The holidays are a busy time of year. Between shopping for gifts, planning family get-togethers, traveling, and giving back to the community, there's a lot to keep track of. Unfortunately, scammers know this, too.
Scammers often take advantage of the extra spending, excitement, and distractions that come with the holiday season. Their messages might look like delivery updates, special offers, or even requests for help from someone you know.
Knowing what to look for can help you protect your money and enjoy the holidays with a little more peace of mind. Here are seven common holiday scams to keep on your radar.
With all the online shopping that happens during the holidays, it's easy to get excited about a package update. Scammers take advantage of this by sending fake text messages or emails claiming there's a problem with your delivery.
You might receive a message saying your package is delayed, your address is incorrect, or you owe a small redelivery fee. The message includes a link asking you to update your information or make a payment.
How to avoid it: Don't click links in unexpected delivery messages. Instead, visit the retailer's website or the shipping carrier's official app to check your tracking information.
Everyone loves finding a good deal, especially when shopping for holiday gifts. But be careful of unfamiliar websites or social media ads advertising popular products at unbelievably low prices.
Some fake retailers take your payment information without ever sending the product. Others send counterfeit or completely different items.
How to avoid it: Stick with retailers you know and trust. Before purchasing from an unfamiliar website, look for reviews, check its contact information, and be cautious of prices that seem unusually low. Paying with a credit card can also offer additional protections if something goes wrong.
Gift cards are an easy holiday gift, which makes them a popular target for scammers. You might receive an urgent message from someone pretending to be your boss, a family member, or a friend asking you to purchase gift cards and send them the numbers on the back.
Another trick involves scammers tampering with gift cards in stores, copying the card information, and stealing the balance after someone purchases and activates the card.
How to avoid it: Never purchase gift cards in response to an unexpected request for money. Before buying one in a store, inspect the packaging to make sure it hasn't been tampered with. If someone you know asks for gift cards, verify the request by contacting them directly.
The holidays are a time for giving, and many people look for ways to help families and organizations in their communities. Unfortunately, scammers sometimes create fake fundraisers or impersonate legitimate charities to take advantage of people's generosity.
You might see a social media post asking for donations to help a local family or receive an unexpected message requesting money for a good cause.
How to avoid it: Before donating, research the organization and make sure you're using its official website or donation page. Be cautious of requests for payment through gift cards, wire transfers, or cryptocurrency. If you're donating to help a local family, verify the fundraiser through someone you trust.
Imagine receiving a phone call from someone who sounds exactly like your child or grandchild, claiming they've been in an accident or are in trouble and urgently need money.
With AI voice-cloning technology, scammers can use short audio clips from social media to create convincing imitations of someone's voice. They may pretend to be a loved one and pressure you into sending money before you have time to verify the situation.
How to avoid it: Don't let an urgent phone call pressure you into sending money. Hang up and call your family member using a number you already have saved. You can also establish a family safe word that can help verify someone's identity during an unexpected emergency.
Social media is full of holiday giveaways, from gift cards to electronics and shopping sprees. While some promotions are legitimate, scammers also create fake giveaways pretending to be well-known brands or local businesses.
You might receive a message saying you've won a prize, but first you need to click a link, provide personal information, or pay a small fee to claim it.
How to avoid it: Verify giveaways through the business's official social media page or website. Be suspicious of unexpected messages asking for payment or sensitive information to claim a prize. Legitimate giveaways generally don't require you to pay a fee to receive your winnings.
Looking to earn a little extra money for holiday shopping? Seasonal jobs can be a great way to bring in extra income, but scammers sometimes post fake job listings to collect personal information or money.
Be especially cautious of opportunities that promise unusually high pay for very little work, offer a job without an interview, or require you to pay upfront for training or equipment.
How to avoid it: Research the company before applying and look for job openings on its official website. Never pay money to secure a job, and be careful about sharing personal or banking information before verifying that an employer is legitimate.
You don't have to avoid online shopping, social media, or holiday generosity to stay safe. A few simple habits can go a long way:
If you think you've been scammed, don't panic. Acting quickly can help limit the damage.
Contact your financial institution immediately if you've shared account or card information or notice unauthorized transactions. You may need to freeze or replace your card, change your passwords, or take additional steps to protect your accounts.
You can also report scams to the Federal Trade Commission at ReportFraud.ftc.gov.
Remember, scammers don't just target careless people. They target people who are busy, distracted, excited, or in a hurry. This holiday season, take a little extra time to verify unexpected messages and requests before sharing information or sending money.
At Elevate Credit Union, we're here to help you protect what matters. If something about your account doesn't seem right, reach out to us through our official channels. We'd much rather help you check something out than have you fall victim to a scam.
If you enjoyed this article, find more just like it on our MoneySmart Tips blog.