The Shopping Season Brings Out The Holiday Fraud.
The Holiday season is upon us! It’s a time to be thankful and spend time with friends and loved ones. Unfortunately, it also brings an uptick in scams and fraudulent activities that prey on the goodwill of unsuspecting individuals. While we gather with friends and family to celebrate, it's essential to remain vigilant against the tactics employed by fraudsters who exploit this festive time to steal sensitive information and hard-earned money.
From phishing emails masquerading as holiday promotions to fake charities seeking donations, the risks are real and ever-present. In this article, we'll explore the most common scams targeting consumers during the holidays and provide you with actionable tips to safeguard yourself and your loved ones from falling victim to these deceitful schemes.
Zelle® Scams
Scammers may send texts, emails or call you impersonating Smart Financial to trick you into sharing personal information like login credentials or account numbers. They may tell you that a transaction is on hold pending authorization or that your credentials are needed to unlock your account after a suspicious login attempt. Smart Financial will never contact you unsolicited and ask you to verify your account, provide security information, nor ask you to use Zelle® to transfer funds. When in doubt, call Smart Financial directly at 713-850-1600 to confirm.
Phishing Emails
Phishing emails are a significant concern for online shoppers, often disguised as legitimate messages from trusted companies. These emails trick recipients into revealing sensitive information, such as passwords or credit card numbers. If they get sensitive information like passwords and account number information, they could get access to your email, bank, or other accounts. Or they could sell your information to other scammers. Scammers launch thousands of phishing attacks like these every day — and they’re often successful. Always verify the sender's authenticity and avoid clicking on suspicious links. For example, a phishing email may claim there's a problem with your account and ask you to confirm personal details. If in doubt, contact the company directly using a verified phone number.
If you get an email or a text message that asks you to click on a link or open an attachment, answer this question: Do I have an account with the company or know the person who contacted me? If the answer is “No,” it could be a phishing scam. If the answer is “Yes,” contact the company using a phone number or website you know is real — not the information in the email. Attachments and links might install harmful malware. These emails often look legitimate as they attempt to mimic familiar companies or services. Scammers are hoping you won’t notice that these are fake.
Signs of a phishing email:
Fake Shopping Sites
Fake shopping sites mimic legitimate retailers, luring consumers with unbelievable deals on branded goods. To protect yourself, research the company and look for secure payment options. Signs of fake sites may include poor grammar, low quality images, and missing contact information. Always check user reviews on platforms like Trustpilot before making a purchase.
Tips for spotting fake online stores:
Fake Charities
Scammers exploit holiday generosity by creating fake charities. They often pressure you to donate quickly and may ask for cash or gift cards. To avoid falling for these scams, verify the charity's credentials with organizations like Charity Navigator and never share personal information over the phone. Take your time to research before donating.
Social Media Scams
Social media has become commonplace and prevalent in today’s society. Because of that, social media is a breeding ground for scammers.
Here are some common social media scams to be aware of:
- Social Media Phishing
Scammers often impersonate friends or reputable companies through direct messages, creating a sense of urgency to trick victims into clicking malicious links. These links lead to fake login pages designed to steal your credentials. Always verify the sender's identity and avoid clicking suspicious links.
- Quizzes or Personality Tests
Quizzes and personality tests are prevalent on social media, providing what seems harmless fun to pass the time or discover new things about yourself. While seemingly harmless, these quizzes often request access to your profile information or even tricking you into answering security questions. Be cautious and avoid sharing personal details and permissions with tests that seem unnecessary.
- Fake Giveaways and Contests
People love winning free things—and companies have used that to their advantage by providing giveaways and conducting contests on social media. But they’re not the only ones— scammers mimic legitimate giveaways, asking for personal information in exchange for prizes. Remember that genuine giveaways will always be conducted through a company’s official channels—and they won’t ask you for sensitive information to participate.
- Impersonation of Family and Friends
Scammers create fake profiles to pose as your loved ones, often claiming emergencies and seeking financial help. Always confirm the identity of the person before offering assistance through other communication methods.
- Get-Rich-Quick Investment Schemes
Scammers can use fake testimonials and manipulated images to pretend to be a legitimate investment opportunity and lure you in with a promise of high returns for minimal investment. To protect yourself from this, remember one thing: If an investment opportunity sounds too good to be true, it probably is.
- Romance Scams
Due to the popularity of online dating, it’s easier for scammers to fake a romantic relationship with a victim to gain trust and, ultimately, harvest financial assistance. To protect yourself from romance scams, be wary of online relationships, especially if the person quickly professes love or asks for money.
- Job Offer Scams
Work-from-home setups are popular and common these days, with so many office employees actively seeking remote jobs instead of office work. Scammers exploit the demand for remote work by offering attractive job opportunities that require personal information or upfront fees. Remember that legitimate employees, online or otherwise, will never ask for payment from you as a condition for employment.
Gift Card Scams
Gift card scams are increasingly common, with thousands of reports filed each year. According to the U.S. Federal Trade Commission (FTC), they received nearly 50,000 reports of gift card fraud in 2022. Those losses racked up more than $250 million. Through September 2023, the BBB and FTC reported a 50% increase in cases of gift card scams over the same period in 2022.
Here are the most common gift card scams to be aware of:
- Payment scams
Here, gift card scams take their classic form. A scammer asks for payment with a gift card rather than a payment method a victim can contest, such as a credit card. When victims realize they’ve been scammed, they have no way of getting their money back. We do not recommend paying for goods, services or debt with a gift card in lieu of a credit card. Remember that gift cards are for gifts, never for payments.
- Bogus balance-checking sites
These phishing sites lure victims into entering gift card information, which scammers then exploit. Always check balances through the retailer's official website or app.
- Gift card tampering
Organized crime rackets steal gift cards from stores and then restock them on shelves — only after they’ve scanned the barcodes and pin numbers or altered them in some way. When a victim purchases and activates the card, the crooks launder the money and leave the victim with an empty card. Look for signs of tampering, such as altered packaging or exposed PINs, and consider buying cards from behind the counter to reduce risk. Always keep your receipt for reference.
Fake Deals and Coupons
Fake deals and coupons are common holiday scams. Scammers create fraudulent websites offering unbelievable discounts on items like electronics and clothing, but they never deliver after taking payment. Always research companies before purchasing and be cautious of "too good to be true" offers. Coupon scams may involve fake coupons in exchange for contact information, leading to spam or malicious use of your data, and risk of exposing your computer to viruses.
How Do I Know What’s Fake And What’s Not?
Package Delivery Scams
With the Holiday season comes packages and more packages! It’s not surprising that cybercriminals have concocted several schemes related to package deliveries, like these:
- Delivery text messages
One common scam involves receiving texts or emails prompting you to click a link for various reasons, such as tracking your package or paying shipping fees. These messages may appear urgent and often mimic legitimate shipping companies' logos so it’s easy to get duped especially during the hectic holidays. Clicking the link can lead to malware infections or phishing attempts for personal information. If you receive such messages, visit the shipper's official website directly using a browser, or call a verified number for information.
- Missed Package Scams
Who doesn’t hate missing a package delivery? Have you received a text message saying your package cannot be delivered? And then, thought to yourself ... “what package?” Cybercriminals know this so they’ve created a scam that involves leaving a note on your door claiming to have a package for you that couldn’t be delivered, urging you to call a number to reschedule. This can lead to requests for personal information that scammers can exploit. Always verify missed delivery notices by checking your recent orders and contacting the delivery company through their official channels, not the number on the note.
Fraudulent texts may also claim you have an undelivered package or offer gifts in exchange for personal information. These often link to fake websites that look legitimate but ultimately seek your sensitive data.
To avoid falling victim to these scams, ask yourself if you were expecting a delivery, avoid clicking suspicious links, and do not respond to unsolicited messages. Legitimate companies won’t request additional fees unexpectedly, and always look out for official missed delivery notices.
Avoiding a fake shipping scam:
While it may seem overwhelming to consider the variety and intensity of scams during the holidays, consider following these golden rules to safeguard yourself from scams this holiday season:
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Slow down and think critically about urgent requests.
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Verify communications by checking official websites, not provided links or numbers.
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Never share personal information unless you can confirm the legitimacy of the request. Even, then, contact the company directly to be sure. Remember, no company or financial institution will ask for personal information through text or email.
Enjoy the holiday season while staying safe from scams!