Take Action to Protect Yourself and Your Money
During the holiday season, not everyone is in the spirit of giving. In fact, scammers are known to be more active as people attempt to spread holiday cheer. Below are four common scams and tips to help you avoid falling victim this holiday season.
#1 – Charitable giving scams
Unfortunately, scammers are known to take advantage of people’s generosity during the holiday season. A common strategy is to send emails or make phone calls posing as a representative of a charitable organization. Of course, any money you give them never makes it to the charity.
As you’re making charitable gifts this holiday season, be sure to donate directly to the organization’s official website or via a legitimate phone number. To learn more about how your money is used, consider researching the charity on CharityWatch or Charity Navigator.
Be sure to keep a record of all your charitable donations, including the charity’s name, the date your donation was made and your method of giving. Also, review your financial statements to ensure your donation went to the intended charity for the correct amount.
#2 – Social media scams
Social media scammers tend to up their game during the holiday season. You may encounter social media promotions that offer prizes or gift cards in exchange for completing an online survey. Or you may be promised a prize in exchange for sharing a social media post.
Scammers use these approaches to gain access to your personal information and/or infect your device with malware. It’s important to use caution with offers such as these. Remember, if something sounds too good to be true, it definitely warrants scrutiny.
#3 – Package delivery scams
If you’re like many Americans, you’re currently experiencing a steady stream of package deliveries as you shop for the holidays. It can be difficult to track all your orders. Of course, scammers are aware of this and often try to use it to their advantage.
Scammers are known to send emails or text messages asking you to click on a link to take a certain action, such as track your package’s location, receive an update on the expected delivery date, provide delivery instructions, update your payment information, etc. These messages typically instill a sense of urgency with the goal of getting you to act without thinking. Also, clicking on the link may infect your device with malware, or you may unknowingly provide valuable personal information.
If you receive a package notification, visit the shipper’s website directly to confirm the status of your package. Never provide your credit card number or any personal information, and don’t click on links. If you receive a phone call from an unknown person claiming to be a representative from a delivery service, simply hang up. Don’t fall for it.
#4 – Gift card draining scams
Think you’re avoiding scammers by purchasing a physical gift card? Think again. The latest scam impacting holiday shoppers is called “gift card draining.” Scammers have been stealing gift cards, tampering with them, then returning them to retail stores. When an unsuspecting buyer purchases and activates the card, the scammers are able to transfer funds directly to their own accounts, leaving the buyer with a zero balance.
To avoid falling victim, take time to carefully inspect any gift card before you buy it. Ensure no sticker is covering the bar code and that all packaging is fully intact. Don’t purchase cards that look like they’ve been opened and resealed.
To help reduce the risk of buying a gift card that’s been tampered with, purchase your gift cards directly from trusted online sources. After you’ve purchased a gift card, take the extra step to register it using the registration link provided. Doing so allows you to easily secure your balance and report stolen funds.
What to do if you fall victim to fraud
Unfortunately, fraud happens, especially during the holiday season. If you find yourself a victim, take the following steps to report the fraud and secure your financial information:
- Immediately alert your banks and other financial institutions.
- Notify local law enforcement and your state’s attorney general. You may need to file a police report.
- Contact each of the major credit bureaus (Equifax, Experian, TransUnion) and request that a fraud alert be placed on your file. To do so, you may need to provide proof that you’ve reported the incident to law enforcement.
- File a complaint with the Consumer Financial Protection Bureau.
- File a complaint with the Federal Trade Commission (FTC) or the FBI Internet Crime Compliant Center, if necessary.
- File a complaint with the United States Postal Inspection Service if any fraud-related communication was sent via U.S. mail.
