Here's How to Spot and Report Holiday Shopping Scams

People are much more open to spending money during the holidays, and criminals know it. In 2022, there were a total of 12,000 victims who reported a holiday shopping crime to the FBI, with $73 million in total losses.

Getting scammed out of your hard-earned money is bad enough, but it's extra painful when you're celebrating the holidays. Plus, the average American is spending $923 on holiday shopping this year, and losing a chunk of that money to a scammer could be a real blow.

To protect your personal finances this season, here are some of the top holiday scams, according to the FBI, and what you should do if you become a victim.

1. Charity scams

Unfortunately, some scammers like to prey on people's generosity this time of the year, and some set up fake charities to do so. These scams are popular among criminals because they're easy to set up and hard to track.

These fake charities pop up during the holidays, take people's money, and quickly disappear. According to the FBI, criminals often used emails, fake social media accounts, websites, cold calls, and even crowdfunding campaigns to pull off the scam.

One of the best ways to avoid a charity scam is to research the organization thoroughly before you give it any money and be wary of receiving unsolicited requests for money online, via text, or through phone calls.

2. Gift card scams

According to the National Retail Federation, Americans will spend $29.3 billion on gift cards this year, which is probably why they've become a popular holiday shopping scam. Criminals may send unsolicited texts or emails asking you to purchase gift cards, seemingly coming from someone you know.

The FBI says criminals may pretend to be your boss, requesting that a lot of gift cards be purchased for a company event. The victim then buys the cards and sends them to the criminal, making tracking or recovering the loss extremely difficult.

3. Online shopping scams

These scams can take many forms, so it's important to be careful when you receive a text, email, or see an online ad offering you a deal on an item that seems too good to be true. This could be a type of phishing scam that's designed to steal your financial information.

The FBI notes that social media shopping scams are some of the most commonly reported and often involve posts that look like they were shared by friends. The posts may show offers for gift cards or vouchers, but the links take you to sites that collect your financial information.

To avoid this scam, be cautious about clicking on links for holiday deals on social media or a website, and research the company or site before entering your credit card number.

How to report scams if you think you're a victim

If you think you're the victim of a scam, you should first report it to your financial institution. If there is any chance of recovering your funds or halting any additional payments, your financial institution may be able to do so. But remember that the funds may not be recoverable in some cases.

The FBI also recommends that victims of online holiday scams file a complaint with the agency by visiting the Internet Crime Complaint Center at www.ic3.gov. Reporting the scam helps the agency track threats, freeze funds when possible, and warn others of scam trends.

And, as always, the best ways to protect yourself are to be wary of deals that seem too good to be true and to only give your financial information online to companies you trust.