The holidays are a season of joy, giving, and celebration. But amidst the festive cheer, scammers wait, ready to exploit unsuspecting shoppers. According to the FTC, nationwide fraud losses topped $10 billion in 2023. With online shopping at an all-time high and countless promotions vying for your attention, it’s easy to get caught up in the excitement. Keep your holiday season merry and scam-free by recognizing the red flags and practicing safe holiday shopping.
Common Holiday Shopping Scams
Bogus Online Stores
Scammers create convincing, professional-looking websites offering high-demand products at unbeatable prices. Once you make a purchase, your order never arrives, or you receive a counterfeit or inferior product.
Look for the Red Flags
- The website URL looks slightly off (e.g., “amaz0n.com” instead of “amazon.com”).
- The store lacks contact information or a return policy.
- Prices seem too good to be true.
Hot Toy Social Scams
Each holiday season brings a few must-have toys or gifts that may be impossible to find. Fraudulent ads on platforms like Facebook or Instagram promise deals on popular items. Clicking on these ads can lead to fake checkout pages or malware downloads, which may dupe shoppers into buying cheap rip-offs of expensive toys.
Look for the Red Flags
- “Flash sale” or last-minute deal ads from unknown retailers featuring the season’s “must-have” toys on social media or online pop-ups.
- Unreasonably low prices on popular toys.
- The account hosting the ad has few followers or posts.
- The product either lacks reviews or has only generic or overly positive reviews.
Phishing Emails and Texts
You might receive emails or text messages pretending to be from trusted retailers or delivery services. These messages often include links that lead to fake websites designed to steal your login credentials or financial information.
Look for the Red Flags
- Messages contain urgent language like “Act now!” or “Your account has been compromised.”
- Links direct you to a suspicious-looking website.
- The sender’s email address is unrelated to the official company.
Holiday Charity Scams
The holidays inspire generosity, and scammers exploit this by creating fake charities. They use emotional appeals to pressure you to donate on the spot.
Look for the Red Flags
- The charity’s name sounds unfamiliar or very similar to a legitimate organization.
- High-pressure tactics may be used to rush you into donating immediately or without thought.
- Donations are requested to be made via cash, wire transfers, or gift cards.
Holiday Travel Scams
Planning a holiday getaway? Fraudsters advertise fake vacation rentals or deeply discounted travel packages. Victims often discover that the property doesn’t exist or that their reservation was never made.
How to Protect Yourself:
- Book only through reputable travel platforms.
- Research the property and read reviews before committing.
Package Delivery Scams
Scammers send fake notifications claiming your package is delayed or undeliverable. They may ask for payment to “release” your package or direct you to a phishing site.
How to Protect Yourself:
- Verify the message by checking directly with the shipping company.
- Avoid clicking on suspicious links or attachments.
Pop-Up Holiday Event Scams
Seasonal markets or pop-up shops can be delightful but also a haven for scammers. Vendors at these events might sell fake goods or take your money without delivering the promised products.
How to Protect Yourself:
- Pay with credit cards to benefit from purchase protection.
- Research the event and vendors in advance.
Tips to Enjoy Safe Holiday Shopping
- Shop on Trusted Websites: Stick to well-known retailers or websites with positive reviews. If you’re shopping at a new store, look up its reputation on sites like Trustpilot or the Better Business Bureau.
- Check for Secure Connections: Ensure the website is secure before entering personal or payment information. Look for “https://” and a padlock icon in the URL bar.
- Use Strong Passwords and Enable Two-Factor Authentication: Protect your online accounts by using unique, complex passwords. Adding two-factor authentication (2FA) provides an extra layer of security.
- Avoid Public Wi-Fi for Shopping: Hackers often target public Wi-Fi networks to intercept sensitive data. Use a secure, private connection or a VPN when shopping online. A VPN, or Virtual Private Network, encrypts your internet connection, making it more secure and protecting your data from potential hackers.
- Monitor Your Financial Statements: Monitor your accounts closely during the holiday season and report unauthorized transactions to your credit union immediately.
- Be Wary of Unsolicited Communications: Whether it’s a deal, a charity request, or a delivery notification, treat unsolicited emails or texts with skepticism. Verify the sender’s identity before responding.
- Don’t Overshare: Legitimate retailers won’t ask for excessive personal details like your Social Security number or account passwords. Provide only the information necessary for the transaction.
- Set Spending Alerts: Choice One’s Card Hub feature enables you to turn your cards on/off at your discretion, set spending limits, create travel plan notifications for your financial institution, and easily dispute transactions.
Enjoy Safe Holiday Shopping and a Scam-Free Season of Cheer
The holiday season should be about joy and togetherness, not stress over falling victim to scams. You can protect yourself and your loved ones from fraudsters by staying informed and vigilant. Take a beat when shopping, and verify, research, and think before you click or purchase. With these tips in mind, you’ll enjoy a safe and merry holiday season.
Read our blog on crypto scams, “Investing or Deceiving? Unmasking Crypto Scams as a Leading Fraud Trend.”