Holiday Shopping Scams: What To Watch For

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.

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.

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.

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. 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.

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.