Holiday Shopping Scams: What to Watch for Before Black Friday

Black Friday and holiday sales can be a great opportunity to save, but scammers are shopping for opportunities, too. Before you start checking names off your holiday shopping list, here are some common scams to watch for.

1. Fake Shopping Websites

How do fake shopping websites work?

Scammers create websites designed to look like legitimate retailers. They may use familiar logos, product images and professional-looking designs to appear convincing.

The advertisements may promote popular products at steep discounts to encourage you to make a purchase quickly. The Federal Trade Commission recommends researching unfamiliar sellers by searching for the seller's name and terms such as "review," "complaint" or "scam" before purchasing.

Before buying:

• Check the retailer's web address carefully.
• Be cautious of prices dramatically lower than you'd expect.
• Research unfamiliar companies independently.
• Review return, refund and shipping policies.
• Don't rely exclusively on reviews displayed on the seller's own website.

Credit union tip: Instead of clicking an unfamiliar retailer link in a social media ad, consider finding the company's official website independently.

2. Social Media Shopping Scams

That incredible deal appearing in your social feed might deserve a second look.

The Federal Trade Commission specifically warns about scammers using social media ads to impersonate legitimate businesses and promote brand-name products at unusually low prices. [consumer.ftc.gov]

Red flags to watch for include:

• Huge discounts on normally expensive items
• An unfamiliar company selling popular brand-name merchandise
• Pressure to purchase immediately
• A web address that doesn't match the company advertised
• Limited information about returns or customer service

Before buying from a company you've discovered through social media, research it outside the social platform.

3. Phishing Emails and Text Messages

During a busy shopping season, an email saying there's a problem with an order can easily grab your attention.

Scammers use phishing messages and suspicious links to try to obtain personal information such as passwords and financial account information. The FBI recommends not clicking suspicious links or attachments and independently looking up a company's contact information if you receive a message asking you to update account information. [fbi.gov]

Before clicking, ask yourself:

• Did I actually place this order?
• Do I recognize the sender?
• Is the message creating unusual urgency?
• Is it asking me to provide financial or account information?

Rather than using a link in an unexpected message, consider opening the retailer's official app or navigating to its website yourself to check your order.

4. Gift Card Payment Scams

Gift cards make convenient presents, but a request to pay for merchandise using gift cards is a major warning sign. The Federal Trade Commission advises against buying from online sellers that demand payment using gift cards, wire transfers, payment apps or cryptocurrency. [consumer.ftc.gov]

If someone tells you that purchasing gift cards is the only way to pay for a product or resolve an unexpected financial problem, stop before sending anything.

5. Deals That Are Too Good to Be True

Black Friday is all about discounts, which can make identifying fraudulent offers more difficult. But there's a difference between a good sale and a deal that doesn't make sense. The Federal Trade Commission identifies unusually low prices as a potential sign of a scam, particularly when expensive or popular products are advertised well below their typical price. [consumer.ftc.gov]

Before jumping on an incredible deal:

• Compare the price with reputable retailers.
• Research the seller.
• Check the website carefully.
• Read the terms of the sale.
• Don't let a countdown clock or "almost sold out" message rush your decision.

A few extra minutes of research could prevent a much bigger headache later.

What Is the Safest Way to Shop Online?

Quick answer: Research unfamiliar sellers, carefully review websites and payment terms, maintain records of your purchases and use payment methods that provide appropriate consumer protections.

The Federal Trade Commission recommends paying by credit card when possible because consumers may be able to dispute charges in situations such as being charged twice, receiving the wrong or damaged item, or not receiving a purchase. It also recommends keeping receipts and order confirmation numbers. [consumer.ftc.gov]

A few additional habits can strengthen your overall financial security:

• Use unique, strong account passwords.
• Enable multifactor authentication when available.
• Turn on transaction or account alerts.
• Regularly monitor your financial accounts.
• Avoid entering financial information after following an unexpected link.

What Should You Do If You Think You've Been Scammed?

If you notice a suspicious charge or believe you've given financial information to a scammer, don't ignore it.

The Federal Trade Commission recommends first contacting the seller about an online shopping problem. If that doesn't resolve the issue, consumers can contact the company used to make the payment to try to dispute the charge and can report suspected fraud to the FTC. The FBI also advises scam victims to contact their credit card company or financial institution about suspicious charges. [consumer.ftc.gov] [fbi.gov]

Contact your credit union promptly if you see suspicious activity involving one of your accounts.

Shop Smart This Holiday Season

Holiday shopping should be about finding the right gifts, not worrying about whether a deal is legitimate. Before Black Friday arrives, remember three simple rules:

Pause. Verify. Protect.

Pause before responding to an urgent offer. Verify the retailer or message independently. Protect your financial information by using trusted websites and carefully monitoring your accounts.

We're here to help you protect your money throughout the holiday season. If a transaction or message involving your account doesn't look right, contact us using a trusted phone number or through your normal banking channels.

Frequently Asked Questions

What are the most common holiday shopping scams?

Holiday shoppers should watch for fraudulent shopping websites, deceptive social media advertisements, phishing messages and suspicious payment requests. Federal consumer-protection agencies also highlight non-delivery and gift-card-related fraud as holiday concerns. [consumer.ftc.gov], [fbi.gov]

How can I tell if an online store is fake?

Be suspicious of unusually low prices and research unfamiliar sellers before purchasing. The Federal Trade Commission recommends searching the company's name along with words such as "review," "complaint" or "scam." [consumer.ftc.gov]

Is it safe to buy something from a social media ad?

Don't assume an advertisement is legitimate simply because it appears on a social platform. Scammers can use social media advertisements to impersonate real companies and send shoppers to fraudulent websites. Independently research the seller before purchasing. [consumer.ftc.gov]

Should I pay an online seller with a gift card?

No legitimate online seller should require you to pay with a gift card. The Federal Trade Commission identifies demands for payment via gift cards, wire transfers, payment apps or cryptocurrency as a scam warning sign. [consumer.ftc.gov], [consumer.ftc.gov]

What should I do if I see a suspicious charge after holiday shopping?

Contact your financial institution or card issuer promptly. The FBI recommends contacting your credit card company or bank to dispute suspicious charges if you've been scammed.

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