BFCM Scams: Retailer’s Guide to Preventing Black Friday & Cyber Monday Fraud

The holiday shopping season is upon us, and that means two things for consumers and retailers alike: massive deals and, unfortunately, cybercriminals lurking in the shadows. Black Friday (BF) and Cyber Monday (CM) have grown from U.S.-centric events into global shopping phenomena, with millions flocking to stores and websites in search of deals.

Over the years, there’s been a major shift from in-store to online shopping, driven by convenience and the rise of ecommerce. While this opens new opportunities for retailers, it also attracts cybercriminals looking to exploit the surge in digital transactions. From phishing emails to fake online stores, the holiday season is prime time for scams, and both businesses and consumers need to stay vigilant.

In this blog post, we’ll dive into the most common Black Friday and Cyber Monday scams, explore their impact on retailers, and share practical strategies to help your business stay protected during the holiday rush.

Common Black Friday and Cyber Monday Scams

The surge in online traffic during BFCM creates the perfect storm for cybercriminals. From fake websites to malicious apps, scams are everywhere.

Here’s a closer look at the most common tactics targeting shoppers and retailers:

Fake Online Stores and Misleading Websites

One of the oldest – and still most effective – scams involves cloned websites or entirely fake online stores. These sites often advertise Black Friday and Cyber Monday deals that seem “too good to be true,” tricking shoppers into entering personal information or payment details. The result? Stolen identities, drained accounts, and a lot of frustration.

Phishing Emails and Short Message Service (SMS) Offers

Holiday-themed phishing campaigns spike dramatically during BFCM. Fraudsters send emails or text messages promising exclusive discounts or early access deals, hoping recipients will click malicious links or download malware.

Social Media and Influencer Scams

Social media is another hotspot for holiday fraud. Fake accounts or compromised influencer profiles often promote bogus discounts, giveaways, or flash sales, directing unsuspecting shoppers to fraudulent websites.

Gift Card Scams

Gift cards are an easy target for scammers. They may offer fake gift card deals or request card numbers as “payment” for nonexistent products or services. Once the scammer has the card information, it’s usually gone for good.

Payment and Delivery Frauds

Fraudsters can manipulate payments or pose as delivery services, intercepting orders or rerouting packages. Even a single compromised transaction can lead to significant financial loss for both businesses and customers.

Tech Support and Customer Service Impersonation

Scammers sometimes impersonate tech support or customer service agents, contacting shoppers directly with claims of account issues or delivery problems. They’ll request sensitive details like passwords or credit card numbers, using urgency and fear to trick victims.

Malicious Paid Ads and Popups

Cybercriminals take advantage of high traffic by embedding malware into seemingly legitimate online ads or popups. Shoppers clicking on these ads can unknowingly download harmful software or be redirected to fake websites.

Fake Mobile Apps

Fraudsters also create apps disguised as official retailer apps. These apps can steal payment information, track user activity, or display fraudulent offers to lure shoppers into sharing sensitive data.

Giveaway Scams

Bogus contests and giveaways promise free products, gift cards, or vouchers – but the real goal is usually data theft or malware installation. These scams can spread quickly through email, social media, or even mobile notifications.

Impact of Scams on Retailers

Scams don’t just hurt consumers – they can have serious and far-reaching consequences for businesses. During the high-stakes holiday shopping season, even a small breach in security can ripple across operations, sales, and brand reputation.

Here’s a closer look at what retailers may face:

Financial Losses

Fraudulent transactions, chargebacks, and lost inventory can add up quickly, sometimes reaching thousands or even millions of dollars. Beyond the immediate cost, handling these losses also consumes time and resources that could be spent growing the business.

Damaged Brand Reputation

Customer trust is fragile, and it erodes fast when shoppers fall victim to scams connected to your brand. Negative experiences can spread quickly online, impacting your reputation and potentially deterring new customers.

Operational Disruptions

Investigating fraud, processing refunds, and responding to security incidents can divert employees from their regular duties. This disruption can slow operations, delay order fulfillment, and reduce overall efficiency.

Legal and Compliance Risks

Retailers that fail to protect customer data or comply with privacy regulations may face legal liabilities, fines, or regulatory scrutiny. Staying compliant is critical not just for trust, but also for avoiding costly penalties.

Inventory and Logistics Disruptions

Fake orders, misrouted shipments, or canceled orders due to fraud can wreak havoc on inventory management. Stock shortages, overstocking, or delivery issues can all result from these disruptions, affecting both revenue and customer satisfaction.

Data Breaches and Theft

Scammers often exploit vulnerabilities to access sensitive customer or business data. Beyond immediate financial impact, data breaches can damage trust, trigger regulatory investigations, and require expensive remediation efforts.

Decline in Conversion & Sales

Website downtime, account takeovers, or scam-related confusion can reduce legitimate sales opportunities. When customers lose confidence in a website’s security, they may abandon their carts or take their business elsewhere.

Fake Store or Brand Imitation Scams

Counterfeit online stores or impersonators can divert both traffic and revenue away from legitimate retailers. These scams not only steal potential sales but also create confusion among customers about which sites are authentic.

Customer Frustration and Churn

When customers experience fraud, they may abandon a brand entirely. Even if no direct financial loss occurs, negative experiences can lead to long-term customer churn.

Reduced Ad Effectiveness

Malicious actors can exploit online advertising campaigns to trick users or redirect traffic, reducing the effectiveness of marketing efforts and diluting your return on ad spend.

Cyberattacks on Business Websites

High-volume traffic during BFCM makes retailer websites a prime target for Distributed Denial-of-Service (DDoS) attacks, malware, or hacking attempts. Any disruption during peak shopping hours can result in lost sales, customer dissatisfaction, and reputational damage.

BFCM Defense Checklist for Retailers

Protecting your business during Black Friday and Cyber Monday requires a multi-layered approach. Cybercriminals are constantly evolving, so combining technological safeguards, operational processes, and customer-facing strategies is essential for keeping both your business and your shoppers safe.

Here’s a practical checklist to help you stay ahead of threats:

1. Technological Defenses (IT/Security Team)

Strong technology measures are the foundation of any anti-fraud strategy:

• Fraud Prevention Stack: Use AI-driven monitoring and anomaly detection to flag suspicious activity before it escalates.
• Multi-Factor Authentication (MFA): Reduce the risk of account takeovers by requiring additional verification for logins.
• Website Security Audit: Regularly scan your website for vulnerabilities and patch any issues promptly.
• Bot Mitigation: Block automated bots that attempt to scrape data or test stolen credentials.

2. Operational & Process Defenses (Operations/Finance Teams)

Internal processes and verification protocols help stop fraud before it impacts your business:

• Clear Policies: Define procedures for order verification, refunds, and handling suspicious activity.
• Verification Protocols: Validate unusual orders or unconventional payment methods.
• Order & Shipping Verification: Confirm high-value or international orders to prevent chargebacks or lost inventory.

3. Customer-Facing & Communication Defenses (Marketing/Customer Service)

Educating and protecting your customers is just as important as securing your systems:

• Customer Education: Share tips on spotting Back Friday scams through email campaigns, social media posts, and website banners.
• Clear Communication: Highlight official channels and promotions so customers can easily identify legitimate offers.
• Secure Your Domains: Register variations of your domain to prevent impersonation and fake websites.

Identifying BFCM Scam Tactics

Being proactive is key to preventing fraud. Retailers who know what to watch for can catch scams early and protect both their business and their customers.

1. Red Flags for Retailers

• Suspicious Orders: Watch for unusually large quantities of items or multiple orders from the same customer using different accounts. These could indicate reselling schemes or automated bot activity.
• Inconsistent Customer Information: Discrepancies between billing and shipping addresses, mismatched phone numbers, or incomplete details can be a warning sign of fraudulent activity.



• Unusual Payment Methods: Prepaid cards, obscure digital wallets, or international payment platforms may signal potential scams. These methods often bypass standard fraud protections.
• Urgent Requests: Fraudsters sometimes pressure staff to bypass normal procedures – such as rush shipping or immediate account changes. High-pressure tactics are often a red flag.

2. Technological Indicators

• Fake Domains: Scammers may create imitation websites using slightly altered URLs or spelling changes to trick customers into entering personal information.
• Impersonation of Trusted Brands: Watch for emails, apps, or ads pretending to be your business or a partner brand. These impersonations can lure customers into phishing schemes or malware downloads.

How Retailers Can Prevent Holiday Fraud

Prevention is always better than cure, and taking proactive measures can save your business time, money, and reputation during the high-volume Black Friday and Cyber Monday period.

1. Ecommerce Security Measures

• Fraud Detection Systems & AI Monitoring: Use tools that analyze transactions in real time to detect anomalies and suspicious behavior before it becomes a problem.
• Strong SSL Certificates & HTTPS: Secure Sockets Layer (SSL) certificates and HyperText Transfer Protocol Secure (HTTPS) encrypt every page of your site, keeping customer data safe and protected during checkout.
• Regular Security Audits: Scan for vulnerabilities, patch systems promptly, and monitor for malware or unusual activity.

2. Customer Verification & Transaction Monitoring

• Multi-Factor Authentication (MFA): Protect customer accounts and reduce the risk of account takeovers.
• ID Verification for High-Value Orders: Confirm the identity of first-time or high-value customers to prevent fraud and chargebacks.
• Transaction Monitoring: Track unusual patterns, such as multiple shipping addresses or rapid repeat orders, to catch suspicious activity early.

3. Educating Customers Proactively

• Awareness Campaigns: Inform shoppers about common Cyber Monday scams via emails, social media, and website notifications before peak shopping days.
• “How to Spot Scams” Banners: Display guidance prominently on your website to help customers recognize phishing attempts and fraudulent offers.
• Clear Communication: Reinforce official channels for promotions and customer support, so shoppers know where to verify deals safely.

4. Working with Fraud Prevention Partners

Fraud Detection Tools and Services

Using the right tools can help catch potential scams before they affect your customers or your bottom line:

• AI-Driven Fraud Monitoring: Detects suspicious patterns using artificial intelligence, flagging threats before they escalate.
• Real-Time Transaction Analysis: Monitors activity as it happens, allowing you to stop fraudulent transactions immediately.
• Anomaly Detection: Identifies unusual behavior, such as irregular orders or unexpected payment methods, that could indicate fraud.
• Automated Alerts: Sends instant notifications to your team when suspicious activity is detected, enabling fast intervention.

Benefits of Collaborating with Cybersecurity Vendors

Partnering with experienced vendors gives your business access to expertise and resources that may not exist in-house:

• Specialized Knowledge: Vendors stay up to date on emerging threats and best practices, helping you proactively protect your business.
• Enhanced Fraud Detection: Advanced tools and AI monitoring can catch threats that might slip past internal teams.
• Streamlined Response: Vendors provide guidance on investigation, mitigation, and compliance, allowing your team to act quickly and efficiently.
• Customer Confidence: Working with trusted cybersecurity experts reassures shoppers that their data and transactions are secure.

Conclusion

Black Friday and Cyber Monday offer huge sales opportunities – but they also attract cybercriminals ready to exploit high volumes of transactions. For retailers, awareness, proactive defenses, and customer education are critical for protecting both your business and your shoppers. By implementing robust technological, operational, and customer-facing safeguards, you can ensure a safe, successful holiday season and maintain trust in your brand long after the deals have ended.