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Money SmartsDecember 5, 2023
‘Tis the season for giving, and unfortunately, scammers see the holidays as a prime time for stealing your money or personal information. And with many people shopping for gifts online, it pays to be on the lookout for holiday scams and fraudulent websites.
To keep your holidays merry, bright, and safe, don’t let a crook lighten your wallet or steal your cheer. Read on to learn about 10 holiday shopping scams and how to avoid them.
Key Takeaways:
Scam #1: Phishing Through Emails, Websites, or Social Media
Phishing scams prompt you to click on links and give up personal information such as your name, password, and bank account number. And in some cases, you may unknowingly download viruses onto your device. Many phishers pose as legitimate companies, so be especially wary if a company asks you to update your password or account information out of the blue.
Here’s how you can avoid getting caught by holiday phishing scams:
Scam #2: Fraudulent Ads or Sellers on Social Media and in Search Results
Ads on social media can lead to fake sites that resemble a legitimate business. According to a report from the Federal Trade Commission (FTC), one in four people who have been victims of financial scams since 2021 reported that they were scammed on social media. That amounts to a loss of $2.7 billion.
Scams can also occur when shoppers search online for customer service contact information. Ads in search results that appear to show a legitimate company’s customer service contact information can actually be a scammer’s attempt to get you to call them instead.
Be wary of online ads showing unbelievable sales because—you guessed it—they shouldn’t be trusted. Websites with misspelled words or grammatical errors should also raise a red flag.
To avoid getting scammed by fake ads and retailers, you should:
Scam #3: Payment Scams
Shopping for gifts online may be easy and convenient, but it can also open the door to scammers looking to steal your hard-earned cash. Always double-check that the site you’re buying from is secure and legitimate. Don't send money to people you don't know. When in doubt, take your business elsewhere.
Here are some other ways to protect yourself from payment scams:
Scam #4: Fraudulent Charities
Charitable donations are a popular way to give back during the holiday season. Unfortunately, scammers are always looking to take advantage of your generosity. According to the BBB, scammers may impersonate someone in need or set up a fraudulent website for charitable donations.
Here’s how you can make sure your donations are going to a reputable organization:
Scam #5: Fake Holiday Jobs
Many people work seasonal jobs during the holidays to make some extra cash. However, as the BBB points out, not all seasonal jobs are legitimate. Scammers often post fake opportunities to lure you into sending them money or personal information.
According to the BBB, here’s how you can work to avoid holiday job scams:
Scam #6: AI Scams
The rise of artificial intelligence (AI) has given scammers yet another tool to use in their schemes. With the help of AI technology, scammers can use a family member's or friend's voice to trick you into sending them money over the phone, according to Celia Surridge, a BBB spokeswoman.
Here’s how you can avoid this scam, according to the FBI:
Scam #7: Gift Card Scams
Gift card scams most commonly involve a scammer convincing a victim to buy gift cards for a fraudulent purpose. According to the BBB, gift card scams are on the rise, with 50% more people reporting them to the BBB this year than in 2022.
Gift card scammers may impersonate a customer service representative or government official and ask you to resolve a payment issue by purchasing gift cards and sharing the credentials. Sometimes, gift card fraud occurs when crooks tamper with gift cards on store racks and use the information to steal the funds.
Here’s how you can avoid gift card scams:
Scam #8: Stolen Packages and Fraudulent Shipping Notifications
Stolen package scams occur when packages are taken after delivery, usually from a front porch or entrance area. A related scam can happen when scammers send fake shipping notifications to get you to disclose payment or sensitive personal information.
To safeguard your packages, identity, and wallet, you should:
Scam #9: Fake Gift Exchanges and Social Media Giveaways
Gift exchanges or giveaways on social media appear to spread holiday cheer but may spread fraud instead. According to the BBB, these scams can start with an invitation to join a giveaway on social media.
These giveaways will ask you to invite others to the group and send gifts to people you’ve never met with the hope that you'll also receive a gift. It’s usually promised that you'll receive more gifts than you send. However, these groups are scams and pyramid schemes.
Here are some tips from the BBB on how to avoid this scam:
Scam #10: Travel Scams
The holiday season is a time for giving as well as traveling. So, if you plan on traveling for the holidays, be wary of scammers trying to ruin your plans and steal your money. According to the FTC, common travel scams include free vacations that aren’t actually free, fraudulent vacation home rentals, fake charter flights, or fraudulent vacation deals.
To avoid this scam, the FTC recommends that you:
Keeping Your Holidays Merry, Bright, and Fraud-Free
By taking the time to research holiday shopping and travel scams, you will significantly improve your chances of having a happy and safe holiday season. And don’t forget…if it seems too good to be true, it probably is.
Happy Holidays from all of us at GLCU.
Learn more about protecting yourself from fraud and how GLCU can help.