14 Holiday Scams and How To Avoid Them

As the holiday season approaches, you may be shopping online and at brick-and-mortar stores to find the perfect gifts for friends and family. While you’re busy preparing for festivities, criminals may be looking for ways to scam you with various tricks. To help prevent cyber-grinches from stealing your money, data, and festive spirit, follow our tips to help spot the most common holiday scams – and always remember to never share your login information with anyone.

Scam #1. Fake charities that steal your money. Scammers use your generosity during the holiday season and create fake charities, GoFundMe campaigns, and other charitable activities. Avoid falling for their tricks by:

• Checking the URL and charity before donating. Scammers often create “lookalike” charities to fool you. Always research charities by using the Better Business Bureau’s Wise Giving Allianceor Charity Navigator. For GoFundMe and similar campaigns, research the organizer or group.

Scam #2. Gift card scams. Especially popular during the holidays, scammers often pretend to be friends or co-workers claiming to be in a difficult situation. They ask you to buy gift cards for them, stating they will reimburse you later. If you get a request like this, always verify that it is legitimate. And when buying gift cards:

• Make sure that they haven’t been tampered with. Run your finger over the back of the card to see if the sticker has been scratched off or replaced.
• Only purchase gift cards from reputable sources. Whenever possible, purchase gift cards from the actual retailer or company and get a receipt so the purchase can be verified if the card is lost or stolen.

Scam #3. Lookalike online stores. Scammers often create fake online stores with deeply discounted prices to trick you into buying from them. If you do, they’ll either steal your credit card number or force you to use payment methods that can’t be reversed (such as wire transfers, payment apps, or gift cards). Always type the URL yourself to help ensure the site is legitimate. These warning signs indicate an online store may be fake:

• They advertise significant discounts (50% off or more) on their items. If an obscure online store offers the best available prices, there’s a good chance it’s a scam.
• The site contains signs of a phishing scam, such as poor spelling and grammar, bad-quality images, and fake-sounding reviews.

Scam #4. Phishing emails or texts from companies that you trust. Scammers often pose as companies or agencies you know. For example, they may impersonate companies like Amazon or Apple to offer “giveaways” or claim to be from your bank, warning you that your account has been compromised. Beware of these warning signs:

• You receive an unsolicited message about a special offer or prize. Treat any email or text message that you didn’t request with caution. These messages also may contain strange spelling grammar, and formatting issues.
• Phishing scams take you to fake websites or infect your device with malware. Never click on a link you weren’t expecting, instead, open your browser and type in the URL or contact the company directly.

Scam #5. Fraudulent seasonal job offers. During the holiday season, scammers prey on people looking to make extra cash by posting fake job listings. In almost all cases, the scammers will either steal your personal information during the “hiring process” or trick you into sending them money for “supplies and training.” Always try to apply for a job directly on the company’s website and watch out for these warning signs:

• You’re offered a job with little to no process.
• You’re pressured to reveal personal information including your Social Security number (SSN), bank account numbers, or tax information.

Scam #6. Fake shipping notifications. It’s common for people to be waiting on packages during the holiday season. Scammers prey on this by sending fake notifications. They may ask you to click on a link to schedule the delivery. Or the message could say that your item is ready to ship, but you need to update your shipping preferences. These scam messages direct you to a fake website designed to steal your personal information, ask for your credit card number, or fool you into sending the scammer money. Proceed with caution if:

• You’re asked to enter sensitive information. FedEx, UPS, and other delivery companies won’t ask for your Social Security or credit card number to “find” your delivery.
• The link in the message takes you to a site that isn’t the official UPS, USPS, or FedEx domain. Always visit the vendor’s website directly to verify shipping.

Scam #7. Grandparent scams. Mainly targeting senior citizens, scammers pose as a grandchild in trouble, asking for money – usually through wire transfers. Red flags include:

• Texts, emails, or phone calls claiming to be from a family member in need, but the sender asks you not to tell anyone else about it.
• Strange-sounding messages. When in doubt, trust your gut and call the family member directly to confirm it’s them.

Scam #8. Social ads promoting fraudulent items. Holiday scammers create ads on social media sites like Instagram and Facebook that link to fake stores or listings. At best, you’ll end up with a phony or counterfeit item. At worst, your money or identity could be stolen. Never assume the site or store is legitimate because you saw it on social media. Instead of clicking on an ad to see the deal, visit the brand’s legitimate website. To avoid being scammed, look for these warning signs:

• The link takes you to an online store that shows signs of being a scam. Be especially careful if it doesn’t include contact information (other than an online form).
• The account that posted the ad has a low follower count.
• The ad promotes a too-good-to-be-true deal on in-demand or luxury products. Retailers rarely offer deep discounts this time of year.

Scam #9. Popular holiday gifts at too-good-to-be-true prices. In the rush to get the season’s most sought-after gifts, many shoppers ignore the warning signs of a scam. Fraudsters often list items on platforms like Facebook Marketplace at a steep discount and then ask you to pay via payment apps (that can’t be reversed). Too-good-to-be-true deals often:

• Offer hot-ticket items at a deep discount.
• Require payment using Zelle, Cash App, or another similar app. These payment methods are like cash. Once you send the scammer money, it’s gone.

Scam #10. Holiday travel and online airfare scams. Many people look for cheap airline tickets over the holiday season, leading scammers to target travelers. If you’re looking for travel deals, steer clear of:

• Websites or marketplace sellers offering airline tickets at a significant discount. Fake travel agencies tout huge deals to try and get you to suspend your suspicions.
• Messages claiming your trip has been canceled and you need to rebook. If you receive any messages about your trip, contact the airline directly to make sure the message is legitimate.

Scam #11. Fake online giveaways and surveys on social media. Scammers use social media to list fake holiday giveaways or surveys that offer gifts and free money. Some fraudsters may even use bot accounts to “like” giveaways, which makes the scam look like the real deal. Always remember to never:

• Provide sensitive information in return for a gift. Be especially cautious if you’re asked for financial information (such as your credit card number) or details about your workplace.
• Pay a fee to receive a “free” gift, prize, or money.

Scam #12. Stolen mail and packages. With deliveries and cards coming to your home throughout the holiday season, porch pirates are unwelcome visitors. These thieves look for cards containing cash or gift cards, and packages they can steal and resell. Even worse, if they steal mail with sensitive information such as your credit card or bank statements, they could steal your identity. To help secure incoming mail and deliveries:

• Sign up for USPS Informed Delivery®, which gives you a preview of your incoming mail and packages, and allows you to control their delivery. For added security, consider investing in a secure mailbox or porch lock box.

Scam #13. Shoulder surfing. This form of theft is when someone looks over your shoulder to steal personal data, such as login details for a bank or credit card account or bank PIN.  Despite its name, shoulder surfing can happen whether someone is standing directly behind you or far away using binoculars, a telescope, or even a video camera. These tips can help keep your information secure from prying eyes:

• Block the view of your screen by standing with your back to a wall. Also, consider using a privacy protector screen. And if you’re using an ATM, position one hand over the keypad to block snooping eyes.
• Don’t access personal accounts or enter personal information in public.
• Be vigilant when handling personal matters over the phone. Just as someone can look over your shoulder to view private information, thieves within earshot can hear it.

Scam #14. Unsafe public Wi-Fi. Using public Wi-Fi networks, or hotspots, in coffee shops, malls, airports, hotels, and other places is convenient, but not always secure. Although most websites use encryption to protect your information, always make sure that your connection is safe by:

• Looking for a lock symbol or “https” in the address bar to the left of the website address.

For additional information on how to shield yourself from cybersecurity threats year-round, what to do if you’re a victim of a data breach or identity theft, and how Mercer Advisors protects your information, read our Insights article – 7 Ways to Shield Yourself From Cybersecurity Threats. If you’re not a client and want to learn more, let’s talk.

¹“2023 Holiday Shopping Scams.” Internet Crime Complaint Center (IC3) | 2023 Holiday Shopping Scams, 15 November 2023.