ON THE MONEY > LIBRARY > SECURITY > AVOIDING HOLIDAY SCAMS
Staying Alert During the Holidays
Why is it Important?
The holiday season is full of excitement, but unfortunately, it also brings out scammers eager to take advantage of the hustle and bustle. You’re likely to shop online more than ever, so it’s crucial to stay alert to potential scams targeting your hard-earned cash. From phishing emails to fake holiday deals, these scammers use tactics that can be tricky to spot.
But don’t worry – by staying informed and knowing what red flags to look out for, you can safeguard your personal information and enjoy the season stress-free.
Most Popular Types of Scams
Charity
Scammers appeal to your emotions with heartrending stories. They often imitate or use variations of the names of familiar, trusted organizations to deceive you. They will also pressure you to give immediately or request payment by cash, gift card, or wire transfer because the money is easy to access and difficult to trace.
Online Shopping
Criminals use fake posts and social media campaigns that sometimes impersonate major brands or promote products they never intend to ship. Be careful when you see an item offered at below market price. And be careful if you click on an ad; make sure it directs you to the page you want to be on.
Packages
During the busy holiday season, scammers send fake delivery messages or leave “missed delivery” notes to trick you into sharing information. Avoid clicking links or calling numbers in unexpected messages – always verify deliveries directly through the shipper’s official website or customer service.
Additional Holiday Schemes
Gift Cards
First Approach
This is when criminals steal gift cards in bulk from the racks, collect the information from the card, and return it to the in-store rack for unsuspecting buyers. Once you load money on there, the criminal will drain the money off, even sometimes before you leave the store. It’s safest to buy cards that are kept behind the counter, or directly from the retailer’s site.
Second Approach
Gift card scams start with a call, text, email, or social media message. Only scammers will tell you to buy a gift card and give them the numbers off the back of the card. No matter what they say, that’s a scam. No real business or government agency will ever tell you to buy a gift card to pay them.
Card Declined
You pay for a purchase online and receive a message stating that your card has been declined. The transaction did go through, but the scammer is trying to get more information out of you. Entering another card into the system means that you’ll be charged on both cards.
Travel
Some criminals send scam emails and texts offering deals such as free flights to get you to share credit card information or click on links that download malware. Also be wary of the many spoofed websites pretending to be legitimate hotels, airlines and other travel-related businesses.
How to Protect Yourself
Security
Enable Two-Factor Authentication (2FA) – Strengthen your account security by using 2FA, making it harder for attackers to gain access to your accounts.
Buy Only from Trusted Sources – When shopping online, only buy from well-established and reputable merchants. Make sure a website’s address begins with “https” – the “s” means the connection is secure and helps protect your information.
Monitor Financial Transactions – Regularly check your bank and credit card statements for unauthorized transactions, especially after making online purchases. If you spot anything suspicious, report it immediately.
Don’t Give Out Personal Information – Be cautious about sharing personal information, especially with unsolicited callers. Scammers use many tactics to steal your identity, including pretending to be from a trusted organization.
Never Share a Validation Code – Never share a validation or authentication code you didn’t request, especially if you didn’t initiate the phone call or inquiry. Many account takeovers (especially through online banking) are from sharing codes with fraudsters that allow them to reset passwords and gain access.
Habits
Stay Skeptical of Urgent Requests – Scammers often create a sense of urgency (e.g., “limited-time offer” or “act now or miss out”) to pressure you into making hasty decisions. Always take a moment to research before purchasing.
Be Careful with Social Media and Online Ads – Scammers may promote fake products or services on social media or through paid ads. Avoid oversharing personal information, especially when interacting with unknown entities.
Beware of Gift Card Scams – Never send gift cards to strangers or someone insisting you pay for goods or services with them. This is a classic sign of fraud.
Use Credit Cards for Purchases – When shopping online, use a credit card for its fraud protection. Most credit card companies offer zero liability for unauthorized transactions.
Be Wary of Voice Cloning – Scammers now use AI voice cloning to mimic loved ones. If a call from a friend or family member seems suspicious, hang up and call them back directly to confirm. Also consider using a secret verification word known only to you both that can verify who the caller is.
Think You've Been Scammed? Here's What To Do Next.
Notification
Contact the Merchant – Report the issue immediately to the merchant, who may help resolve the issue or freeze fraudulent accounts.
Alert Your Credit Card Issuer – Contact your credit card company to report fraudulent transactions and request a chargeback or payment reversal.
Place a Fraud Alert
You only need to contact one of the bureaus; they automatically notify the others. Fraud alerts instruct lenders to contact you directly to verify your identity before extending new credit in your name.
Freezing Your Card
Consider freezing your credit report to prevent further fraudulent activity. Lenders won’t issue loans or extend lines of credit because they can’t review your credit history. This makes it more difficult for identity thieves to make purchases or open new accounts in your name. You can “unfreeze” your credit report at your discretion.
Additional Resources
Avoiding Scams
It’s important to recognize the most common scams and take steps to safeguard your money and information.
Understanding Credit Scores
Learn how this three digit number can make or break your chances at landing a loan or being approved for a credit card.
The Basics of Personal Finance
Mastering your personal finances can be empowering, helping you build a secure future to live the life you want.