Protect Yourself From These 5 Holiday Scams
Protect Yourself From These 5 Holiday Scams
By: Stacey Nickens
‘Twas the month before Christmas, and all through the land, every mom and dad was buying all the toys that the stores had on hand. When on their credit card statement there arose such a clatter, they had to call American Express to see what was the matter. When what to their nervous hearts should come true, but a fraudster had stolen their credit card information and names too!
While my poem may give you a little chuckle, becoming the victim of fraud would be no laughing matter. Unfortunately, scams have become increasingly common during the holiday season, with 25% of Experian survey respondents reporting becoming the victim of fraud during these joyful months. Fraudsters take advantage of the rise in online shopping, the general holiday chaos, and people’s giving spirits in order to steal and harm.
But none of us want the Grinch to take our Christmas roast beast. So make yourself aware of these 5 common holiday scams, and take protective measures today.
1. Gift Card Scams
If you’ve begun ordering gifts, you may have noticed longer shipping timelines and more delays. The most wonderful time of year has lost a little of its sparkle to supply chain constraints, and with that, more people are turning to gift cards to stuff their stockings.
Fraudsters are jumping on the mall choo choo train and pushing their victims to pay for a fee with a gift card. Fraudsters may claim paying the fee will help the victim avoid trouble with the government or will allow the victim to assist a member of their family. Unfortunately, the Federal Trade Commission (FTC) reports that 25% of fraud victims paid with a gift card.
Knowing this, never respond to demands asking you to pay for something with a gift card.
2. Charity Scams
We all want to help those who are less fortunate, but make sure that your donation is going to a real charity.
Scammers may rush you through the donation process. Some fraudsters will even thank you for making a fictional donation and then ask for another payment. These scams will only describe the charity in vague terms and will never be clear about how the donated funds will be used.
To protect yourself from these scams, use Charity Navigator to research any charity before giving money.
3. Package Delivery Scams
After ordering a gift online, many of us track packages online or via text. Scammers are accordingly sending fraudulent delivery calls and texts. These scams may look like they’re coming from a legitimate delivery service and may include a false tracking link. If you click on this fraudulent link, you may be taken to a website where you’re asked to enter your personal information. Alternatively, the website may install malware on your phone or computer.
Other package delivery scams come in the form of voicemails. You will be asked to call back in order to receive your delivery, but when you return the call, you’re hit with steep connection fees and high per-minute rates. The FTC says to watch out for numbers with an 809 area code or for 10-digit international numbers.
Finally, package delivery scams could ask you to pay a fee in order to receive your package.
You can protect yourself by going directly to the delivery service’s website in order to check the status of your package. If you receive an email with a tracking link, double check the URL. Fraudulent links may include slight misspellings, such as “fedx.com.”
4. Fake Gift Exchanges
Social media sites have become the home of fraudulent gift exchanges.
One such scam is called the “Secret Sister” gift exchange, which promises that participants will receive up to 36 gifts in exchange for purchasing just one gift. The scam asks you to provide your name, address, and the names of your friends.
You’re unlikely to actually receive gifts in return, and since you have given your personal information to scammers, these fraudsters may add you to other scam lists or commit identity theft.
Should one of these gift exchanges pop up on your social media, report the post.
5. Holiday Job Scams
Many companies are looking for seasonal workers, and fraudsters will take advantage of this by posting fake job descriptions.
These job descriptions may tell the applicant to pay for job supplies, the application, or training. Fraudulent postings will likely promise incredibly high pay for routine tasks.
Other scams may ask you to do work for free. If you’re applying to jobs this season, make sure to get an offer letter in writing that details your job and compensation prior to starting work.
How can you protect yourself?
This holiday season, make sure to watch what you click, do online shopping on secure Wi-Fi networks, and regularly review your financial statements. You can also review these guides for protecting your personal information, developing strong passwords, and avoiding identity theft.
