How to Avoid Scams this Holiday Season
Published by
AllSouth Federal Credit Union
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The holiday season is a time full of giving and goodwill. However, it's also a time when scammers increase their schemes. Holiday scams take advantage of the rise in online shopping, traveling, and charitable giving. According to a 2023 study by the AARP, 80 percent of U.S. consumers have experienced or been targeted by at least one form of fraud, which is particularly common during the holidays. These scams include fake charity requests, online shopping, and fraudulent delivery notifications.
The last thing you want during the holiday season is to fall victim to a scam and dampen your holiday cheer. We'll cover the most common scams of the holiday season and how to protect yourself in the new year.
Common Scams:
Package Delivery. With the increase in online shopping, one of the most common scams during the holiday season is fake package delivery notification scams. Scammers will try to persuade you to share personal information to "confirm" your purchase or pay an additional delivery charge. These scams typically come in the form of phishing emails or text messages disguised as UPS, FedEx, or the U.S. Postal Service.
Gift Cards. Gift cards are a favorite target for scammers because they are easy to purchase and hard to trace or refund. Many holiday scams involve the sale of fraudulent gift cards or attempts to trick you into sharing the numbers on the back of the card. Be cautious of online stores or ads that claim to sell commercial gift cards at heavily discounted prices. Also, make sure the gift card you're buying hasn't been tampered with.
Fake Charities. Cybercriminals exploit consumers' generosity through fraudulent charities during the holidays. Always verify an organization's website to find a legitimate phone number or online donation option before sending money. If you are unsure about a charitable organization, use websites like Charity Navigator and CharityWatch.
Fake Online Stores or Lookalike Stores. Scammers may create websites similar to genuine ones to steal your account information. These lookalike stores will have similar branding down to the logo and font. They often advertise on social media, then take you to the fake website when you click the link. If prices seem too good to be true, they probably are. Double-check the website address and verify that you are using a legitimate website.
Travel. Beware of criminals who send scam emails and texts offering fake promotions, such as free flights, to get you to share your credit card information or click on links that may download malware. Also, be cautious of spoofed websites that pretend to be legitimate hotels, airlines, or other travel-related businesses.
Imposters. Watch out for scammers pretending to be someone you trust in order to trick you into sharing personal information or sending them money. They might contact you via phone, text, or email and try to deceive you by claiming to be someone in authority or someone you know.
Stay Safe this Season and Beyond:
There are a few precautions you can take to avoid falling victim to identity theft or fraud this season. Here are some tips to help you avoid falling victim to identity theft or fraud:
- Avoid using public Wi-Fi.
- Never click on unsolicited links.
- Change your passwords immediately if you think your information has been compromised.
- Regularly check your accounts online and review your financial statements to catch unauthorized charges. Contact your financial institution immediately if you suspect your account has been compromised.
- File a complaint with the Federal Trade Commission to report the scam.
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Security