Avoid Holiday Scams This Year

Holiday shopping can be risky if you're not careful.

It’s the holiday season and online shopping is ramping up. While it’s convenient and timesaving, shopping online can be risky if you are not careful. Each year, thousands of people become victims of holiday scams when they shop online. Scammers can rob you of hard-earned money, personal information, and (at the very least) a festive mood. Be aware of possible scams and learn how to avoid them.

Most common holiday scams are found in online shopping, emails/texts, and social media.

ONLINE SHOPPING SCAMS

Fake websites are sites that mimic real stores. They offer two types of scams:

1. Non-delivery scam: this occurs when a buyer pays for goods or services they find online, but those items are never received.  
2. Non-payment scam: this scam involves goods or services being shipped, but the seller is never paid.

Other scams include:

• Fraudulent Gift Cards: Scammers might sell fake or used gift cards. Purchase gift cards from trusted retailers and verify the card's balance before use. And only use gift cards as gifts, not as payment for services or goods.
• Fake Travel Deals: Be wary of too-good-to-be-true travel packages or deals. Research travel agencies and websites before making reservations.
• Bogus Vacation Rentals: Scammers may post fake vacation rental listings. Use reputable websites and read reviews before booking.

How to avoid:

• Always buy from reputable and well-known websites. Scrutinize the URL and look for misspelled or incomplete words (e.g., Amazon vs Amzon).
• Check website URLs to verify it's a legitimate, secure site -- and you are where you think you should be.
• Check for misspelled words in web addresses, a hacker’s favorite trick.
• If you are purchasing from a company for the first time, do research on the company and the product; look at reviews and check out their return policy.
• Always verify the legitimacy of a seller or buyer before following through with the transaction.
• Shop and book travel through reputable websites and retailers.

EMAILS AND TEXT MESSAGES

Perhaps the easiest way for cyber criminals to get your info is for you to answer in unsolicited email or text message. It’s easy to mimic a reputable company to make you believe you are giving your info or money to the right person. These scams can include:

• Fraudulent Charities: Be cautious of unsolicited requests for donations. Verify the legitimacy of the charity by checking their official website or contacting them directly.
• Phishing Emails: Scammers may send emails posing as shipping companies, claiming issues with deliveries. Verify such emails by contacting the shipping company directly.
• Malicious E-cards: Avoid clicking on links or downloading attachments from unknown sources, even if they claim to be holiday e-cards.

How to avoid:

• Don't click on suspicious links or attachments in emails, social media, or text messages.
• Be cautious if a company provides a link for you to update your password, that you didn't request.
• Be cautious if the link to an offer or product doesn't look right or it sounds too good to be true.
• Better safe than sorry. Verify the legitimacy of charities before making donations. Know the organization you are donating to.

SOCIAL MEDIA SCAMS

It’s easy for a scammer to manufacture a fake persona or company on social media accounts. Just as easy is to hake into your profile and pretend to be you, so they can reach your friends list. Be aware of these tactics to steal your money and ID:

• Fake Contests: Scammers run fake contests on social media platforms. Be skeptical of contests that require personal information or payment.
• Advertisements for goods sold on a fake website (see above).
• Click-bait posts: Clicking on a link to see the rest of the story and find that hard-to-believe offer, can lead to requests for personal information or plant viruses on your computer.
• Quizzes and polls: Many times, their only intent is to gather information about you and your device or computer.
• Other ways to entice your click through: Sweepstakes and lottery scams, and money-making schemes such as work-at-home opportunities.

How to avoid:

• Set your security and privacy levels on your social media accounts to deter hackers.
• Be sure you're not sharing personal or credit card information over public Wi-Fi.
• Scrutinize any website links to be sure you are going to a genuine site.
• Beware of click-bate links that ask for your personalize information.

BEST PRACTICES TO STAY SAFE

• Never wire money directly to a seller.
• Avoid paying for items with pre-paid gift cards. In this scam scenario, a seller will ask for your gift card number and PIN. Instead of using the gift card for the intended purchase they will steal the funds on the card.
• Use a credit card for shopping online and check your balance and statement regularly. If you see any suspicious transactions, contact your credit card company to dispute the charge.
• Additionally, monitor the shipping progress of your online purchases. Always get tracking numbers for items you buy online so you can follow the delivery process.

The best defense against scams and fraud is to stay Informed. Visit Skyward’s web page on Fraud Prevention to learn about new scams and how to detect them. Remember, if an offer seems too good to be true, it probably is. https://www.skywardcu.com/fraud-prevention

If you encounter a potential scam, report it to the Federal Trade Commission (FTC) at https://reportfraud.ftc.gov/#/