Fake refund scams surge during holiday season as inbox chaos and data trails widen attacker reach

The holiday shopping season has produced a sharp uptick in fake refund scams, with scammers sending emails and texts that imitate legitimate refunds as consumers juggle orders, cancellations and delivery updates. The surge comes as inboxes swell with promotions, shipping notices and return notices, making it easier for deceptive messages to slip through the cracks and harder to spot fraud amid the rush.

Several factors are fueling the rise. First, many shoppers are already expecting refunds during the season, from items that go out of stock to orders that are canceled or delayed. The seasonal retail environment creates a ripe field for fake messages that mimic common refund cues. Second, Americans are spending more during the holidays, with typical purchases ranging from 200 to 500 dollars and, in some reports, averages well over 600 dollars during Black Friday promotions. That higher spend creates bigger targets for refund-related fraud, where even a plausible amount can seem legitimate in the moment. Third, the inbox is overflowing with messages about promotions, shipping updates, order confirmations and return notices, making it easy to skim past warning signs when dozens of messages arrive in a single hour.

Data brokers amplify the risk by compiling and selling a profile that can include a name, contact information, purchase history and even inferred financial status. Scammers purchase these patterns to tailor messages that look as if they come from retailers a person has actually used. As a result, fake refund emails often feature realistic elements such as a familiar store logo, a plausible order amount and an order number, all designed to lower a recipient’s guard and prompt action.

How the scams operate varies, but the common thread is urgency and realism. In one common playbook, a message appears stating that a refund is ready and includes a link to verify the account. If the recipient clicks, they are taken to a fake retailer page that resembles legitimate sites like Amazon or Walmart and are prompted to log in. The attackers harvest credentials and can then access accounts or steal lender information. A second approach alleges an overcharge and instructs the user to click to receive a refund, asking for debit card details, bank login credentials or PayPal information, sometimes delivering malware. In a phone variant, scammers pose as customer service and claim a refund was issued by mistake, urging the user to send back money or even sharing screens to drain accounts in real time.

These schemes are costly. The Federal Trade Commission has reported impostor scams tied to online shopping as a major threat, contributing hundreds of millions in losses annually. In 2024, impostor scams related to online shopping accounted for about 2.95 billion dollars in losses, underscoring the financial stakes as holiday activities intensify.

Spotting a real refund message can be challenging during the peak season, but several telltale indicators help people distinguish legitimate notices from fraud. Real refund communications do not prompt you to provide banking details or login credentials to receive a refund. Messages that urge quick action, contain a deadline or request you to confirm payment or log in through a link should raise red flags. Look closely at the sender’s address, the exact name used, and whether the message aligns with a retailer you have actually used. If you are unsure, do not click any link. Instead, open a separate browser window and review your order history directly on the retailer’s official site.

To reduce the risk of targeted scams this season, experts advise a three-pronged approach. First, never click links in emails or texts that request personal or financial information. Go directly to the retailer’s official site or app and review your order history there. If you suspect a message is legitimate but want to verify, contact the retailer through a verified channel rather than using any contact information provided in the message itself.

Second, enable multi-factor authentication across all critical accounts. MFA adds a second layer of verification that can prevent unauthorized logins even if a scammer captures a password. This step is a strong safeguard against credential theft that accompanies many phishing schemes.

Third, reduce exposure by limiting how much personal data is accessible to data brokers. Data brokers collect and re-list personal details, including where you shop, how much you spend and recent purchases. Deleting this data manually is technically possible but often impractical; data removal services automate the process. These services identify which broker sites hold your information, send official deletion requests on your behalf, enforce removals, continually monitor for re listings and re request removals as needed. While no service guarantees complete removal from the internet, they can significantly shrink the digital footprint scammers use to personalize attacks. Privacy-focused researchers and practitioners view automated data removal as one of the more practical ways to reduce the odds that attackers can tailor messages to you.

If you are considering this option, recognize that data removal services come with costs and do not guarantee total eradication of data. Still, for many households the potential privacy gains and reduced targeting risk can be worth the investment, especially ahead of peak shopping periods when scammers capitalize on chaos and data availability. Individuals may also review and tighten privacy settings on major services, remove unused accounts, and enable alerts for unusual activity to stay ahead of fraudulent attempts.

Beyond preparation, consumers can take immediate steps to detect and counter fraud in real time. When in doubt, go to the retailer’s official site directly and check your recent orders rather than relying on a link in a message. Scrutinize the sender’s email address and the message content for inconsistencies. Make sure any verification steps take place on trusted domains, not on pages you reach via a link in the message. Never disclose banking details or login credentials through a phone call or a web form that you accessed from an external link. If a message seems suspicious, report it to the retailer and, when appropriate, to consumer protection authorities.

The messaging around this season emphasizes proactive protection. A data hygiene strategy paired with prudent online behavior can reduce exposure to targeted scams that leverage data from brokers and breach records. Consumers should consider a privacy checkup that includes removing or limiting data shared with third parties, enabling MFA on key accounts and reviewing settings on shopping apps to minimize the amount of personal data that is exposed.

As shoppers prepare for the peak days of the season, the advice remains consistent: treat any refund notice with caution, verify through official retailer channels, and take steps to reduce personal data exposure. The holiday period can be financially rewarding, but it also brings heightened risk from scammers who capitalize on the same chaos that makes holiday shopping exciting. If you encounter a suspicious refund email or text, sharing your experience with the retailer and reporting it to appropriate authorities helps warn others and strengthen collective defenses against these pervasive schemes.

In the end, the best defense combines skeptical scrutiny with practical privacy measures. By limiting how scammers can find you, strengthening account protections and validating refund communications through official channels, consumers can reduce the odds of falling for fake refund scams while still enjoying the season’s shopping deals.