Holiday scams surge: five cons Americans keep falling for and how to spot them

As Americans rush to buy gifts, book travel and spread holiday cheer, scammers are ramping up their efforts. The Internet Crime Complaint Center (IC3) reports that non-payment and non-delivery scams totaled more than $785 million in losses for the year, while credit card fraud added about $199 million. The surge comes as fraudsters target common holiday routines, from package deliveries to social media shopping and travel planning. News outlets and government agencies are urging consumers to verify sources, scrutinize deals and avoid unconventional payment methods.

Here are five holiday scams Americans keep falling for, and how to spot them before they end up with a lump of coal in the wallet.

First, fake phishing shipping notifications. Scammers pose as major carriers or large retailers and claim there is a problem with a delivery. The goal is to prompt a click on a link that asks for login credentials or silently installs malware. Experts warn to double-check sender details and URLs, and to go directly to the retailer or carrier site instead of following prompts in a message. When big retailers raise warnings about phishing activity, it underscores how attackers look to exploit the bustle of the season. The FBI has noted that cyber crooks have already raked in hundreds of millions of dollars by hijacking accounts this year. If a message pressures immediate action or uses slightly off branding, it’s likely a scam.

Second, too-good-to-be-true deals flooding social media. Ads promising designer goods at deep discounts proliferate on platforms like Instagram, TikTok and Facebook. Shoppers may encounter knockoffs, non-delivery, or sites that vanish after checkout. Consumers should verify a seller’s credibility through genuine reviews, check for secure URLs (https), and avoid wiring money or using prepaid gift cards. When shopping from unfamiliar sellers, take extra time to research, confirm authorized dealer status, and use a payment method that allows chargeback or dispute resolution.

Third, social media gift exchanges that give nothing back. Schemes framed as gift exchanges or “Secret Sister” programs lure participants with the promise of receiving gifts in return for sending items to others. In practice, these schemes often collect personal information and may require financial transfers, with many participants left empty-handed. The FBI cautions consumers to review URLs, read reviews and avoid wire transfers or gift cards. The Federal Trade Commission has also described related schemes as mail fraud and warned that participants can risk losing online accounts. If a post asks you to share addresses or send gifts to strangers, it’s best to pass.

Fourth, imposter urgency scams. Fraudsters exploit workplace eagerness or authority figures to press for rapid action. Messages may imitate a boss, coworker, bank official or government agency, demanding immediate payment for an alleged emergency. Payment requests via gift cards, wire transfers or cryptocurrency are common because they are hard to trace. Experts note that scammers often tailor these to recent events and use social media data to map relationships, making the ruse more convincing. When in doubt, pause, verify through official channels and follow standard procedures rather than reacting to pressure.

Fifth, holiday travel scams. Travelers pursuing a dream trip can encounter fake airline sites, bogus hotel bookings and rental platforms that require upfront payments for nonexistent reservations or hidden fees. The Federal Trade Commission recommends avoiding offers that feel too good to be true, steering clear of payments with gift cards or cryptocurrency, and researching a company before booking. When possible, contact the hotel or airline directly through verified contact information and stick to reputable booking sites to reduce the risk of disappointment or loss.

The season’s heightened online and offline activity creates fertile ground for fraud, but consumers can reduce risk with simple steps: verify sources through official channels, review and compare multiple, trusted retailers, and use payment methods that offer protection and recourse. Government and consumer-safety agencies reiterate the importance of staying vigilant, reporting suspicious activity, and keeping records of purchases and communications.

Image-based context can help readers picture the risks and the safeguards they should employ. Below are images illustrating common themes described above.