Don't Let These 5 Ongoing Scams Ruin Your Holidays

Nearly 8 in 10 Americans are targeted by holiday-related fraud

The holidays are a time of giving—sharing gifts with loved ones and giving back to those less fortunate. But while you’re busy showing generosity towards those around you, make sure you’re not giving away something vital: your privacy and identity.

Scammers are especially active around the holidays, and their fraud attempts affect a majority of people. A survey by AARP found that 78% of U.S. consumers either experienced or were targeted by holiday-related fraud last year.

By arming yourself with knowledge of their tactics, however, you can keep these bad actors from dampening your holiday spirit. Here are five seasonal scams that stubbornly refuse to go away, along with advice on how to avoid them.

The imposter retailer

Fake e-commerce websites, designed to look and feel like legitimate retailers, are as ubiquitous at this time of year as Christmas songs. Fraudsters create these sites to trick you into giving up your money or personal information, or downloading malware onto your device. If you have concerns about whether a site is authentic, carefully check the URL against that of the official retailer it claims to represent. (Scammers deliberately use slight misspellings in URLs to fool people.) The same goes for any message you see—emails, text, social media posts—promoting Black Friday deals that seem too good to be true. Before you click any link, verify the source. For example, if it’s an email, confirm that the sender’s domain address matches that of a legitimate retailer.

The fake delivery notification

Who doesn’t love getting a package delivery notification during the holidays? Maybe someone’s sent you a gift! And if you’ve shipped a gift to someone, surely you’d want to click a tracking notification to confirm it’s on the way. Unless, of course, the notification isn’t real. Scammers, pretending to be legitimate retailers or shipping companies, will send emails or text messages notifying you of package tracking status or delivery. As with imposter retailers mentioned above, be sure to verify any URL or email domain before clicking. If you do click the notification link, watch for red flags: If you’re asked to enter personal information or pay a new fee to receive or guarantee delivery of a package, it’s a scam. If you want to track a package, do so by logging into the online account you have with the retailer.

The sketchy online gift exchange

This gift exchange scam, often called “Secret Sister,” has been floating around social media in various forms for years now. While it seems like a fun online version of Secret Santa, it isn’t. The basic idea is this: You’re asked to send a gift to someone in the gift “chain”; in return you’re promised gifts sent from other participants. In order to join, however, you must provide your personal information as well as that of friends or family, who will be asked to join the group as well. And if you ship a gift to your designated recipient, don’t expect to get any promised gifts in return. It’s all part of an illegal pyramid scheme, and you could even be held liable if you try to recruit others into it. If you see a pitch for a gift exchange like this, don’t engage with it—report it to the social media platform.

The seasonal employment ruse

Many people seek out temporary seasonal employment at this time of year, especially for retail jobs or package shipping and delivery. Scammers try to take advantage of this by posing as legitimate employers. They’re looking to capture the job seeker’s personal data through an application, or to steal their money. Potential red flags in a job search include: an employment offer that promises shockingly high wages; an instant offer of employment without the employer requesting an interview in person or by phone or video; or a demand from the employer that you pay upfront for things like supplies or an application. Even if the job listing appears to be from a company you’ve heard of, think twice about responding. Research the company first. If it’s a legitimate employer, go to their official website and apply there.

The phony donation plea

The holidays are a critical period for charities; many are counting on this time of year for a large percentage of their annual donations. Fraudsters are well aware of this, and try to intercept donations by posing as legitimate nonprofits. Don’t let them ruin your attempt to do a good deed. Use caution regarding any unexpected donation plea you receive by email, text, or social media. Do your homework on a charitable organization by vetting it through a site like Charity Navigator, which evaluates registered 501(c)(3) nonprofits. If the organization isn’t listed, be careful about proceeding; if it’s listed, go directly to the organization’s official website and donate there. When donating, it’s best to use a credit card or check. If the charity demands that you donate by gift card or cryptocurrency, it’s likely a scam.

From your friends at IDX, stay safe out there and enjoy the holiday season.