We’re all on the hunt for the perfect gift this season, but guess what? Scammers are on the hunt too—for their next target. With 75% of Americans falling victim to holiday scams last year, the risk is real. Let’s get into the types of scams making rounds, and how to keep your holidays safe and scam-free.
Holiday Scams Unwrapped
During the holidays, scammers love using online shopping, fake sites, and delivery notifications to fool even the savviest shoppers. Online shopping scams are some of the most common, and they hit hard—resulting in over $281 million lost to fraud last year.
How It Works
- Fake Online Stores: Sites with too-good-to-be-true discounts, poor spelling, and sketchy payment options like Zelle or gift cards. Once you pay, the “store” disappears.
- Social Media Shopping Scams: Especially targeting teens, scammers set up ads on Facebook Marketplace or Instagram with steep discounts. But paying through apps like Cash App or Zelle means there’s no refund if it’s a scam.
- Fake Delivery Notifications: Scammers text you saying a package is delayed or that you need to pay a fee. Real delivery services, like FedEx and UPS, won’t ask for personal info this way.
- Gift Card Scams: These promise discounted gift cards or even claim you “won” a card. Buying gift cards from unknown sources is risky—you might get a worthless card.
Who’s Targeted?
This season, scammers are targeting holiday shoppers of all ages, especially teenagers active on social media. The Federal Trade Commission reports that teens face an 85% higher chance of falling victim to online shopping scams than other age groups.
Real-Life Example
A young shopper recently bought an “exclusive deal” through a Facebook ad, paying via Cash App. After the money was sent, the store vanished. Teens are especially at risk here because they’re more likely to use social media for holiday shopping and to trust trendy online deals.
Why You Should Care
Losing money during the holidays doesn’t just hit the wallet—it’s frustrating and stressful, especially when you’re trying to make the season special for loved ones. Holiday scams also put personal data at risk, potentially leading to more fraud down the road.
Protect Yourself from Holiday Scams
- Avoid Unrealistic Discounts: If it’s over 50% off, be cautious. Check the website and reviews.
- Verify Sites and Ads: Don’t buy through social media ads. Visit the official site of the retailer instead.
- Don’t Fall for Text Scams: Ignore any messages asking for payment to release or track a package.
- Use Secure Payment Methods: Avoid sending money through apps that lack buyer protection, like Zelle or Cash App.
- Only Buy Gift Cards from Reputable Stores: Stick to well-known stores when buying or redeeming gift cards.
Quick Holiday Tips
- Did you know? Legitimate delivery companies won’t ask for money through email or text to release a package.
- Pro Tip: Always go to the company’s official website by typing the address in your browser instead of clicking on suspicious links.
Key Terms Defined
- Online Shopping Scam: A fake store or ad selling non-existent items to trick shoppers into sending money.
- Gift Card Scam: Fraud that offers discounted or “won” gift cards that turn out to be worthless.
- Cash App/Zelle: Payment apps where transactions can’t easily be reversed, making them risky for unknown purchases.
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