As the holiday season approaches, it’s a time for celebration, gift-giving, and joy—but it’s also a prime opportunity for scammers to take advantage of unsuspecting consumers.
With more people shopping online, traveling,g and donating to charity, fraudsters find new ways to trick individuals out of their money.
The FBI recently warned consumers about online scams as the holiday shopping season begins.
“Don’t let #holiday excitement cloud your judgment! Always verify the legitimacy of online retailers and be cautious with unsolicited offers,” the FBI said in a post on X.
A 2023 report from the Internet Crime Complaint Center found that non-payment and non-delivery scams cost consumers more than $309 million last year and credit card fraud resulted in an additional $173 million in losses.
The FBI provides ways for consumers to protect themselves against scams, such as refraining from clicking suspicious links, being discerning with password change requests, knowing who they are purchasing items from online, being careful with payment methods, and tracking packages and addresses of cardholders.
Experts warn you to be extra vigilant this year to avoid falling victim to these holiday scams.
1. Online Shopping Scams
The rise in online shopping has led to an increase in fraudulent websites, especially those offering “too good to be true” deals. Scammers often set up fake e-commerce sites that look legitimate at first glance but disappear once they’ve collected payment information. To avoid these scams, shoppers should stick to well-known websites, ensure the URL starts with “https://” (indicating a secure site), and use credit cards instead of debit cards for added protection.
2. Gift Card Scams
Gift cards are a favorite tool for scammers, especially during the holidays. Fraudsters may pose as a friend, family member, or even a company, urging you to buy gift cards as a quick solution to an emergency or to claim a prize. Scammers may ask you to share the card number and PIN, then use or resell the cards, leaving you with nothing. Always verify the legitimacy of such requests directly through a phone call or trusted contact.
3. Travel Scams
Travel-related fraud is another common scam during the holiday season. Fraudsters may advertise incredible vacation deals or discounts on flights and hotels, only to steal personal information or make off with deposits. If you see a deal that seems too good to be true, research the travel company thoroughly, look for customer reviews, and avoid clicking on unfamiliar email links.
4. Charity Scams
The holidays are a time of giving; unfortunately, scammers take advantage of this goodwill. Fake charities often reach out for donations, especially during major natural disasters or times of crisis. Scammers may even mimic well-known organizations to trick people into donating money or personal information. To avoid these scams, research the charity before donating, and use trusted platforms like Charity Navigator to verify the legitimacy of an organization.
5. Phishing Emails and Texts
Phishing attempts surge during the holidays as scammers capitalize on increased online activity. These fraudulent emails or text messages often claim to be from retailers, banks, or delivery services, asking for personal information or directing you to a fake website. If you receive an unsolicited message that asks for sensitive information, don’t click any links or open attachments. Instead, contact the company directly using a verified phone number or website.
6. Package Delivery Scams
With the increase in online shopping comes a rise in package delivery scams. Fraudsters might send text messages or emails pretending to be from delivery services like FedEx or UPS, claiming there is an issue with your shipment and asking you to confirm personal details or pay additional fees. Always double-check tracking information on official delivery websites and avoid clicking on unsolicited delivery messages.
How to Protect Yourself:
- Be skeptical of unsolicited emails, phone calls, and messages.
- Use strong, unique passwords for online accounts and consider enabling two-factor authentication.
- Research companies, charities, and deals before making a purchase or donation.
- Monitor bank statements regularly for any unauthorized charges.
- Report scams to the Federal Trade Commission (FTC) or local authorities to help protect others.
As the holiday season gets into full swing, staying aware of these scams can help protect your hard-earned money and ensure that the holidays remain joyous and stress-free. Stay cautious, stay informed, and remember: if it sounds too good to be true, it probably is.
