The holiday season is a time of celebration, generosity, and connection. However, it is also the time of year when financial scams increase. With shopping and charitable giving at the highest levels of the year, it is important to remain vigilant and take steps to safeguard your finances and personal information. We’ll explore common types of scams and provide tips on how to identify and avoid them using a few simple strategies.
Key Points
- Common Scams: Scammers exploit the holiday season with tactics like phishing emails, fake online shopping deals, and charity scams.
- Red Flags: Be cautious of offers that seem too good to be true, urgent payment requests, and suspicious messages or links.
- Protective Measures: Use secure shopping methods, verify charities, enable strong passwords, and monitor your accounts frequently.
- Set Limits: Leverage tools like Card Controls to manage and secure your spending.
Common Scams During the Holidays and Ways to Protect Yourself
1. Online Scams
Fake websites can appear almost identical to those of legitimate businesses, making it hard for shoppers to know they are in the wrong place. Deceptive “deals” may tempt shoppers with promises of unbeatable prices, often resulting in financial loss and compromised personal information. Scammers can easily collect the information you type, even if you never complete a purchase.
How to Protect Yourself: Shop Smart
Choose trusted retailers and ensure websites are secure by looking for “HTTPS” in the URL before making purchases. Whenever possible, consider using virtual cards for online transactions to add an extra layer of security by masking your actual card details. Virtual cards may be available through your bank’s mobile app. Be sure to check before you make your next online purchase.
2. Phishing Emails and Texts
Scammers may send emails or text messages posing as reputable companies, attempting to extract sensitive details such as passwords or payment information. Common phishing methods involve fake shipping notifications for things you didn’t order or pretending to be someone you know – like a boss or family member. Much like fake websites, these emails and texts can look very real.
How to Protect Yourself: Be Cautious with Unsolicited Messages
Avoid clicking on unfamiliar links or downloading attachments from unknown sources. All it takes is one click for scammers to download malware or a virus to your device. If you’re not sure about a link, you can use these methods to check it.
3. Charity Scams
Dishonest people and organizations may exploit holiday goodwill by soliciting donations for illegitimate causes. Scammers will disguise themselves as authentic nonprofit organizations, reaching you via telemarketing, direct mail, email, and door-to-door solicitations. Common themes amongst scammers include urgency for a donation and the inability to provide receipts. They may also pressure you to donate immediately, warning that your contribution is urgently needed to help victims of disasters, illnesses, or other emergencies. Additionally, scammers often avoid providing details about how donations will be used, leaving their legitimacy questionable.
How to Protect Yourself: Verify Before Donating
Use reputable resources like Charity Navigator to confirm the legitimacy of charitable organizations. You can also verify the organization’s tax-exempt status through the IRS’ Tax Exempt Organization Search Tool. Be sure to inquire about whether your donation is deductible; reputable organizations should be able to give you a clear answer. If you receive a call or email asking for donations, consider contacting the organization directly using a verified phone number or website instead of responding immediately. Taking these steps ensures your generosity goes to a trustworthy cause.
4. Gift Card Scams
Gift cards are easy to purchase, difficult to trace or refund, and can be treated as cash. Scammers sometimes request payments via gift cards, claiming this is the only acceptable method of payment. They often will tell you which gift card to buy and where and will even offer to stay on the phone with you while you go to the store and load money onto the card. Once the funds are transferred, they can quickly cash out, leaving you unable to recover your money. These scams often come disguised as urgent messages from government agencies, tech support, or even family members in distress.
How to Protect Yourself: Be Wary of Unsolicited Requests
If you receive a phone call, email, or text demanding payment via gift cards, treat it as a red flag. Legitimate businesses, government agencies, and organizations will never require or request payment through gift cards. Avoid sharing gift card numbers or PINs with anyone, especially if they claim urgency or threaten consequences. Always verify the legitimacy of the request independently by contacting the organization or individual directly through a trusted source.
5. Social Media Scams
Fraudulent advertisements or fake giveaways on social media platforms may trick users into divulging personal details or making purchases that are never fulfilled. Social Media scammers may impersonate celebrities or public figures, use the logo of a real organization, and use other people’s identities such as friends to gain your trust.
How to Protect Yourself: Scrutinize and Secure Your Accounts
Be cautious of unsolicited messages, offers, or requests for money on social media, even if they appear to come from friends or family. Scammers often hack accounts to impersonate trusted individuals. Avoid clicking on suspicious links or providing personal information in response to social media messages. Use strong, unique passwords for your accounts and enable multi-factor authentication to add an extra layer of security. Regularly review your privacy settings to ensure your personal information is only visible to those you trust. Finally, be careful about what personal information you share on social media and avoid sending money, or personal information directly to someone you’ve only met online.
Enjoy Added Security by Setting Limits and Controls
Even outside of the holiday season, it’s wise to take advantage of tools like Card Controls. You can manage how, when, and where your cards can be used or even turn them on or off – instantly. Real-time alerts help you to monitor transactions and notify you of fraud more quickly.
Stay Safe This Holiday Season
By understanding common scams, recognizing warning signs, and implementing preventative measures, you can ensure a secure and enjoyable holiday season. For additional guidance, explore our article on the Top 10 Holiday Scams to Watch Out For.
Let this season be filled with joy and giving, free from the worry of scams. Stay informed and take steps to protect yourself with the right financial tools.