The Fake Refund Scam: Why Scammers Love Christmas Shoppers

The holiday shopping season should be exciting, but for scammers it’s peak time. And this year, one trick is hitting more inboxes and phones than ever: the fake refund scam. If you’ve ever received an unexpected email or text saying “Your refund has been issued,” “Your payment failed,” or “We owe you money” during November or December, it was no accident.

Scammers know you’re buying more, tracking more packages, and juggling more receipts than any other time of year. That chaos makes fake refund scams incredibly effective and incredibly dangerous.

Here’s why these scams are spreading, how to spot them instantly, and the one thing you can do today to prevent scammers from targeting you in the first place.

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FBI warns email users as holiday scams rise

Why refund scams spike during the holidays

Scammers strike when Americans are distracted, in a hurry, and making dozens of purchases. Black Friday, Cyber ​​Monday, and holiday gift shopping create the perfect storm:

1) You expect legitimate refunds

Christmas shopping means:

• Out of stock items
• Canceled orders
• Packages that arrive late
• Prices changing
• Stores that offer “Best Price Guarantee” rebates.

Scammers know this. When you are already waiting for refund emails, the fake ones blend in perfectly.

2) You’re spending more, which means bigger goals

A study shows that this year Americans will spend 3.6% more than last year on holiday shopping. A purchase of $200 to $500 is completely normal during this season. Other reports show a decrease in spending, but note that people spend, on average, more than $600 during Black Friday promotions alone.

Expenses accumulate, new things arrive, some are returned, and the message “$249 refund issued” doesn’t seem suspicious: it seems plausible. But it is essential that you check if that message is real. Never click on any link without carefully examining the email address, name, and content of the message.

3) Your inbox is overflowing

Have you been eyeing a new appliance? Or a gift for a loved one? Have you saved something in your cart just to see if the price drops? Thanks to Black Friday, your inbox is probably full of:

• Promotional codes
• Offers
• Shipping Updates
• Order confirmations
• Income
• Return notifications.

It’s easy to lose track of your orders and packages amid the influx of emails. And when you’re flipping through more than 200 promotions, scams become harder to spot.

4) They know exactly what you bought

Scammers get your information from data brokers, companies that collect, package and sell your personal information. Your profile can include anything from your name, contact information, to your purchase history and even your financial situation.

In general, data brokers and shopping apps sell patterns, including:

• where do you buy
• how much do you spend
• What categories do you buy?
• Recent purchases
• Your email, phone number and address.

And scammers buy that information to design attractive, personalized attacks. That’s why their fake refund emails often imitate the retailers you actually used.

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How the fake refund scam works

Scammers usually follow one of three manuals:

“Your refund is ready – check your account.” You click a link and you’re directed to what appears to be Amazon, Walmart, UPS, Target, or Best Buy. And when you enter your username, scammers can steal your credentials by tampering with it.

“We overcharged you. Click here to get your refund.” It asks for your debit card number, your banking login, and your PayPal credentials. Or worse: install malware that steals them automatically.

Phone version: “We issued a refund in error.” You receive a call from someone pretending to be Amazon customer service, PayPal support, or even your bank. They say they “refunded too much money” and need you to pay them back the difference. Some even share the screen to empty bank accounts in real time.

These scams cost Americans hundreds of millions of dollars each year. The FTC reports that imposter scams (which are related to online purchases) accounted for the second highest reported losses, resulting in a loss of $2.95 billion in 2024.

What these emails look like so you can spot them quickly

Scammers are becoming more sophisticated. Fake refund messages often include:

• Your correct name
• A real store logo.
• An actual order amount
• A credible order number
• “Click to see refund” buttons
• Deadline pressure such as “respond within 24 hours.”

Here’s the giveaway: No legitimate retailer requires you to enter banking information to receive a refund, ever.

Please note that scams often ask you to:

• Confirm a payment
• Verify personal information
• Sign in via link
• Provide bank details
• Download an invoice.

The easiest way to protect yourself before the Christmas rush

Manually deleting your data from data broker sites is technically possible, but extremely tedious. Some require uploads of government IDs, faxed forms, multiple follow-up requests, and updates every 30 to 90 days because they republish your data.

That’s why most people almost never do it. However, a data removal service automates the entire process. These services:

• Identify which broker sites have your information
• Submit official takedown requests on your behalf
• Force them to delete their data
• Continually monitor and re-request deletions
• Block brokers from re-listing you

While no service can guarantee complete removal of your data from the Internet, a data deletion service is truly a smart choice. They are not cheap, and neither is your privacy. These services do all the work for you by actively monitoring and systematically deleting your personal information from hundreds of websites. It’s what gives me peace of mind and has proven to be the most effective way to delete your personal data from the Internet. By limiting the information available, you reduce the risk of scammers cross-referencing leak data with information they can find on the dark web, making it harder for them to target you.

Check out my top picks for data removal services and get a free scan to find out if your personal information is already available on the web by visiting Cyberguy.com

Get a free scan to find out if your personal information is already available on the web: Cyberguy.com

How to protect yourself this season (3 quick steps)

Remember to follow these simple steps to protect yourself from targeted scams.

1) Never click on refund links in emails or text messages

Go directly to your retailer’s website and check your actual order history. Please verify the sender’s email address and only contact official representatives of the retailer.

2) Activate multi-factor authentication

Set up two-factor authentication (2FA) for all your accounts. With the help of 2FA, you will need to authorize logins via email, text message, or generated PINs. So even if you accidentally enter your password somewhere fake, 2FA can stop the breach.

3) Limit how scammers can find you

This is the part that most people skip and this is why they remain objective. Removing your personal information from data broker sites prevents scammers from accessing your real data. A data deletion service automates and makes the process seamless, which is why I recommend it to my most privacy-conscious readers.

Check out my top picks for data removal services and get a free scan to find out if your personal information is already available on the web by visiting Cyberguy.com.

Kurt’s Key Takeaways

Refund scams explode during the holiday shopping season because scammers rely on two things: chaos in your inbox and selling your personal data behind your back. You can’t stop scammers from sending fake emails, but you can stop them from targeting you specifically. Before the holiday shopping rush hits, take a moment to clean up your data trail. You’ll end up with fewer scams, less risk, and much more peace of mind.

Have you received a suspicious refund email or text message this season? Share your experience so we can help warn others in the comments below. Let us know by writing to us at Cyberguy.com

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