Don’t Let Scams Spoil Your Holiday Season
The holiday season is upon us, and while you may be prepared to spend a little extra this time of year, you likely don’t have room in your holiday budget for stolen funds. Unfortunately, thousands of people each year fall prey to holiday scams which could leave you in a financial bind that stretches far beyond the festive season.
In this article, we’ll explore five common scams you may encounter around the holidays, so you’ll know what to look out for and how to avoid them.
Secure Your Special Deliveries
Billions of packages are shipped each holiday season, and scammers have come up with several ways to steal joy – and money – from both shippers and recipients. Many of these scams rely on communications (texts, emails, calls, or notes) that include one or more of the following elements.
- A link to track your package, get a delivery update, provide updated drop-off instructions, change your payment method or delivery date, or pay a shipping fee.
- A phone number to call about an urgent issue or missed delivery.
- Overly urgent language, misspellings, errors, and imperfect logos.
Tip: Never click on a link or call the listed number. Instead, go back to your original orders to see tracking numbers and be sure to check their progress regularly.
Clicking a link could install malware on your device that allows a scammer to capture personal information, and friendly-sounding “customer service representatives” on the phone could be scammers.
Be On Guard for Unusual Gift Card Requests and Offers
According to the Federal Trade Commission (FTC), gift cards are the most reported payment method for scams. Most of the gift card scams fall into these categories:
- Impersonating a government agency like the IRS or a trusted company to demand immediate payment.
- Impersonating a loved one who needs help.
- Impersonating a charity or fundraiser.
- Fake prizes that you need to send in personal or payment information to claim.
Tip: No legitimate government agency, company, or charity will require payment in gift cards. If you receive requests for gift cards from a friend or family member, contact them directly to verify. Never provide personal or payment information to claim unexpected prizes. If a message seems unusual or too good to be true, it is.
Sidestep Social Media Gift Exchange Schemes
While that annual Secret Santa with your friends or coworkers can be a lot of fun, “gift exchanges” popping up on social media feeds are often illegal pyramid schemes instead. They frequently solicit personal information about you and your friends to prompt you to buy and ship gifts to others with the promise that you’ll receive great gifts in return. Beyond the initial disappointment of not ever receiving those gifts, you could be setting yourself (and your friends) up for future scam targeting or even identity theft.
Tip: Avoid these large and “secret” gift exchanges on social media. Report these types of social media posts to both the social media provider and the Better Business Bureau.
Take a Second Look at Temporary Job Offers
Lots of legitimate companies need extra help around the holidays to keep up with increased demand. Scammers are out there preying on seasonal job seekers too. Be suspicious if you see any of these elements in a job listing:
- Requests for payment for your application, training, or supplies.
- Promises of high wages for routine or low-effort tasks.
- Requires applicants to work for free initially to show their skill level.
Tip: If possible, stick to local businesses you know when applying for seasonal jobs. Avoid listings and job offers that contain any of the suspicious elements listed above.
Do Your Research Before You Donate
It’s the season of giving, and many people plan to be extra generous to the causes and charities they support. Criminals can take advantage of these good intentions by making urgent requests and sometimes requesting contributions in unusual formats – like gift cards, wire transfers, or cryptocurrency.
Tip: To avoid falling into a charity scam, always investigate the organization before you donate. Contact organizations directly if you receive an unsolicited fundraising request. Avoid contributing with nontraditional forms of payment (e.g. gift cards, bitcoin, wires). Instead opt for a more secure and traceable form of payment, like a credit card.
What to Do If You Think You’ve Been Scammed
By keeping a watchful eye out for potential scams, we hope you’ll be safe this holiday season. But if you ever do fall into a scammer’s trap – or think you might have – there are things you can do to reduce the impact.
- Alert your bank and credit institutions.
- Report the scam to local law enforcement and file a complaint with the FBI.
- Temporarily freeze your credit reports.
- File a complaint with the FTC to help protect others from similar scams.