Holiday Fraud: 9 Scams To Avoid This Holiday Season

Holiday fraud is increasing as more shoppers turn to ecommerce sites to fulfill their holiday gift lists. Scammers are ramping up their tactics to ensnare victims, from social media scams to package delivery scams and more.

Knowing how to spot a holiday scam and arming yourself with a highly ranked identity theft protection plan are two simple ways to keep yourself safe this holiday season.

9 holiday scams

Online scammers aren’t just around during the holidays, but the gift-giving season does present unique challenges to staying safe online. Holiday shoppers are projected to spend over $280 billion on ecommerce sites, and many scammers are ready to capitalize on you pulling out that credit card.[1]

Phishing scams

Phishing scams during the holiday season look a lot like those during the other months of the year but with a seasonal twist. Scammers send fraudulent text messages or emails, pretending to be from legitimate sources like retailers or shipping partners.

They prompt you to click a link, taking you to a third-party site where the fraudster can steal your information or infect your device with malware.

Warning signs:

Unsolicited texts or emails asking you to click a link usually indicate something phish-y is happening. Avoid clicking on links unless you’re sure it’s from a trusted retailer.

Scrutinize sender details. Often, scammers prey on the hustle of the holiday season to trap an unsuspecting victim. The email looks similar to one from a legitimate site, but if you look closely, you’ll see discrepancies or errors in the sender details.

Beware of any language of urgency or grammatical errors. Most major retailers won’t have typos and will use punctuation correctly.

Fake ecommerce sites

In this popular holiday scam, fraudsters create fake websites or apps that mimic legitimate retailers. When you input your payment information, you’re essentially handing over your card info.

Warning signs:

Verify the URL before entering any payment information. Look for HTTPS and make sure there aren’t any spelling errors in the URL. If you’ve never heard of the company, do a quick internet search on the retailer to see if you can find any reviews or complaints.

Use discretion when looking for online deals. If something sounds too good to be true, it likely is.

Gift card scams

Gift cards are popular with scammers because they are untraceable, and getting funds back into the rightful owner’s hands is nearly impossible. In this holiday gift card scam, scammers save gift card information or sell used gift cards.

Warning signs: 

Be wary of anyone requesting payment using a gift card. Similarly, if you’re buying gift cards from third-party sites, make sure it’s a reputable company.

Charity scams

Scammers often take advantage of people and their giving spirit during the holidays. They may send emails or text messages claiming to be raising funds for relief aid or community initiatives and asking for donations.

Like phishing scams, these messages may appear legitimate with professional-sounding names or may even mimic well-known organizations.

Warning signs:

If you’re feeling the urge to make a charitable donation, always donate through well-known, established charity sites. You can verify the legitimacy of a charity through the Better Business Bureau.

Avoid donating through unsolicited messages or social media links. As always, look for typos, spelling or grammatical errors, and anything that looks off.

Package delivery scams

Package delivery scams are some of the most popular scams during the holiday season, and they come in many forms.

You may receive a text from a “reputable” shipping partner like UPS claiming a package is undeliverable because of an incomplete address. The sender includes a link for you to click to confirm your address or may ask you to pay a fee to deliver the package.

New scam tactics include failed delivery notices stuck to front doors with a QR code to scan. When you scan the code, you open your device to malware or another site to enter your valuable, sensitive information.

Warning signs:

If you receive an unsolicited text message from a reputable shipping partner, don’t respond or click on any links. UPS will use text messages if you’ve opted in to text alerts, but they will not ask for personal information via text.

Suspicious-looking failed delivery notices on your door are another red flag. If you’re awaiting a package, take your tracking number and go to the shipping website to find out where your item is located.

Counterfeit goods scams

In this scam, fraudsters sell look-alike or knockoff items at brand-name pricing. They may use stolen imagery from reputable brands to make you think the item is legitimate, but it’s counterfeit.

Warning signs:

There are reputable third-party selling sites that sell legitimate brands, but do your research before placing your order. Check the seller history and read reviews.

Limited reviews or a short selling history are reasons for pause. Be cautious of significantly lower prices than expected, and always use a secure payment method like a credit card.

Social media ad scams

If you're scrolling through social media and encounter an advertisement that promises a fantastic discount on a typically expensive item, it's likely a scam.

A social media ad scam happens when a scammer creates a seemingly legitimate ad on social media to trick you into providing personal information, clicking on malicious links, or purchasing counterfeit products.

They often use enticing offers like significant discounts or fake giveaways.

Warning signs:

It can be tricky to discern a fake profile from a real one, as scammers often use stolen imagery to mimic reputable sites. However, look for low engagement on posts or many recent posts, as this may be an attempt by the scammer to create a legitimate-looking profile quickly.

Fraudulent customer support scams

While this scam isn’t unique to the holidays, the holiday season is the perfect opportunity to scam unsuspecting victims, since so many people are making online orders.

Fraudulent customer support scams usually occur when a scammer poses as a customer service representative. They reach out through phone calls, emails, or text messages, claiming a problem with your order or account and offering to fix the non-existent issue.

Warning signs:

Be wary of unsolicited contact or unexpected phone calls claiming to be from customer support. They often use high-pressure tactics, urging you to act immediately or they request remote access.

These fraudsters may also request payment through unusual methods like gift cards or wire transfers. If you receive a call from a customer service representative with any of these signs, it’s best to hang up immediately.

Never disclose personal information without verifying you are talking to a legitimate employee.

Travel scams

There is a high travel demand during the holidays as consumers visit family and friends near and far. Scammers capitalize on this trend by offering fake deals on flights, accommodations, or even entire vacation packages.

They entice travelers with deceptive online listings with fake images or websites, mimicking legitimate companies or listings. They try to lure people into paying for travel arrangements that don’t actually exist.

Once you make a payment, they vanish, leaving you without any travel plans and with a hole in your wallet.

Warning signs:

The number one sign of a scam is a deal that’s too good to be true. If you see a “deal” on a flight, hotel, vacation rental, or vacation package that’s significantly lower than everywhere else, take caution because it’s probably a scam.

Look out for fake websites, phishing emails, and pressure to book quickly.

Holiday safety tips

Scammers and cybercriminals are always lurking, but the influx of online shopping during the holidays can open up more opportunities for scammers to strike. Fortunately, protecting yourself online is simple and effective.

Following these tips can help you stay safe online:

• Avoid public Wi-Fi. Use a virtual private network (VPN) if you have to use public Wi-Fi.
• Use secure payment methods, preferably credit cards, with fraud protection. Skip using your debit card if possible.
• Purchase from trustworthy sites.
• Be wary of unsolicited contact.
• Don’t share personal information via text or email.
• Monitor your bank accounts and statements as your first defense against identity theft. Consider enabling alerts to detect unauthorized charges quickly.
• Use strong, unique passwords, and keep them straight using a password manager.
• Enable two-factor or multi-factor authentication when possible.
• Make sure your software is updated.
• Invest in top-notch identity theft protection.

I was scammed: What’s my next step?

If you’re the victim of a scam, don’t panic. There are steps to mitigate the damaging consequences of identity theft and stop the scammer, but you need to act quickly.

1. Call your bank and credit card companies immediately. Tell them you’ve been involved in a scam and ask for the fraud department. They can freeze your accounts to prevent further charges, and they may be able to reverse other fraudulent charges.
2. Change your passwords. Update your passwords for your online accounts, especially those for your banking and email.
3. Place a fraud alert. Contact the major credit bureaus (Equifax, TransUnion, or Experian) and request a fraud alert and credit freeze. This will prevent scammers from opening new accounts with your information.
4. File a report with the FTC and your local police department. The Federal Trade Commission can document the scam and help protect future victims. Your bank may require a police report for their investigation.
5. Subscribe to identity theft protection. Identity theft protection can monitor your personal, sensitive information online, such as your Social Security number, bank account information, identifying numbers, and any attempts to use your information.

Best identity theft protection services

Identity theft protection can help you recover from — or even prevent — identity theft by monitoring your personal information and alerting you to suspicious activity.

If you’re a victim of fraud, it’s not too late to invest in quality identity theft protection. Having a service constantly scanning for your information can help prevent further damage.

• Aura: Aura monitors credit, Social Security numbers, home and auto title, criminal and court records, and up to $1 million in identity theft insurance. It also provides identity restoration services and extra features, like parental controls and cyberbullying alerts.
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• Norton LifeLock: Norton LifeLock provides up to $3 million in coverage, as well as financial, identity, credit, dark web, home title, and social media monitoring. LifeLock also offers data removal services, which is an added bonus.

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• IdentityGuard: This budget-friendly protection offers basic features like dark web alerts and safe browsing but still provides $1 million in identity theft protection. The downside to this affordable option is that it doesn’t include any credit features.

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FAQs

Bottom line

Online shopping makes checking everyone off your gift list much easier but also opens you up to falling victim to holiday fraud. Staying vigilant while shopping, practicing good online habits, and investing in one of the best identity theft protection services can help keep you safe through the holidays.