The holiday season is a time for buying gifts and spending memorable moments with our family and friends. Unfortunately, it’s also a time for avoiding holiday scams, even though the last thing we’re thinking about is becoming the victim of fraud.
Whether you’re ready or not, however, there are scam artists out there waiting to take advantage of unassuming victims who are caught up in the holiday spirit. To decrease your chances of becoming a criminal’s prey, here is a holiday scams list you don’t want to forget.
Donation Scams
1. Fake Charities
‘Tis the season to beware unfamiliar hands knocking on your door or strangers calling and requesting you open your heart–and wallet–for an oh-so-important charity you’ve never heard of before. That’s right–it’s during the holiday season that fake charities open for business, setting up donation scams they hope sentimental holiday lovers will fall for.
There are a number of tips for avoiding holiday scams that involve a fake charity–the Federal Trade Commission (FTC) provides a checklist to avoid charity fraud.
When in doubt, never make a quick decision. Instead, ask for information about the charity in writing before handing over any cash.
Online Scams
2. Spam Solicitations
E-mail has been a popular form of communication for over 15 years as it does an excellent job of delivering written messages in a snap. Unfortunately, not all of the messages you receive in your inbox are for your benefit.
For years, e-mail scams have been a popular way for fraudsters to steal your identity or money. During the holidays, these online scams always increase with the knowledge that people tend to be freer with their cash.
You can expect to see the normal spam e-mails regarding problems with your bank account or winnings you must claim from a lottery game you never played. But also make note of e-mail advertisements stating that you could “earn extra money during the holidays” or ones offering better-than-average deals from retail sites. You’re likely to end up at glossy sites set up to steal your money and personal information.
3. Social Networking Scams
Just as common as becoming the victim of an e-mail solicitation scam during the holidays–or any other time, for that matter–is falling prey to other online scams while participating in social networking.
Identity theft of Facebook and Twitter has become more common. By hacking your account, they can convince your entire list of friends that you’re in trouble and need money. They can even find out enough information about you to determine when you’re gone so they can break into your home.
Adjusting your privacy settings and creating a strong password can help avoid some social networking online scams. Most importantly, however, don’t click on unfamiliar links or add strangers as friends to avoid allowing a scam artist to enter your private world.
4. Online Auction and Classified Site Scams
One of the biggest online scams to avoid is the bogus auction site. Between Black Friday and New Years, you’re likely to see an increase in the number of fake auction sites offering popular items for as cheap as $0.01.
It’s also important proceed with caution on reputable sites like eBay and Craigslist where not-so-reputable members are allowed to sell items. On eBay, always check seller reviews before spending a dime. On Craigslist, work with local sellers and avoid those who require money via wire transfers.
Shopping Scams
5. Stolen Deliveries
A huge scam that has always been common around the holidays is stolen deliveries. Thieves make it their business to ride through neighborhoods during holidays, looking to take packages that are left on homeowners’ and apartment occupants’ doorsteps.
Avoiding holiday scams like having items stolen right from your doorstep is fairly simple: Try using an in-store pickup option as opposed to traditional delivery, setting up delivery that requires a signature or have your package sent to your office instead.
6. Gift Card Scams
Gift card scams have grown significantly over the years as scammers have found more creative ways to take advantage of victims. Two very common ways that scam artists make a killing through gift cards are by creating bogus cards and stealing card information to make purchases online.
Thieves know that gift cards are go-to options for shoppers looking for last-minute presents. They may offer fake or zero-balance gift cards, often through online auctions, and the buyer ends up with nothing.
Scammers also spend time in stores swiping information from gift cards on display in stores. Then they will periodically check to see if they have been purchased and activated. Once they are, thieves quickly use the cards to purchase items online, using up their value before the recipient can.
7. Fake Holiday Lenders
The holiday season is a time when shoppers are more cash-strapped than usual. Some obtain payday loans to pick up quick cash and help pay for last-minute gifts.
If you are considering doing the same, beware of fake holiday lenders who make the promise of easy cash. Website and phone solicitations from lenders who want to “help you out” are much more prevalent, so avoiding holiday scams includes watching out for fraudulent lenders as well.
You should understand that in most cases, however, even legitimate loans will come with monstrous interest fees.
8. The “It” Item Scam
Every year, there is an “it” item that loved ones must have–and shoppers feel the pressure to buy. So to make their family and friends happy, shoppers often find themselves buying cheaper versions at flea markets or other second-hand locations at a discounted price. Usually, these items are knockoffs of the originals and don’t work or unexpectedly fall apart shortly after the purchase.
The pressure to fully participate in the holidays sometimes pushes people to make decisions in haste. There are plenty of thieves out there hoping you are willing to make impulsive moves without thinking your actions through clearly, so be sure to outsmart thieves by avoiding holiday scams at all costs.
