Meaning, joy and hope abound during the holiday season, from bright Hanukkah candles to cheery decorated Christmas trees. Unfortunately, scammers are preying upon holiday shoppers. Rather than spread joy, they use bah-humbug tactics to commit fraud during this season of giving. Find out how to stay scam-free during this most wonderful time of the year.
What are holiday scams?
Holiday scams are fraudulent schemes that target people during the busy holiday season. Scammers hone-in on the generosity of others during this festive time of year by stealing money or personal identities. Scammers use every trick in the book, intentionally tricking people into divulging sensitive information, stealing funds and destroying a person’s credit, and exploiting the spirit of giving. Fortunately, good people can take steps to protect themselves. It helps to understand what scams are out there, learn how they work, and spot signs to prevent being scammed.
What holiday scams are out there?
There are many types of holiday scams that are common, including but not limited to:
- Fake shopping sites & deals: These lookalike stores offer unbelievable discounts or hard-to-find items or offer deals that seem way too good to be true. Unfortunately, these shopping scams sites are designed to lure victims in and get them to buy fake items that are never delivered or are cheap imitations. The goal of this scam is not to deliver goods – but to steal payment information from shoppers. How to spot this scam: If a deal seems too good to be true, it probably is. The best advice is to stick to retailers you know and trust when shopping online. When shopping online, type carefully and watch out for misspellings intentionally designed to take you to a similar phony scam website. Before entering payment information, do some research and only pay by credit card. If a seller says you can only pay with a gift card, wire transfer, payment app, or cryptocurrency – it’s a scam. Don’t do it.
- Fake delivery messages: This scam is a biggie this year! Here, customers receive unsolicited messages via text or email that impersonate legitimate carriers like USPS, FedEx, or UPS. The messages may indicate that a missed delivery occurred or ask for clarification of information to complete the delivery. These scams are designed to trick innocent individuals into revealing sensitive personal or banking information. Sometimes, individuals are instructed to click on a link which is ultimately designed to install malware onto their computer. Or people might be directed to call a provided phone number. When they do, scammers pretend to be a customer service agent and steal information. The best advice is not to respond to delivery messages. Rather, track your packages yourself by going directly to the company with whom you’re doing business to determine if there sincerely is an issue with your delivery. Chances are all is well! Never use contact information provided to you by a potential scammer.
- QR holiday code scams: Quishing is the term given to QR code scams whereby criminals use malicious quick response (QR) codes and trick victims into scanning them. A QR code is a two-dimensional barcode that can store information like website links or app downloads. They can be scanned using a smart camera or device. Typically, a notification appears. Once it’s tapped, it takes people to a relevant website or app. Scanning a “bad” QR code can lead victims to fake websites designed to steal login credentials, financial data, or install malware. A malicious QR code may be sent via email, text, or be hung somewhere physically (on advertisements, parking meters, fake tickets, etc.). Scammers use this tactic to bypass traditional email security filters. The best advice is to be suspicious of all unsolicited codes. Only scan QR codes that you know and trust. Check the URL (note that many smartphones show a preview of the URL after scanning a QR code before going to the site.) Inspect this carefully for slight misspellings or unfamiliar domain names that indicate a scam. Note that QR codes found in public spaces are subject to tampering – so it’s best not to scan them.
- Tampered gift cards: In this common scam, bad actors will tamper with a physical gift card that is sold in a store. The goal is to steal PINs and funds. A tampered gift card is one that criminals have manipulated before they are purchased. Frequently, the silver strip is scratched to steal the card number and PIN. Then, the cards are carefully resealed. Next, the packaging is returned to the shelf. The criminals now wait for an unsuspecting customer to buy and load the tampered card so they can drain the funds. The best advice is to never buy gift cards that are sold out in the open where they can be tampered with and returned to the shelf. Only buy gift cards that are locked away. Another way to get around this scam is to buy gift cards directly from the retailer’s legitimate website.
Don’t let scammers steal holiday joy!
It’s unfortunate that people who are buying gifts and spreading cheer must be cautious of holiday scams. Woefully, scammers are growing more savvy, so it’s up to consumers to keep up with the latest scams and be cautious. Holiday scams are specifically designed to target innocent shoppers and unsuspecting victims. They occur in numerous ways including fake shopping sites and deals, fake delivery messages, QR code scams, tampered gift cards and more. This requires consumers to be on the lookout for holiday scams. It’s imperative for shoppers to promptly report fraud to proper agencies such as the Federal Trade Commission (FTC), the FBI’s Internet Complaint Center (IC3), the Better Business Bureau (BBB), or the Consumer Financial Protection Bureau (CFPB). The goal of reporting scams is to possibly recover lost funds, stop scammers dead in their tracks, and deliver justice where it’s due.
Disclosure: This article is purely informational and is not intended as a substitute for professional advice.
