The Most Fraudulent Time of the Year 

Category: Fraud Awareness

By BankSource on 11/22/2024

The festive spirit can often blind people to the risks lurking behind enticing offers and seemingly innocent messages. Awareness is key to protecting yourself and your finances during this vulnerable time. Here’s a closer look at some of the most common holiday scams and how to avoid them.

Charity Scams

The holiday season inspires generosity, but it also attracts scammers looking to exploit kind-hearted individuals. Fake charities often set up look-alike websites or make phone calls soliciting donations. Before contributing, ensure that the charity is legitimate. Verify their credentials and research their reputation to confirm they are not a scam designed to steal your money or personal information.

Social Media Scams

Social media platforms are a hotbed for scams during the holidays. Scammers often create fake giveaways, surveys, or contests that promise gifts, gift cards, or cash in exchange for personal information. Once they obtain your details, they may use them for identity theft or sell them on the dark web.

Another prevalent tactic involves fraudsters posting fake items for sale, only for buyers to pay for products that never arrive. After receiving payment, these scammers often block victims on social media, making recovery nearly impossible.

Pet Scams

During the holidays, pet scams become rampant, often advertising puppies or other pets at unbelievable prices. Scammers lure in unsuspecting buyers with promises of huge discounts on desirable breeds. Watch for red flags such as unusual housing timeframes or claims of no waitlists for puppies. If a deal seems too good to be true, it probably is.

Fraudulent Shipment Links

As online shopping surges during the holidays, scammers take advantage by sending fraudulent links disguised as shipment tracking requests. These links are designed to harvest your login credentials through a technique known as credential harvesting. Avoid clicking on links received via text or email. Instead, visit the retailer’s website directly or use the tracking information provided from a trusted source.

If you receive a suspicious message about an order you didn't make, do not log in through any links provided. This will protect your credentials from falling into the wrong hands.

Impersonation Scams

Scammers often impersonate government agencies such as the DEA or FDIC, threatening victims with arrest or hefty fines unless they pay immediately. These impostors may also pose as family members in distress, using urgency and fear to pressure victims into sending money quickly. Always take a moment to verify any claims made by individuals demanding immediate payment or personal information.

Gift Card Scams

Gift card scams are especially insidious. Scammers may pose as legitimate entities, demanding that victims pay fines or past-due balances exclusively with gift cards. They often use fear tactics to manipulate victims into compliance, instructing them to purchase specific gift card amounts from designated retailers.

Remember, legitimate businesses will never ask for payments in gift cards. If someone demands this method of payment, it’s a clear sign of a scam. Never share gift card codes or send photos of your gift cards, as this will only aid the scammer in stealing your money.

Be aware that many financial institutions may not dispute transactions that you authorized, even if you later realize you’ve been scammed. It’s crucial to remain vigilant and protective of your information throughout the holiday season.

By staying informed and cautious, you can enjoy the holidays without falling prey to scams. Remember to verify information, be skeptical of unbelievable offers, and protect your personal details to keep your celebrations joyful and secure. You can stay on top of your account usage by checking your e-statements regularly.

How to Report:

If you suspect a scammer, you should:

Report to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov.
Report the scammer profile on the app or website where they made contact with you.

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