The holiday season is a time for joy, generosity, and celebration. But for scammers, it’s the perfect opportunity to prey on unsuspecting shoppers, travelers, and anyone caught up in the festive rush. As we embrace the spirit of giving, we must remain vigilant and informed to protect our wallets and identities from holiday scams.
Here’s an overview of rampant holiday scams and practical tips for keeping your hard-earned dollar safe this season.
Trending Holiday Scams to Watch Out For
1 Fake Online Stores
The convenience of online shopping has made it a favorite during the holidays, especially with desperate shoppers looking for popular and hard-to-find toys and other holiday gifts. Unfortunately, scammers create fake websites that mimic legitimate retailers. These sites offer deals that seem too good to be true, luring shoppers into providing credit card details or paying for products that never arrive.
Spot the Scam:
- Verify the URL. Look for typos, extra letters, or slight variations in the retailer’s name.
- Check for HTTPS in the address bar, which indicates a secure connection.
- Read reviews of the website. A lack of reviews or overwhelmingly negative ones is a red flag.
2 Shipping Notification Scams
With millions of packages in transit during the holidays, scammers capitalize on this by sending fake shipping notifications, seemingly coming from Amazon and other major retailers and shipping companies. These messages often contain links that install malware on your device or steal personal information.
Spot the Scam:
- Avoid clicking on links in unsolicited emails or texts.
- Cross-check tracking numbers directly on the retailer or courier’s website.
- Be wary of urgent messages asking for personal details or payment.
3 Charity Scams
The season of giving is a prime time for fraudulent charities. Scammers pose as representatives of fake charities, tugging at your heartstrings to solicit donations.
Spot the Scam:
- Get the charity’s exact name and research charities through platforms like Charity Navigator or GuideStar.
- Resist the pressure to donate through unsolicited calls or emails.
- Use the charity’s official website to make your contribution.
4 Holiday Job Scams
Seasonal jobs are in high demand. Scammers exploit this by posting fake job openings. They may request upfront fees for training or steal your personal information under the guise of a background check.
Spot the Scam:
- Be skeptical of job offers that seem overly lucrative for minimal work.
- Never pay upfront fees for a job application or training.
- Verify job listings on the official company website or trusted job boards.
5 Gift Card Scams
Gift cards are a popular holiday gift and a favorite tool for scammers. Fraudsters may tamper with cards in stores or trick victims into paying fake debts with gift cards.
Spot the Scam:
- Inspect gift cards for signs of tampering before purchasing.
- Only buy gift cards from trusted retailers.
- Remember: No legitimate organization will demand payment through gift cards.
6 Social Media Holiday Contests
Who doesn’t love winning free holiday gifts? Scammers create fake contests on social media, requesting personal information or requiring you to pay a fee to claim your “prize.”
Spot the Scam:
- Check the Meta page for authenticity. A verified account will have a blue checkmark.
- Avoid contests that ask for sensitive information or upfront fees.
- Report suspicious contests to the platform.
Tis the Season to Protect Yourself From Holiday Scams
Strengthen Online Security
- Use strong, unique passwords for your accounts.
- Enable two-factor authentication wherever possible.
- Avoid using public Wi-Fi for online shopping or accessing sensitive accounts.
Pay by Credit Card When Possible
- Consider using a credit card instead of a debit card for online purchases. Credit cards often offer better fraud protection.
- Use contactless payment when possible, as it is more secure.
Monitor Your Finances
- Regularly review credit union and credit card statements for unauthorized transactions.
- Set up transaction alerts to catch fraudulent activity early.
Be Cautious with Personal Information
- Never share sensitive information over the phone, email, or text unless you initiate the contact.
- Be skeptical of requests for your Social Security number or financial account details.
- Be careful of sharing too much personal information on social media.
Educate Yourself and Loved Ones
- Share information about holiday scams with family and friends, especially elderly loved ones who are frequent targets.
- Stay updated on emerging scams through trusted news sources or the Federal Trade Commission (FTC).
Trust Your Instincts
- If something feels off or too good to be true, such as a rock bottom price on a popular item, it probably is.
- Take a moment to pause and verify the legitimacy of offers, requests, sites, or links.
- Never buy from a seller who demands payment with gift cards, wire transfers, payment apps, or cryptocurrency.
What to Do If You’re Scammed
If you fall victim to a scam, take immediate action:
- Report the Incident: File a report with your local authorities and the FTC at ReportFraud.ftc.gov.
- Freeze Your Credit: Contact the major credit bureaus (Equifax, Experian, TransUnion) to place a freeze or fraud alert on your credit file. See Benchmark’s Identity Theft Procedures for appropriate contact information.
- Dispute Unauthorized Charges: If you paid with a credit card, work with your credit card provider to reverse fraudulent transactions.
- Change Passwords: Update passwords for any compromised accounts to prevent further damage.
Stay One Step Ahead
The holidays should be a time of joy and connection, not financial stress caused by scammers. By staying informed, practicing caution, and sharing knowledge with others, you can enjoy the festive season without falling victim to holiday fraud.
Take a proactive approach this year—your future self will thank you!
Learn more about scams in our blog, “The Rise of the ‘Crypto Con’: Avoid Falling for Crypto Investment Scams.”