Common Holiday Scams and How to Avoid Them

While the holidays are a time for merriment and giving, it is also the time of the year when cybercriminals hit the internet in full force. What do you need to know this holiday season so that you do not become a victim? Read on for all of the details.

Common Holiday Scams

According to the American Association for Retired Persons (AARP), approximately 89% of U.S. consumers have either experienced or been targeted by at least one type of fraud connected to the holiday season. This includes requests from fake charities, false claims about shipping issues, and basic online shopping scams.

Scammers know that the holidays make people easy prey when it comes to their trickery. The holidays are an inherently busy time, making people let down their guard and become victims of various scams as they try to navigate all of the events of this season. It is easy to become a victim when you are distracted and not paying attention.

Declined Credit Card Scam

There are a variety of scams that become more prevalent during the holiday season. One of the most common tricks is the declined credit card scam. This happens when an online shopper receives a message detailing that their card has been declined. While the transaction did indeed go through, the scammer is trying to take advantage by asking for another card number, resulting in two charges.

Fake Websites

Americans are also often exploited for their charity during this giving season. Fake websites and other tactics that prey on people's emotions are used to swindle people out of their money.

Although there is no denying the ease of online shopping, the internet opens up a whole new world of scam possibilities. Predators use fake posts and campaigns impersonating popular brands, luring consumers in with lower prices. If a price seems too good to be true, there is a good chance that it is an imposter.

Gift Card Draining

Gift card draining is another scam that is becoming more of an issue. This happens when criminals steal gift cards off store racks, collect the data from the card, and then return it to the rack. Consumers then buy the card, load their money on it, and the criminal can drain it off and use it. This is why experts recommend buying the gift cards that are kept behind the cashier's counter.

Phishing Texts

The increase in packages being sent across the country this time of the year also provides a fertile breeding ground for predators to strike. Scammers use this tactic by sending out phishing texts or emails impersonating major shipping companies such as UPS or FedEx. The fraudulent messages notify the recipients about missed deliveries, prompting the victim to give personal information that can be stolen for other purposes.

Travel Scams

Lastly, travel scams are also a common scam as the holidays approach. The criminal behavior starts as a scam email or text offering a special travel deal, such as a free airline flight. In exchange, the predator asks for credit card information or directs the victim to a link that downloads malware to steal personal data.

How to Protect Yourself from Holiday Scams

The internet is littered with scams. This is why it is vital to only use verified websites when purchasing products. Instead of blindly clicking a link from an email or text, go directly to a web browser and manually type in the company name.

Paying by credit card is another good way to protect yourself from fraud. It is far easier to dispute a charge if you have this protection rather than simply being out of cash.

As noted earlier, buying gift cards directly from the cashier limits the number of people who may have handled them and skimmed information. Be sure to save the receipt in case there are issues. Another good idea is to use e-gift cards purchased directly from the retailer's site.

While it is certainly noble to want to give back during the holiday season, it is also important to research any requests for donations. Good resources to vet these organizations include GuideStar, Charity Navigator, and Charity Watch.

Reporting Scams

It is understandable to feel embarrassed if you become a victim of a scam. However, it is important to report all of these crimes so that law enforcement can track down the criminals. The FBI's Internet Crime Complaint Center is a good place to start. While not every complaint will result in an arrest, the information can help investigators to identify trends and make the public aware.

The AARP Fraud Watch Network Helpline is a free service that gives victims the chance to speak with expert fraud specialists who are equipped to offer support and guidance about next steps. This free hotline number is 877-908-3360.

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