4 holiday scams to avoid

The holidays are here, and you know what that means. It’s the perfect time to cozy up to the fireplace, grab a cup of hot chocolate and spend time with the ones you love the most. Unfortunately, it’s also a time when scammers come out of the woodworks, taking advantage of a time when you’re shopping for the perfect present and feeling your most generous.

That’s why it’s so important to know the latest tactics scammers use to take advantage of you when you’re just trying to be merry and jolly. Here are the four hottest scams to be aware of during the cold-weather months.

Package delivery scams

The holidays are the busiest time of the year for the post office. So many packages are on the move, and scammers use that to their advantage. They’ll often reach out and urge you to act so you can receive your “package” without issue. It could be a text, email, phone call or notice on your door asking you to do things like:

• Update your payment preferences.
• Provide delivery instructions.
• Track your package’s location.
• Pay a shipping fee.
• Reschedule your delivery.
• Provide personal information.

Tip: When in doubt, don’t click links or give out your personal information. If you have packages on the way, go straight to the seller or delivery service for help or status updates.

Gift card scams

These are increasingly common and surprisingly easy to pull off. A scammer will:

1. Text or email you posing as someone you know (often a leader at the company you work for).
2. Urge you to buy gift cards worth hundreds of dollars, claiming they’ll reimburse you later.
3. Ask for the redemption codes on each gift card.

This scam might sound easy to spot, but it could be trickier than you think. For example, the fraudster might even monitor your LinkedIn profile and pose as your CEO when you start a new job. Assuming you’re eager to please and you don’t have your CEO’s real phone number, they’ll pressure you to act quickly. You may not think much of it, especially considering it’s the holiday season when companies often buy gift cards for their employees.

Tip: If a fraudster poses as a workplace leader to try to pull this scam, you may not be the only one they target. Be sure to report it to the company so they can notify your fellow employees.

Social media scams

There are countless promotions and savings opportunities on social media during the holidays, making it the perfect environment for fraudsters to add an online shopping scam to the mix. They might even pose as retailers or influencers you know and trust. Be careful if you see a page promoting an incentive for you to engage with them or give them information, like:

• A gift card or voucher in exchange for your participation in a survey.
• A contest entry when you follow a page or share a post.
• A sale you can only get using a link they’re providing.

As always, avoid clicking on suspicious links and giving sensitive information to questionable sources. There are plenty of legitimate holiday deals out there, so just keep scrolling!

Charity robocall and text scams

Like all the holiday scams we cover here, fraudulent robocalls and text messages target people year-round. But fake charities are among the most common ones during the holiday season. If you receive a call, text or email asking you for a donation, just remember: It’s OK to pause for a good cause. If you take a few extra minutes to research the organization, it could pay off – literally.

Here are some questions to ask yourself:

• Are they pressuring you? That’s a red flag. A real charity would appreciate your generosity whether it’s today or next week.
• Have you verified their information? Did you find their name online? Does the contact information match?
• How are they requesting payment? A true charity would never ask you for a wire transfer or to share gift card redemption codes. A debit/credit card or check is more standard.
• Are they asking for a lot of personal information? If something seems off, it probably is. You can always give out your information later once you know you’re dealing with a legitimate organization.
• Have you answered all the above with confidence? It still can’t hurt to go directly to the charity you’d like to donate to – online, by phone or in person. It’s the only way to be sure you aren’t getting scammed.

You know wish lists. How about checklists?

From clicking to gifting, run through this quick holiday checklist so you can stay safe and in good spirits:

1. Pause before acting: Scammers use pressure to urge you into making a decision without all the important information.
2. Verify unexpected messages: Get a weird message? Contact the company directly using their trusted website or phone number.
3. Check links: Don’t click links in unexpected messages. Instead, visit the company’s trusted website or contact it directly using a verified phone number.
4. Research charities: We know you’re in the giving mood, but verify the organization’s legitimacy before donating your hard-earned money.
5. Stay skeptical: Skepticism doesn’t make you a scrooge; it can make you safe. Too-good-to-be-true deals are often signs of a scam.
6. Know safe payment methods: Most legitimate businesses and organizations take payment by debit or credit card.

Stay safe this holiday season

When in doubt, back out. You shouldn’t feel pressured this holiday season (or any season!) to make quick decisions about donations or purchases. 

Want to stay in the know about financial and information security? Take a deeper dive into package scams, learn about common government impersonation scams and more in our Learning Center.