6 Holiday Scams and How to Avoid Them
This holiday season, people are expected to spend billions of dollars buying gifts, especially with so many shoppers turning to online stores. While this is a time of excitement and celebration for most, it's also a time when scammers are looking to take advantage of people. These fraudsters use various tricks to deceive consumers into making fake purchases, stealing their personal information, or even taking money directly from their bank accounts. With more people shopping online than ever, it's easy for scammers to create fake websites, send fraudulent emails, or even set up ads for products that don't exist. It's important to stay aware and take precautions to avoid falling victim to these scams. Here are six holiday scams to watch out for.
#1 Fake Charity Scams
During the holiday season, many people feel extra generous and are more likely to donate to charities. Unfortunately, scammers take advantage of this kindness by creating fake charity organizations to trick people into giving money to them instead of a legitimate cause. To make sure your donation goes to the right place, it's important to research the charity before you give. Wells Fargo® recommends you always check the charity's website, look for reviews, and see if it is registered with an official charity watchdog organization. Taking these steps can help ensure that your donation helps those who truly need it, and not scammers who are only looking to take advantage of your goodwill.
#2 Fake Package Scams
Be cautious when you receive a text or email out of the blue, especially if it seems to be from a well-known company claiming to help you track a package or resolve a "lost" package issue. Scammers often use these messages to trick people into clicking on dangerous links or downloading malicious attachments. These links might take you to fake websites that look real but are designed to steal your personal information or install harmful software on your device. Always double-check the sender's information and avoid clicking on any links unless you are sure the message is legitimate. If you're unsure, go directly to the company's official website or contact their customer service to verify the message before taking any action.
#3 Facebook® Marketplace Scams
If you've ever bought or sold something on Facebook Marketplace, you've probably encountered a scammer at some point. While some scams are easy to spot right away, others might take a few messages — or a mistake — before you realize what's happening. Scammers often list fake items, cars, or rental properties and ask for payment through apps or gift cards, then vanish. Others pretend to buy something from you, asking for your phone number and two-factor authentication so they can steal your identity. Some even overpay you and ask for a refund. If you're buying or selling this season, stay alert. Always keep your conversations within Facebook Messenger, and only exchange money in person when you're handing over or receiving the item. Staying smart and cautious will help protect you from falling victim to these scams.
#4 Gift Card Scams
Be very careful when buying gift cards from third-party websites, especially if you don't know the seller personally, warns Chase Bank®. Some scammers will save card details ahead of time or even sell expired gift cards, leaving you with something that's no good. It's also important not to respond to unsolicited emails or text messages offering you a free gift card or asking for gift card information. These messages are often tricks used by scammers to track your online activity or gain access to your personal information. Always make sure you're purchasing gift cards from trusted, official retailers to protect yourself from fraud.
#5 Natural Disaster Scams
Unfortunately, scammers often appear after natural disasters, hoping to take advantage of people when they're most vulnerable. While natural disasters can happen at any time, storms and hail are more common during the winter and can cause damage to your home, car, or property. Be careful of offers for financial help, as scammers may try to steal your personal information. Also, when paying for repairs or replacements, watch out for scammers who may not finish the job or deliver what they promised. Always make sure you're working with trusted and reliable companies to avoid getting scammed.
#6 Popular Toy Scams
Scammers know how to take advantage of emotions, especially during the busy holiday season when parents are trying to find the latest and most popular toys for their kids. They often send fake links that seem like great deals, but they lead to fraudulent websites that can steal your personal information or money. To avoid falling for these scams, make sure you're only shopping with well-known and trusted retailers. Don't click on links from unsolicited emails or messages, as they could be attempts to trick you into giving away your information. Always double-check the website's URL and look for signs that it's secure, like a padlock symbol next to the web address, before making any purchases.
When shopping online, always be cautious. Scammers often create fake websites that look like real online stores, so double-check the URL for any misspellings and look for a padlock icon and "https" in the web address to ensure the site is secure. It's also safer to use a credit card for online purchases, as it offers better protection against fraud compared to debit cards or payment apps. Be skeptical of product reviews too, as fake ones can be generated using artificial intelligence. Instead, do your own research and rely on reviews from trusted sources to make sure you're getting what you pay for. Taking a few simple steps will keep the Grinch scammers from ruining your holidays!
References: As You're Shopping This Season, Beware These Common Holiday Scams | Don't Let Fraudsters Ruin Your Holidays
