’Tis the season for warm gatherings, festive gift exchanges, and a great deal of shopping. Regrettably, it also happens to be a season ripe with scammers attempting to take advantage of so much generosity.
From data breaches to phishing emails, there’s no shortage of ways in which your information, money, or identity can be threatened. That’s why it’s important to help protect yourself by brushing up on fraud prevention tips. After all, simply being aware of common scams may help you avoid falling victim and incurring the financial damage they can cause at any time of year.
Here are 7 common holiday scams and what you can do to avoid them this season.
1. Fake shipping notifications
Online shopping has become the norm, especially during the holidays. This, in turn, has resulted in an increase in the number of shipping notifications from retailers and carriers. As a result, phishing and smishing scams have also surged with fake notifications about package deliveries. Many of these imposter emails and texts include links that may download malware onto your device, take you to a phishing site and trick you into providing your login credentials, or scare you into paying fraudulent shipping fees.
What to do: Never click a link in a text or email. Keep track of what you ordered. If you need to track a package, find the link in the original confirmation message sent from the retailer or navigate directly to the retailer’s site.
2. Gift card scams
Gift cards are a holiday favorite for shoppers and scammers alike. While shoppers love the purchasing freedom a gift card allows, scammers love transactions that are untraceable and irreversible. Most gift card scams revolve around tricking buyers into giving up the numbers on the back of the card or tampering with gift cards and “draining” the funds after they are loaded (and before the recipient can use them).
What to do: The easiest way to avoid gift card scams is to buy your gift cards online from reputable retailers. If purchasing from a store, check carefully for signs of tampering and make sure to keep your receipt to give you better chance of recouping your losses if you’re victimized by a gift card scam.
3. Social media scams
Social media sites serve as a great platform for introductions to new places, recipes, activities, retail items, and even dance trends. However, they can also be the home for phony accounts, fraudulent items, and fake ads. So, before you end up with a counterfeit product, join a bogus “gift exchange,” or have your identity or financial information stolen, do a little investigating.
What to do: Don’t assume a site, store, or offer is legit because you saw it on social media. If you scroll upon something you’d like for yourself or for someone else, do an online search for the product or company to confirm its legitimacy. If you see a great deal advertised on social media, navigate directly to the retailer’s site to take advantage of the savings. You can also use the Better Business Bureau’s scam tracker to research unfamiliar companies, check if a site/scam has been reported, or report something yourself.
4. Pet scams
It may seem odd for pets to end up on a holiday scam list, but the BBB has reported an increase in pet-related scam activity in recent years. With so many shoppers turning to the internet to find their future puppy or kitten, it isn’t much of a surprise to hear that a shocking 80% of sponsored pet advertisements are fake. These scammers may also try to con prospective pet parents into paying additional veterinary bills before the “adoption” of the imaginary animal is complete.
What to do: Always see the pet in person before making an online purchase. Not only is it a surefire way to verify the pet really exists and is healthy, but it is also a great opportunity for a pre-purchase cuddle. Even better, find your new furry family member through a reputable rescue organization. When making a payment, use a form of payment that has some fraud protection, such as a credit card.
5. Charity scams
The weeks leading up to the end of the year are often among the busiest for charitable organizations and donations. And just like every other item on this list, it also means a swell in scammers posing as fraudulent charities or individuals in need, each hoping to take advantage of good-hearted donors by taking money or personal information.
What to do: There are any number of ways to ensure your donation is going to a worthy cause. But a good place to start is avoiding an impromptu donation decision to an unfamiliar organization or individual. Verify the legitimacy of your charity at give.org. When possible, be sure to donate through a charity’s official website and use a credit card.
6. Holiday app scams
Holiday apps are becoming more prevalent, especially among kids looking to play holiday-themed games or track Santa’s sleigh. As is the case with anything and everything in our digital world, it also means the risk of scammers using apps as a front to gain access to your personal information.
What to do: Before downloading any app, review the privacy policies to see what information will be collected and sold. It is also helpful to read reviews or ask others what they know about it. If the app is free, be cautious. Free apps may collect and sell your data or could be used to deliver malware or spyware to your device.
7. Temporary holiday job scams
If you’re looking for seasonal work this holiday, be cautious of job opportunities that seem too good to be true, especially if advertised through social media. Employment scams were listed as the riskiest scam in 2023. And since the holidays tend to see an employment swell to accommodate holiday shoppers, they also present an increase in scammers aiming to employ your personal information.
What to do: Never do work for a company before they officially hire you. Beyond that, be wary of any employers offering big money for small jobs or requiring upfront payments for supplies or training fees. Also, any job that doesn’t require some form of an interview is a red flag.
Take action if you get scammed
The holidays are meant to be a time of celebration and cheer, not a time to stress about fraud. However, if you do happen to fall victim to a fraudulent act, here are a few things you can do:
- Report fraudulent activity to local law enforcement.
- Alert your bank or financial institution.
- Report the scam to the FTC (even if you simply encounter a scam, the FTC encourages reporting it to help others avoid becoming a victim).
- File a complaint with the FBI.
- Set up fraud alerts and/or freeze your credit. Consider signing up for credit monitoring.
To help protect yourself and your finances, check out the many account security tools Zions Bank offers. As always, our Zions Bank team is here for you by phone, online or in person at a local Zions Bank branch to answer any questions or support you in any way you need.
