The holiday season is here, and while it's a time for spending on gifts, food, and more, you don't want to lose money to scams. Sadly, many people fall victim to holiday frauds, like nondelivery and nonpayment crimes, which can be costly. In 2021 alone, these scams resulted in losses of over $337 million, with credit card fraud adding another $173 million.

Nondelivery scams happen when you pay but don't get your items, or your payment doesn't reach where it's supposed to. Nonpayment scams are when goods are sent or services provided, but the payment never comes.

We're diving into five common holiday scams in this article, so you know what to watch out for and how to stay safe.

Online shopping scams are always a risk, but they become more frequent during the holiday season, especially around Black Friday and Cyber Monday when web transactions soar.

1. Keep Your Holiday Deliveries Safe

With billions of packages sent during the holidays, online scammers are finding ways to steal not just joy, but also money from shippers and receivers. Watch out for these package-related scams:

  • Texts or emails asking you to click a link for package tracking, delivery updates, changing drop-off instructions, altering payment methods or delivery dates, or paying a shipping fee.
  • Messages urging you to call a number about an urgent delivery issue.
  • A 'missed delivery' note at your door asking you to call a specific number.
  • Any suspicious messages from merchants or shippers with urgent tones, misspellings, errors, and incorrect logos.
Tip: Always refer to your original orders for tracking numbers and monitor them regularly. If you get a message about a missed delivery, delivery issues, or needing to update information or pay a fee, avoid clicking any links or calling the provided number.

Clicking on a suspicious link might install malware, letting scammers steal your personal info. Similarly, those 'customer service reps' on the phone might be fraudsters after your money.

Instead, directly contact the shipping company or retailer using their official number, or check your delivery status on trusted websites like UPS.com, USPS.com, or FedEx.com, not through the contact details in the suspicious message.

2. Watch Out for Suspicious Gift Card Requests and Offers

The Federal Trade Commission (FTC) warns that gift cards are often used in scams. Be cautious of these types of fraud:

  • Messages claiming you owe money to an agency like the IRS or a utility company, asking for payment via gift cards.
  • Messages pretending to be a family member in need of help, asking for gift cards.
  • Messages saying you've won free gift cards but asking for personal information, or asking for gift card donations for fake charity fundraisers.
Tip: Remember, no real government agency, utility company, charity, or business will ask for payments in gift cards. Getting such a request is a clear warning sign. If a friend or family member asks for gift cards, double-check with them directly. Also, contact charities or companies yourself to confirm if offers for gift cards or fundraising requests are genuine.

If a message seems too good to be true, it probably is.

3. Avoid Social Media Gift Exchange Scams

The Secret Santa you do with friends or colleagues is fun, but beware of 'gift exchanges' on social media. These are often illegal pyramid schemes. They ask for personal details and urge you to send gifts to others, promising great returns. But not only might you not get any gifts in return, you also risk scamming or identity theft for you and your friends.

Tip: Avoid participating in large or 'secret' gift exchanges on social media. If you come across these, report them to the social media platform and the Better Business Bureau®.

4. Be Cautious with Temporary Job Offers

Many real businesses hire extra staff for the holiday rush, but scammers also target seasonal job hunters.

Be wary of job listings that:

  • Ask for money for applying, training, or supplies.
  • Offer high pay for easy or basic tasks.
  • Demand free work initially as a 'test' of your skills.
Tip: Whenever you can, apply for seasonal jobs at local businesses you're familiar with. Stay away from job offers that promise high pay for little work, ask for payments for supplies or training, or require you to work for free initially as a way to 'prove your worth'

5. Check Before You Donate

The holiday season often inspires extra generosity towards charities and causes. However, be cautious as criminals may exploit this kindness. They often use urgent emails, texts, voicemails, or social media messages, asking for donations in unusual ways – like gift cards, wire transfers, or cryptocurrency.

Tip: To steer clear of fraudulent charity schemes, always research the organization before donating. Websites like Charity Navigator are helpful for this. If you get an unexpected fundraising request, reach out to the charity directly. Stick to traditional payment methods like credit cards, which often have fraud protection, instead of nontraditional ones.

Make Sure to Verify Businesses and Charities for Scams

Keep yourself safe by confirming the legitimacy of organizations and spotting potential scams through these resources:

  • The FTC: Check their scam alert page for regular updates. You can also sign up for email updates to stay informed about new scams.
  • Charity Navigator: This nonprofit assesses charities based on financial health, accountability, and transparency, offering insights into how donations are utilized.
  • The Better Business Bureau (BBB): Use their database to stay aware of scams and check the legitimacy of a business by searching for its name on the BBB's homepage.

What to Do If You Suspect a Scam

We hope you stay safe from scams this holiday season. But if you do fall victim to one, or think you might have, here’s what you can do:

  • Report the scam to your local law enforcement and file a complaint with the FBI, especially for large losses or if your personal information is at risk.
  • Consider freezing your credit reports to block scammers from opening accounts under your name.
  • Notify your banks and credit institutions to watch for strange transactions. They might even help recover your funds.
  • Lastly, file a complaint with the FTC to help prevent others from falling for similar scams.

 

According to the FBI, the two most prevalent holiday scams are nondelivery and nonpayment crimes.