The holiday season is a time for cheer and giving, but it’s also a peak season for financial scams.
A Norton Cyber Safety Insights Report revealed that nearly half (48%) of U.S. consumers were targeted by online shopping scams during the holidays. With so much going on, it’s easy to become a target. We’ll shine a light on common holiday scams and equip you with tips to protect yourself and your family from fraud.
Common holiday financial scams
Scammers get creative, especially during the holidays. They take advantage of the busy, often emotional time of year, to try and get your money or personal information. Knowing these common scams is your first line of defense:
Online shopping scams
Be wary of fake websites designed to look like real stores, or phishing links sent in emails that steal your information. Some scams involve taking your money but never delivering the items, or sending you cheap fakes. Watch out for deals that seem “too good to be true” – they usually are. Also, be careful with fake shipping notifications that try to get you to click on malicious links.
Charity scams
The spirit of giving can be exploited. Scammers might pretend to be legitimate charities, especially after natural disasters or during major giving seasons. They often pressure you to donate quickly or send unsolicited requests through email, phone calls, or social media. Always verify a charity directly before donating.
Gift card Scams
These can happen in a few ways. Some criminals tamper with gift cards in stores, stealing the funds after you load them. Others will demand payment for a fake service or prize using gift cards, which are nearly impossible to trace once the money is gone.
Delivery and package scams
You might get fake text messages or emails with malicious tracking links that look like they’re from major delivery services like FedEx, UPS, or USPS. Another common trick is a “missed delivery” notification that asks for personal information or a small payment to reschedule.
Holiday Job Scams
If you’re looking for extra holiday cash, be cautious. Some scammers offer fake temporary jobs, often asking for upfront fees for training or background checks, or trying to collect your personal information for identity theft. These “phantom jobs” never actually exist.
Social media scams
Watch out for fake contests or giveaways that ask for your personal data. “Secret Santa” or pyramid schemes that promise big returns for a small gift are also common. And be extra careful if a friend or family member suddenly messages you asking for money – their account might have been hacked.
Tech support scams
With new devices being gifted, these scams often target new users. You might see pop-up messages claiming your new device has a virus, or get unsolicited calls from “tech support” asking for remote access to your computer or demanding payment for fake services.
Pig butchering scams
These are typically investment scams often start on dating apps, social media, or even “wrong number” texts. Scammers spend weeks or months building a trusting relationship (sometimes romantic), then convince you to invest in fake cryptocurrency platforms or other bogus opportunities. They’ll show you fake profits to encourage more investment, but you’ll never be able to withdraw your money.
How to stay vigilant
Knowing about scams is half the battle; the other half is knowing how to protect yourself. Here are strategies to stay vigilant, especially during the busy holiday season.
Always confirm legitimacy
Independently verify charities using reputable sites like Charity Navigator or the BBB Wise Giving Alliance instead of clicking email links. Double-check website addresses (URLs) and sender emails for any odd spellings before clicking. If you receive a suspicious call or message, call the company back directly using an official number found on their official website or a bill, not a number they provided.
Make your online transactions safer
Use strong, unique passwords for all accounts; a password manager can help. Only shop on reputable, secure websites—always look for “https://” and the padlock icon. Whenever possible, use a credit card for online purchases, as they offer better fraud protection than debit cards. Finally, avoid using public Wi-Fi for any financial transactions, as these networks are often unsecured.
Be very careful about what you share
Never share sensitive details like your Social Security Number, bank account numbers, or passwords in response to unsolicited requests. Also, be extremely cautious if anyone asks for payment using unusual methods like gift cards, wire transfers, or cryptocurrency – these are major red flags for scams and identity theft attempts.
Beware of urgency and pressure
Scammers thrive on urgency and threats. If someone pushes you to act immediately or warns of severe consequences, take a step back and think. Legitimate organizations rarely demand instant action. Always remember the golden rule: if it sounds too good to be true, it probably is.
Monitor your accounts
Regularly check your bank and credit card statements for any suspicious or unauthorized activity. For added security, set up transaction alerts through your bank so you’re immediately notified of purchases or withdrawals.
Educate yourself and loved ones
Share scam warnings with your family members, especially seniors who are frequently targeted. Stay updated on new scam tactics by following consumer protection alerts from organizations like the FTC or your bank.
What to do if you’re scammed
Even if you’re careful, scams can happen. If you think you’ve been scammed, acting fast is key to limiting any damage.
First, act quickly. Call your bank or credit card company right away. They can help you stop suspicious transactions and protect your accounts. Also, change the passwords for any online accounts that might have been affected, like your email or banking apps.
Next, report the scam. This helps authorities warn others. You can report it to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov. For internet-related scams, also tell the FBI’s Internet Crime Complaint Center (IC3). If you lost a lot of money, contact local police. And finally, let any companies involved know, like the social media site where the scam started.
Final thoughts
The holidays are all about joy and connection. While staying safe from scams is important, don’t let it overshadow the fun. A little awareness goes a long way. By knowing the common tricks and taking simple steps to protect yourself, you can enjoy the season to the fullest. Be smart, stay secure, and embrace the good times ahead.
