Outsmart the Grinches: Spot and Stop the Holiday Scams
The holiday season is a festive time that often inspires feelings of excitement and generosity. Unfortunately, it’s also a time when scammers come out of the woodwork to try to take advantage. Holiday scams prey on the heightened emotions and increased spending associated with the season, targeting unsuspecting individuals and jeopardizing their finances and emotional well-being.
This guide serves as your compass to help you navigate the festive season securely, armed with the knowledge to unmask holiday scams and safeguard your holiday cheer.
Unveiling the Villains: Common Holiday Scams
Holiday scams come in various forms, each designed to exploit different vulnerabilities in their intended targets. Understanding these common scams can empower you to recognize and avoid their traps, and keep you and your finances safe during this festive time of year.
Phishing Scams
Phishing comes in the form of emails, texts, and calls that all share one identifying marker: they impersonate legitimate companies or charities and try to trick you into sharing personal information or financial details. They often contain malicious links that direct you to phony sites, or attachments that install malware on your computer or device.
Fake Websites
Online stores proliferate throughout the year, but during the holiday season you’ll start to see ads everywhere. If they’re offering unrealistically low prices on popular items, there’s a good chance they’re fraudulent, designed to steal your payment information, infect your device with malware, or just plain cheat you out of your cash.
Gift Card Scams
You should always be wary of any request to be paid in gift cards, whoever it might be. Gift cards are difficult to trace and nearly impossible to recover once the funds have been spent, which makes them a favorite of scammers. A legitimate business will not demand payment via gift cards, and if they do, it’s a red flag.
Charity Scams
Fake organizations soliciting donations may tug at your heartstrings, but always verify their legitimacy before contributing. Visit their website, do a little research, and check out one of the charity verification sites. If they are a legitimate charity, then you can give with a generous heart and peace of mind.
Package Delivery Scams
Fake notifications about missed deliveries or requiring payment are often used to trick you into sharing personal information or downloading malware. These often come in the form of emails or text messages that include links. Clicking the link will either take you to a fake site designed to steal your information or download malicious software to your device. Either way, don’t click it.
Travel Scams
Maybe you received a phone call claiming you won a free trip, even though you don’t remember entering the giveaway. Or a robocall offers you a great deal on a vacation package. Be cautious. Deceptive offers for holiday getaways or vacation rentals may lead to non-existent bookings or hidden charges.
Recognizing the Red Flags: Warning Signs of Holiday Scams
While there are many different types of scams out there, there are certain warning signs that you can watch for. Be on the lookout for any of these red flags that can alert you to potential fraud:
Urgency and Pressure Tactics
Scammers often create a sense of urgency or limited time offers to rush you into making hasty decisions. The more rushed you are, the more likely you are to make a mistake or agree to something you’ll later regret. This is very useful in a scammer’s line of work and is one of their primary tactics.
Unrealistic Offers or Prices
Deals that seem too good to be true often are. Beware of offers that significantly undercut market prices or offer products that other stores can’t get or have trouble keeping in stock. You may receive a counterfeit product or no product at all—and now the scammers have your payment information, too.
Poor Grammar or Misspelled Words
Legitimate businesses typically maintain professional communication standards. While everyone can make a mistake or miss a typo, consistently poor grammar or misspelled words can indicate a scam.
Requests for Personal Information or Financial Details
Never share sensitive information via email, text, or unfamiliar websites. Legitimate businesses have secure methods for collecting such data.
Unsolicited Contact from Unknown Sources
Be wary of emails, texts, or calls from unknown senders or organizations. If you see a product or service you might be interested in, go directly to a web browser and search for it by name. Look for reviews on the Better Business Bureau or other similar sites.
You should also try to find contact information for the business. A legitimate business should offer a phone number and physical address so you can get in touch. They should also have clear shipping and return policies for their products. If you can’t find any of that information, it’s best to steer clear.
Unfamiliar Websites or Payment Methods
Always verify the website’s legitimacy and use secure payment methods like credit cards with fraud protection. Digital wallets like PayPal sometimes offer purchase protections as well. Be wary of websites that only accept peer-to-peer payment apps or require you to sign up for a method you’re unfamiliar with.
Unknown or Suspicious Website URLs and Domains
Carefully examine website URLs for misspellings or unusual characters that may indicate a fake site. Many site impersonators will use addresses that look or sound real, but upon closer inspection are not. You should also look closely at the design quality of the site, as that is often a good indicator of a fake website. You can also copy the website into a search engine along with the word “scam” or “reviews.” This will give you a good indicator of whether or not the site can be trusted.
Unmasking the Deceptions: Frequently Asked Questions
We’ve gathered a list of frequent questions about scams and how to protect yourself. These tips can help you stay safe during the holiday season and throughout the rest of the year.
What are the most common ways scammers target people during the holidays?
Scammers often impersonate legitimate companies, charities, or government agencies to gain trust. They may also use phishing emails, fake websites, or social media scams to target unsuspecting individuals.
How can I protect my online accounts from holiday scams?
Use strong passwords, enable two-factor authentication, and be cautious of clicking on suspicious links or downloading attachments from unknown senders. If you have any doubt about the legitimacy of a website, it’s best to just take your business elsewhere.
What should I do if I receive a suspicious email or text message?
Do not click on links or open attachments. Report the message as spam or phishing and delete it immediately.
What are some safe ways to donate to charities during the holidays?
Research charities thoroughly before donating. Look for organizations with a proven track record and transparency in their operations. You can also use a charity verifier like Charity Watch or Charity Navigator to see if the organization is trustworthy.
How can I tell if a website is legitimate?
Check the website’s URL for misspellings or unusual characters. Look for security certificates (HTTPS) and read customer reviews to assess the website’s reputation. You can also do a search with the website and the word “scam” or “reviews” to see what others have said about the site.
Is it safe to shop online with new retailers?
Research the retailer’s reputation before making a purchase. Check customer reviews and ensure the website uses secure payment methods. The Better Business Bureau is a great resource to see if a company has had any complaints or reports of fraudulent activity.
How can I protect my personal information while shopping?
Use a credit card with fraud protection and be cautious about sharing personal information online. Avoid using public Wi-Fi networks for online shopping. It’s best to do you holiday shopping from your home network or over cellular data.
What are my options if I fall victim to a scam?
Contact us or your credit card company immediately to report the fraud. File a complaint with the Federal Trade Commission (FTC) and other relevant authorities.
Building Your Defenses: Essential Tips for Staying Safe
Empower yourself with these actionable tips to protect yourself from holiday scams:
- Shop from trusted websites and retailers with a proven track record of customer satisfaction.
- Be cautious of unsolicited offers and deals: If an offer seems too good to be true, it probably is.
- Verify the legitimacy of charities before donating.
- Use strong passwords and enable two-factor authentication for added security on your accounts.
- Never share personal information over email or text.
- Be wary of clicking on suspicious links or attachments from unknown senders.
- Monitor your bank statements regularly for suspicious activity and report any issues right away.
- Report any suspected scams to the authorities, such as the Federal Trade Commission (FTC) or the Better Business Bureau (BBB).
Staying Vigilant: Resources and Support
If you’re looking for more information, there are a variety of resources available online. Refer to these reputable organizations for assistance:
- Federal Trade Commission (FTC): https://www.ftc.gov
- Better Business Bureau (BBB): https://www.bbb.org
- Consumer Financial Protection Bureau (CFPB): https://www.consumerfinance.gov
- Online Safety Alliance (OSA): https://www.staysafeonline.org
Safeguarding Your Holiday Cheer
The holidays are a time of festive cheer with family and friends, but also a primetime for scammers. By being aware of common scams and their methods, you can safeguard your personal information, finances, and the spirit of the season.
This article was originally shared via our education partner, MoneyIQ.
