Holiday Shopping Scams: 6 FTC Warning Signs Before You Pay
Six FTC warning signs of fake holiday stores, from very low prices to odd payment demands, and what to check before you pay.
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Holiday shopping brings out fake stores along with real sales. The Federal Trade Commission (FTC) says scammers build sites that look like legitimate retailers, advertise products at unbelievably low prices, and then send a different item or nothing at all. The six warning signs below come from the FTC's own holiday shopping advice, and each one takes less than a minute to check before you pay.
Summary
The FTC's advice is consistent across its alerts: unusually low prices are a sign of a scam, social media ads can impersonate real companies with stolen photos and logos, and fake delivery messages try to pull you to phishing pages. Before buying from an unfamiliar seller, search the seller's name plus "review," "complaint," or "scam," and read the terms of sale, including the refund policy, return shipping, and restocking fees. Pay by credit card whenever possible, because credit cards offer more protections and a way to dispute charges. Never pay an online seller with gift cards, wire transfers, payment apps, or cryptocurrency: the FTC states that only scammers tell you to pay that way. If something goes wrong, contact the seller first, then the payment company to dispute the charge, and report the problem at ReportFraud.ftc.gov.
The Six Warning Signs at a Glance
| Warning sign | What it looks like | What to do |
|---|---|---|
| Price far below normal | An expensive item at a very low price | Do not click the ad; go to the real store site directly |
| Ad impersonates a real brand | Stolen photos and logos on social media | Open the company site yourself, not through the ad |
| Fake delivery message | A text or email about a package you did not expect | Do not tap the link; check tracking on the retailer site |
| Seller cannot be researched | No reviews, complaints, or history found | Search the name plus review, complaint, or scam |
| Vague sale terms | No refund policy, return shipping, or fees stated | Read the terms before paying |
| Odd payment demanded | Gift cards, wire transfer, payment app, or crypto | Do not pay; only scammers ask for this |
The table is the whole check in one place. Any single row can be a reason to pause, and two together are a good reason to stop the purchase. The sections below explain each sign.
Sign 1: A price far below normal
Unusually low prices are a sign of a scam. The FTC's advice is direct: do not click on ads that advertise a product at a very low price when you know it is usually expensive. The link can lead to a scam site that takes your money and sends something that looks different from what was advertised, or nothing at all. A real sale cuts a price; a scam price ignores what the product normally costs.
Sign 2: An ad that impersonates a real brand
Scammers run ads on social media showing expensive products like electric scooters, designer bags, and popular toys at unbelievably low prices. Many of these sites use photos and logos stolen from legitimate businesses. If you see an ad for a familiar company but are not sure it is real, go to the company's website using an address you know is official, not the link in the ad.
Sign 3: A fake delivery message
During the holidays you expect more deliveries, and scammers count on that. The FTC says scammers send fake delivery notifications by email and text, hoping you will click. They often claim you missed a delivery or need to update an address. The FTC advises against clicking links in messages about an unexpected delivery. If the message seems legitimate, contact the shipping company using a phone number or website you already know is real, or look up the order's status on the retailer's site.
Sign 4: A seller you cannot research
Before you buy from an unfamiliar seller, the FTC advises searching online for the name of the seller plus words like "review," "complaint," or "scam," and reading what others say about their experience. A real store usually leaves a trail of reviews and history. If the search turns up nothing at all, treat that as a reason for extra caution rather than as a clean result.
Sign 5: Vague or missing sale terms
The FTC advises checking the terms of the sale before paying: the price, other charges, the refund policy, who pays for return shipping, and whether there is a restocking fee. A legitimate store states these plainly. If you cannot find the terms, or the terms page is empty or generic, consider shopping elsewhere.
Sign 6: Payment demanded by gift card, wire, app, or crypto
Never buy from online sellers who demand payment by gift cards, wire transfers, payment apps, or cryptocurrency. The FTC states that only scammers tell you to pay that way. If the checkout offers only one of these methods, close the page.
Pay by Credit Card When You Can
The FTC advises paying by credit card whenever possible. Credit cards offer more protections and give you the option to dispute charges if what you get is not what you ordered, or if you get nothing at all. Make the payment method part of the purchase decision from the start, not an afterthought.
If Something Goes Wrong
The FTC's order of steps is: first contact the seller and try to work it out. If that does not work, contact the company you used to make the payment and dispute the charges. If they cannot help, tell the FTC at ReportFraud.ftc.gov. Keep every receipt, message, and screenshot, and check your card issuer's rules for how long you have to dispute a charge.
Choosing Order
- Before you click, check the price against what the item normally costs and check whether the ad comes from the real brand.
- Before you pay, research the seller, read the sale terms, and confirm the checkout takes a credit card.
- After you pay, keep the receipt and tracking, and if the item never arrives or looks wrong, dispute the charge and report it.
Before You Pay
- Search the seller's name plus "review," "complaint," or "scam" before buying from an unfamiliar store.
- Read the refund policy, return shipping, and restocking fee before you enter payment details.
- Pay by credit card when possible so you can dispute a charge.
- Do not pay with gift cards, wire transfers, payment apps, or cryptocurrency.
- Do not tap delivery links in unexpected texts or emails; check tracking on the retailer's site instead.
- If a deal looks too good to be true, pause and verify before buying.
This article is for general information, not financial advice.