encrypt your payment info and reduce the chance of card skimming or data theft.
Don’t leave receipts behind. Some still include partial card numbers or personal details that can be used for fraud.
Watch for shoulder surfers. Identity thieves may try to peek at your screen or card while you’re distracted. Be sure to shield your PIN when entering it at checkout.
Keep your phone locked and avoid connecting to public Wi-Fi while shopping. If you must, use a VPN.
No matter the case, if you’re an Allstate Identity Protection member and the worst occurs, you can have peace of mind knowing we're always here to help—even on holidays.
