The holiday season is prime time for fraud. Scammers become more active during this busy period, taking advantage of distracted shoppers. Let's take a few minutes to familiarize yourself with the warning signs of the most common holiday scams, including:
Criminals use fake posts and social media campaigns to impersonate major brands or promote products they never intend to ship. More consumers are buying from social media without doing their research. Many social media ads are not vetted. Be cautious when you see an item offered at a price that seems too good to be true. If you click on an ad, make sure it directs you to the legitimate website.
Gift card draining remains a common scam. Criminals steal gift cards in bulk from store racks, record the card information, and then return them for unsuspecting shoppers to buy. Once you load money onto the card, the scammer can drain the funds—sometimes before you even leave the store. To stay safe, buy gift cards kept behind the counter or purchase them directly from the retailer’s website.
With packages traveling nationwide, scammers send phishing emails and texts that appear to come from UPS, FedEx, or the U.S. Postal Service, claiming there are incoming or missed deliveries. These links lead to fake sign-in pages requesting personal information or to sites that may contain malware.
Ensure your donation goes to a legitimate cause, not a scammer. Fraudsters use emotional stories to gain your trust and pocket the money. Like real nonprofits, they may contact you via telemarketing, direct mail, email, or door-to-door solicitations. They often use social media and create convincing websites with deceptive names. Be proactive: review their website, avoid sharing personal or financial information, keep donation records, and monitor your bank accounts closely.
Additional Tips to Stay Safe During the Holidays
Visit verified websites directly. Instead of clicking links in emails or texts about hot deals, open your web browser and type in the official address of the company offering the promotion.
Pay with a credit card whenever possible. This allows you to dispute charges and limit potential losses if you encounter a fraudulent transaction.
Buy gift cards from behind the counter, where security is higher, and save the receipt showing the time and amount loaded. Consider sending an e-gift card, which is less likely to be tampered with by criminals. Always purchase e-gift cards directly from the retailer’s website, not from third-party sellers.
Research donation requests thoroughly. CharityWatch, Charity Navigator, and GuideStar offer resources on charitable organizations, including ratings, reviews, and financial details.
How to Report Scams
If you’ve lost money or have information about a scammer, report it to the FBI’s Internet Crime Complaint Center. While not every complaint leads to direct enforcement, your information helps officials spot trends and may assist in identifying criminals. Also, contact your financial institution right away.