FBI Warns of Online Shopping Scams Ahead of Christmas

We live in a winter wonderland where one click can land the season’s latest and greatest toy on your doorstep in 24 hours, batteries included. Online retail has changed the gift shopping game. But with every Christmas miracle comes a thieving Grinch ready to steal all that is merry and bright. Online retail scams are year-round, but the increase in online holiday shopping increases the chance of getting bamboozled.

“Don’t become a scammer’s next victim,” warns the FBI in a cautionary message ahead of the holiday season. The statement talks about the most common scams, in the spirit of saving Christmas and money.

“Scammers can rob you of hard-earned money, personal information, and, at the very least, a festive mood,” says the statement.

The FBI identified the four most common scams in the online retail market — non-delivery scams, non-payment scams, auction fraud and gift card fraud.

Non-delivery scams are self-explanatory; you pay for a good and it never gets delivered. And, no, the post office didn’t lose it. Non-payment scams are the reverse; you ship something and you never get paid. In 2023, non-delivery and non-payment scams cost $309 million in losses.

Auction fraud is a fancy term for false advertising. If you’ve ever ordered a mint-condition collectible and it showed up looking like it had been run over a few times, you’re a victim of auction fraud. Falsely labeling an item as rare, using inaccurate stock images to represent the item, hiding significant damage or creating false positive reviews are all examples of auction fraud. It’s most common on resale sites, so, bidders beware.

Gift card fraud occurs when a seller asks you to pay with a prepaid gift card. The merchant will ask you to purchase a gift card and provide the number and PIN. Then the card is drained and you never get your item.

Eager shoppers are quick to order online, expecting next-day delivery, but haste can leave shoppers vulnerable. Holiday scams are easily avoidable with some “good cybersecurity hygiene”, says the FBI. Look out for phishing scams, using extreme caution when following links on social media, in emails and on websites. Like Saint Nick, check email addresses and URLs twice.

The FBI also recommends reading reviews if purchasing from an unfamiliar company. The extra time can save you money. Never wire money directly to a seller, says the FBI. Using a credit card for all online purchases makes tracking easier. Stay glued to tracking information pending arrival.

"Don't let #holiday excitement cloud your judgment! Always verify the legitimacy of online retailers and be cautious with unsolicited offers," said  the FBI on X.

Internet literacy is a good defense against online scammers, but a study shows tech-savvy generations are more susceptible to falling for internet fraud. A study from the Federal Trade Commission reported losses related to social media scams at $2.7 billion since 2021.

In the event your package does make it to your doorstep, be wary. Dallas is known for package thieves, also known as porch pirates.