As holiday shopping picks up, consumers are expected to spend billions on gifts, including a significant amount online. Unfortunately, with this surge in shopping activity, scammers are also looking to cash in by tricking unsuspecting buyers into fraudulent transactions or gaining access to their personal funds.
Scammers tend to take advantage of the holiday rush, knowing that many people are busy and may not be as cautious. Margarita Alvarez, Senior Vice President of Consumer Risk Programs at Wells Fargo, explains that the high volume of transactions makes it easier for fraudsters to target consumers who may be distracted.
Billions Lost to Scams Every Year
Recent data from the Global Anti-Scam Alliance revealed that scammers have stolen more than $1 trillion from victims worldwide. However, the actual number is likely higher as many victims feel too embarrassed to report the crime. In the U.S., the Federal Trade Commission reports that consumers lost over $10 billion to fraud in 2023 alone.
The Better Business Bureau (BBB) has also seen a sharp increase in scam reports, particularly those targeting holiday shoppers. Scams involving fake advertisements for deep discounts or hard-to-find products have been especially rampant. According to the BBB, online purchase scams are one of the most common forms of fraud, with over 80% of scam reports involving financial losses.
In addition, porch piracy—the theft of packages from doorsteps—continues to be a growing issue. A recent CNET report found that nearly $97 billion worth of packages are at risk of theft this holiday season. Nearly 1 in 6 U.S. adults have already fallen victim to this type of crime, while many others are taking extra precautions, like using package tracking and home security cameras.
Common Holiday Scams and How to Protect Yourself
To help you stay safe while shopping this season, here are some common holiday scams to watch out for, along with expert advice on how to avoid them:
- The “Hot Toy” Scam: Scammers target parents searching for popular toys with fake links to tempting offers. Always shop from reputable retailers and avoid clicking on unsolicited emails or ads, recommends Alvarez from Wells Fargo.
- Fake Package Tracking Notifications: Be cautious of unsolicited texts or emails claiming to help you “track” your package or resolve an issue with a “lost” shipment. These could be attempts to steal your information.
- Fake Charities: Scammers know people are more likely to donate during the holidays. Research any charity you plan to donate to, ensuring it’s legitimate before handing over any money.
- Holiday Job Scams: With the increase in seasonal jobs, scammers may offer fake positions to steal your personal details or money. Be wary of job offers that sound too good to be true.
- Gift Card Scams: Avoid purchasing gift cards from third-party websites, as scammers may sell expired or invalid cards. Don’t respond to unsolicited emails or texts offering gift cards, as they could be trying to track your online activity.
- “Friendly” Messages on Social Media: Scammers often try to establish a friendly rapport with you online before asking for money. Be careful about accepting messages from unknown contacts and never send money to someone you don’t trust.
- Deals That Seem Too Good to Be True: Scammers often lure shoppers with unbelievable offers or deeply discounted products. If something sounds too good to be true, it probably is. Always compare prices and check the legitimacy of the offer before purchasing.
- Fake Websites: Fraudsters often create websites that look like well-known online stores. Double-check the URL for spelling variations and make sure the website is secure (look for “https” and a padlock icon in the address bar).
- Use Secure Payment Methods: When shopping online, use a credit card rather than a debit card or peer-to-peer payment app. Credit cards offer better protection against fraud, according to Feedzai.
- Fake Reviews and Testimonials: Scammers use AI to create fake reviews. Always do your own research and seek reviews from trusted sources before making a purchase.
- Payment App Scams: Scammers may impersonate your bank or credit card company, claiming there is fraud on your account. They may ask you to transfer money to “protect” your funds, but the account is actually controlled by the scammer. Always verify any communication you receive from financial institutions.
- Account Takeovers: Keep an eye on your accounts for any unusual activity, such as unexpected orders or changes to shipping addresses. Account takeovers often involve scammers accessing your accounts to make unauthorized purchases or transfers.
- Avoid Public Wi-Fi When Shopping: Fraudsters can exploit unsecured public Wi-Fi networks to steal your personal information. Always use a secure, private connection when shopping online.
By being aware of these common scams and taking proactive steps to protect your personal and financial information, you can enjoy a safer holiday shopping experience.
