As the holiday shopping season approaches, cybercriminals are gearing up for their busiest time of year. Holiday scams surge by as much as 127% during November and December, according to TransUnion. In 2020, the FBI’s Internet Crime Complaint Center (IC3) reported over 17,000 non-delivery scam complaints alone during the holiday season, resulting in losses exceeding $53 million. By 2023, that number had shot to $281 million. Fraud is on the rise, and with Black Friday being the riskiest day of the year, you should be on high alert.
According to management consulting firm Bain & Company, Americans are expected to spend more than $75 billion in 2024 during the Black Friday and Cyber Monday weekend alone. This combination of high spending, time pressure, and the search for deals creates an environment where scammers can effectively target shoppers who might otherwise be more cautious with their personal information and finances. We are here to help make sure you can recognize these online scams and stay out of harm’s way.
Major Types of Black Friday and Holiday Scams
The holidays create the perfect conditions for fraudsters to target shoppers who may be blinded by deals or the excitement of the season. Seeing through these scams is the first step toward protecting yourself and your wallet during this vulnerable time. Below are the most common scams to watch for this season.
Fake Online Stores
Scammers can create convincing copies of legitimate retail websites, often using similar domain names and copied logos. These sites advertise popular items at extremely low prices to attract shoppers, but once the payment information is submitted, the scammer steals the customer’s financial data, and the products are never shipped. In more sophisticated operations, criminals may even send confirmation emails and fake tracking numbers, so it takes longer for customers to discover the scam.
What to Look Out For
Watch for websites with unusual domains, poor grammar, limited contact information, and prices that seem too good to be true. Be sure to check the URL carefully — scammers often use slight misspellings or add words like “official” or “store” to legitimate brand names. Common red flags include:
- Domains ending in unusual extensions like “.store” or “.shop”
- Hyphens are used to create excessively long, confusing URLs or mimic common shopping sites, like “google-com.net” or “amazon-com”
- Missing or incomplete About Us pages
- No physical address or phone number
- Limited payment options
- Recently registered domain names
The Internet Corporation for Assigned Names and Numbers (ICANN) is a nonprofit that allows you to look up exactly when a domain was registered through their online database.
Deceptive Ad Campaigns
Bad actors are known for creating misleading advertisements featuring nonexistent deals or knockoff products. These ads often appear on social media and search engines, designed to drive traffic to fraudulent websites or collect personal information through fake forms. In fact, according to the Federal Trade Commission (FTC), 44% of reported fraud on social media was tied to online shopping. Modern scammers know how to reach specific demographics and often create a sense of urgency with countdown timers and limited-quantity warnings.
What to Look Out For
Be wary of ads promoting extreme discounts, especially on high-demand items. Research the seller independently rather than clicking directly through ads. Check whether these offers are comparable to trustworthy retailers — or are similar to reported scams. Pay particular attention to:
- Unrealistic discounts on name brands
- Ads claiming exclusive access to popular products
- Marketing language that creates excessive urgency
- Requests for unusual payment methods
- Limited or nonexistent customer service options
For example, you could see an ad that makes it appear as if a streaming service is offering a significant discount. Instead of clicking on the ad, it’s safer to visit the streaming service’s website and check for any deals.
Phishing Email and Text Message Scams
During the holiday season, scammers often create elaborate text and email campaigns that mimic major retailers. These notifications often claim there are issues with your orders or offer fake deals and discounts. Such messages can contain malicious links that either install malware or lead to fake login pages that steal credentials. If your passwords or sensitive information are exposed, you are vulnerable to identity theft. Scammers can access your bank account and make unauthorized transactions or wire transfers.
What to Look Out For
Closely look at the sender’s address and hover over the links before clicking. Legitimate retailers won’t ask for login credentials or financial information via email. Watch for common phishing tactics like urgent language or threats about closing your account. Key warning signs include:
- Generic greetings instead of your name
- Pressure to act quickly
- Requests to verify account information
- Poor spelling or grammar
- Mismatched or suspicious sender addresses
- Poor layout and email design
Fake (or Price Gouging) Third-Party Sellers
Scammers can pose as legitimate marketplace sellers, listing items at deceptively low prices. However, these products will either never ship, or they’ll send counterfeit goods. These operations often use stolen images and descriptions from authentic listings, making them particularly difficult to identify.
Some legitimate sellers also dramatically inflate prices on products that they know are popular. This is called “price gouging” and is illegal in 37 states. Complaints are typically logged through the office of your state’s Attorney General.
What to Look Out For
Review seller profiles, including registration dates and customer feedback. Be suspicious of new accounts with limited history as a seller, especially if they’re offering hard-to-find items at discount prices. Keep an eye out for:
- New accounts with sparse history
- Low-quality product photos
- Inconsistency in product descriptions and formatting
- Unlisted shipping location and long estimated delivery times
- Unreasonable price differences with competitors
Non-Delivery and Non-Payment Scams
Fraudsters often collect payment for items they never intend to ship, or they’ll sell counterfeit tracking numbers to appear legitimate. Some scammers also pose as buyers, sending fake payment confirmations to trick sellers, so if you yourself are a business owner, you’ll want to be especially cautious. These scams often target popular holiday items that are sold out elsewhere, exploiting desperate shoppers looking for specific gifts.
What to Look Out For
Use tracking verification tools to confirm shipping information for every purchase and expected package delivery. Never accept payment outside of marketplace platforms, and be wary of buyers requesting unusual payment methods. Watch for:
- Tracking numbers that don’t register with carriers
- Sellers pushing for off-platform transactions
- Unusual shipping timeframes or locations
- Requests for additional fees after purchase
- Communication that becomes evasive after payment
You can see if a tracking number is legitimate by comparing it against several major carriers at once through platforms like Parcels.
Fake Social Media Ads and Promotions
As mentioned, online shopping accounts for nearly half of all registered fraud cases on social media. Scammers can create convincing social media campaigns advertising products they do not have or deals they do not intend to keep. These ads often use stolen images and fake reviews to appear legitimate. If you’re unsure, use a reverse image search to find out where the image actually originated.
What to Look Out For
Research unfamiliar brands extensively before purchasing. Check for authentic social media verification badges and read comments for warnings from other users. Stay away from accounts with:
- Spotty activity or way too much (could signify a bot)
- Low engagement from followers
- Inconsistent or weak presence across platforms
- Lack of professional website links
- Comments and replies that seem to be copied and pasted
Let’s say you see a streaming deal on Instagram. Before you click on any links, confirm whether the profile you’re looking at is real. Be cautious about social media sites that no longer use verification badges to help users easily identify legitimate profiles.
Gift Card Scams
Gift card scams exist in three primary forms. The first is when scammers physically manipulate gift card displays in stores to steal codes. Once a card is purchased, the bad actor can immediately drain the money that was loaded onto it. Secondly, cybercriminals use bots to figure out gift card codes, similar to a brute force cyberattack. Lastly, scammers may contact you via email or phone call and try to get you to purchase a card yourself and give them the code. The Federal Trade Commission has outlined the common tactics fraudsters use in this circumstance and how you can file a report.
What to Look Out For
Only purchase gift cards directly from authorized retailers. Never share gift card numbers, and inspect physical cards for tampering before purchase, especially the scratch-off ink that covers the PIN. Watch out for:
- Signs of physical tampering on cards
- Exposed PIN numbers
- Requests for gift card payments
- “Free” gift card offers requiring personal information
- Unsolicited calls about gift card activation
Contact the gift card company as soon as you notice something is wrong. If the money has been frozen or flagged, they may be able to return it to you. Then, as mentioned, report the incident to the FTC.
How to Shop Safely During Black Friday and the Holidays
Protecting yourself while hunting for holiday deals requires a high level of attention and smart shopping practices. Here are some tips to stay safe:
Stick to Trusted Retailers
When shopping online, go directly to well-known store websites by typing their addresses into your browser instead of using links from ads or social media. If you’re using online marketplaces, choose sellers with good reviews and long histories. Keep in mind that real stores don’t usually pressure you to buy something right away. To stay safe, make a list of your trusted stores and save their actual websites so you don’t accidentally visit fake ones.
Verify Website Authenticity
Before entering any payment or personal info, check that the website is secure. You should see “https://” and a padlock icon in the browser bar (the “S” means secure). Also, double-check for weird spellings or fake domain names that look similar to real stores.
Use Credit Cards or Secure Payment Platforms
When buying things online, credit cards offer more protection if something goes wrong than debit cards. You can also use services like PayPal or digital wallets, which add extra security. Don’t ever wire money or send cash. To stay extra safe, set up alerts on your credit card so you can catch any unauthorized charges right away.
Beware of Suspicious Emails and Texts
Avoid clicking on links in unexpected messages about shopping, especially if they come from pop-up ads, random emails, or Instagram accounts you don’t follow. Always go directly to the seller’s website to check any deals or order updates. Scammers often make their messages look very real, so be careful. A good trick is to use a separate email just for shopping — it can make it easier to spot legit messages from actual stores.
Find More Resources To Protect Yourself With StreamSafely
At StreamSafely, we do our best to help you stay safe all year long — not just during the holidays. When it comes to streaming, we’ve made it our mission to document known illegal sites and provide best practices, including password management and cybersecurity tips.
When it comes to holiday scams and cybersecurity risks, it’s always better to be safe than sorry. After all, the holiday season should be about giving and celebrating, not worrying about fraud. By staying informed, you can shop confidently and safely during Black Friday and throughout the holiday season.
Remember, if a deal seems too good to be true, it probably is. Take your time, do your research, and trust your instincts. While the excitement of finding the perfect gift at an amazing price can be tempting, your financial security and personal information are worth more than any holiday bargain. Happy holiday shopping!
