5 Ways to Protect Your Wallet From Holiday Shopping Fraud

I'm betting that you're deep into the weeds of holiday shopping right now, alongside many Americans. It's unfortunate, but the holiday season brings many opportunities for fraud and scams that result in lost money and plenty of headaches for shoppers.

According to data from CivicScience, 87% of us intend to do at least some of our holiday shopping online this year, up from 84% in 2022, so it's more important than ever that you know how to avoid falling victim to holiday shopping fraud. If you stroll into your local Costco warehouse to buy gifts, the whole process is pretty straightforward. But if you shop online, especially with retailers you've never bought from before, things can get hairy.

Here are a few moves that can keep you from getting ripped off by thieves and scammers.

1. Do your research

On your hunt for the perfect gift, you may find yourself in some corners of the web you've never visited before. Wouldn't it be great to know ahead of time whether a website and its products are legitimate before you make a purchase? This is where doing your research comes in.

I don't worry much when I buy from Amazon, Target, or another major retailer, but before I provide payment information to a site I've never used before, I type "(website or company name) scam" or "(website or company name) review" into Google, and see what comes up. If you see red flags in the form of complaints, you'll know not to buy from that site.

2. Use a credit card to make purchases

Hands down, the safest way to make your holiday purchases, be they online or in person, is with a credit card. Credit cards are a very secure way to pay because they come with robust fraud protections, and the top credit card issuers have exemplary customer service you can lean on whenever there's a problem with your card -- or you notice a suspicious charge you didn't make.

Plus, credit cards aren't directly linked to your checking account, which means that if you make a purchase with one that you don't end up receiving, you're not out any of your own money until you pay your credit card bill. If you don't receive the item you bought, or you receive the wrong item altogether, you can file a dispute with your credit card company.

3. Be cautious about social media ads

If you use social media, you've probably seen targeted ads for products that are likely to appeal to you based on your age, location, and other demographic information collected by that social media website (try not to think about how creepy this is; it'll just keep you up at night). If a given ad appeals to you, you might click the link, proceed to what looks like a legitimate e-commerce website, and provide your credit card information.

If you actually receive the product you ordered (not a guarantee), it might look nothing like it's supposed to. In some cases, the images you saw might even be entirely fake. So if your favorite social media app serves up an ad for something that looks like the perfect gift, see if you can find it on another part of the web (and ideally, offered by a seller you've heard of). Play it safe, and don't buy it via social media.

4. Beware of very cheap prices

You know the old adage about if something seems too good to be true, it probably is? Well, this is never more accurate than when holiday shopping. If you're looking online for the best price on a hot holiday item, you should be suspicious if you see that toy or video game available for far less money on one website than on others.

And if you've never heard of that retailer, it's best to avoid this "deal," as you might find yourself receiving a counterfeit version of the item you ordered -- or perhaps the item will never arrive at all.

5. Track your packages and secure your porch

This is the time of year when thieves can have a field day grabbing packages off your front steps. As such, be on the lookout for these "porch pirates" as you order holiday gifts. There are a few ways to keep your items from being stolen, thankfully. If you work from an office that has an entrance for delivery people, and it's okay with your company, make work your delivery address. I used this technique for years before I switched to remote work.

Now that I generally work from home, I have packages sent there. To cope with the fact that I live in a second-floor apartment, I sign up for email and text tracking alerts for packages. That way, I get pinged when a box hits my porch, and I can immediately retrieve it. Doorbell or other home security cameras can also be an asset for ensuring your packages aren't stolen.

The holiday season can be a boon for thieves and scammers of all kinds. Lean on these tips to steer clear of them and their tricks.