Financial Wellness Series: Avoiding Holiday Scams
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. Here's how to spot common scams and protect yourself this holiday season.
Common Holiday Scams
Charity
Scammers appeal to your emotions with heartrending stories. They often imitate or use slight variations of the names of familiar, trusted organizations to deceive donors. 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.
Gift Card: 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.
Gift Card: 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.
Packages
During the busy holiday season, scammers send fake delivery messages or leave phony “missed delivery” notes to trick you into sharing personal or payment information. Avoid clicking links or calling numbers in unexpected messages – always verify deliveries directly through the shipper’s official website or customer service.
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
1. Enable Two-Factor Authentication (2FA)
Strengthen your account security by using 2FA, making it harder for attackers to gain access to your accounts.
2. Shop Smart – 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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.
9. 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.
10. 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.
No matter what kind of scam it is, act quickly once you realize something’s wrong. If you think you’ve been targeted, here’s what to do:
For most of us, the holidays are full of giving, getting and goodwill. But some bad actors use the holidays to take advantage of people’s generous spirits. Be wary of anyone who asks for money or personal information. Before handing it over, take a breath and talk to a friend, trusted adviser or call the Fraud Watch Network Helpline, which can always help you spot the red flags.
Enjoying Redstone's On The Money series? You can find more articles like this on our Financial Wellness webpage that explores other topics as well as discover more on your own through our partnerships with Zogo and BALANCE.
Membership required. Click here for details.
RFCU does not warrant, guarantee, or insure any product or service offered by Zogo.
Any information provided by BALANCE is the property of the BALANCE Financial Fitness Program. The BALANCE Financial Fitness Program is offered to RFCU members through a partnership between RFCU and BALANCE. RFCU does not warrant, guarantee, or insure any information, products, or services offered by or through BALANCE or any third party.
Zogo, BALANCE and RFCU are not affiliated and are separate entities.