Fraudsters don’t take holiday breaks, but by being vigilant, you can protect your money, your purchases and your identity from being stolen during the gift-giving season.
Here are some common scams and how to avoid them.
- Ads on social media platforms
- One fast-growing online shopping scheme involves advertisements on social media sites. Over the past couple of years, Americans lost $2.7 billion to social media scams on sites like Facebook and Instagram, according to a recent Federal Trade Commission report. Many of these fraud complaints (44%) involved consumers who purchased a product or service through an ad on a social media site but never received what they bought.
- Solution: Rather than buying a product through the ad on social media, find the company online at its real IP address and see if it’s offering the same item and price as advertised. You can also look for a similar product on a more trusted site like Amazon or at big retailers like Walmart and Target, where you can opt for an in-person pickup.
- Package delivery theft
- Having a package stolen is always a headache but can be especially rough in November and December. About 18% of people polled by Security.org said a package that was stolen from them contained a gift for someone else. Those packages tend to contain more valuable items that may be harder to replace—especially in time for holiday giving, the survey found.
- Solution: Install a security camera in the area where your packages are delivered. It can act as a deterrent and help authorities catch whoever is responsible if they’re taken. If you’re worried about packages sitting outside your home, have parcels delivered to a more secure place like an Amazon locker or your office, or to a friend or family member who can be present for delivery. If the package contains an expensive item, you might also consider paying a bit extra for shipping insurance or to require a signature for delivery.
- Gift card scams
- Gift cards are a convenient way to give during the holidays. Watch for outlandish fees that can add to the purchase price or drain your card’s value. In one common credit card scam, someone claims to be a family member or friend who needs money and insists that you give it to them in the form of a gift card.
- Solution: If someone demands to be paid with a gift card, assume it’s a scam and refuse, the FTC says. When you do purchase gift cards, try to do it in person at your financial institution, a grocery store or another retailer to ensure they are legitimate. But be mindful of the fees. The fee amount should be printed on the packaging, or the retailer should be able to tell you when asked.
- Charity scams
- Americans tend to give more to charities during the holidays, when they are feeling generous, or when they want to get tax deductions before the end of the year. Scammers try to take advantage of this through fake online charities. Some call you by phone to request a donation or thank you for a nonexistent donation and then ask for the payment.
- Solution: It’s best to stick with well-known charities or groups you have successfully donated to in the past. You can also research any charity online through websites like Charity Navigator or use the IRS tax-exempt organization search. Do not give money to anyone who calls unsolicited and demands immediate payment. A legitimate charity will take your contribution at any time. And do not donate money by gift card, cryptocurrency or wire transfer.
- Vacation rental scams
- Travel scams are common during this time of year as families seek out vacation spots to celebrate the holidays together. Fraudsters will post beautiful rental properties online that don’t actually exist or market a “free” vacation that actually comes at a hefty price. Once you show interest, they often try to get you off the app to communicate with them directly and submit payment, reducing traceability so it will be difficult to get your money back.
- Solution: Always book vacations through known travel sites like Expedia, Priceline and VRBO. Keep the conversation and transaction within the app. You can also book your trip with a travel credit card, which offers more protections, and consider travel insurance in case there are delays or cancellations during your trip.[i]
[1] Rachel Witkowski “Season’s Cheatings: Holiday Scams And Ripoffs To Avoid In 2023,” Forbes, Updated: Nov 8, 2023
About AAABC (Area Agency on Aging of Broward County)
Sponsored by the Areawide Council on Aging of Broward County and the Florida Department of Elder Affairs, the Area Agency on Aging of Broward County is the nonprofit umbrella organization charged with the responsibilities of planning, coordinating, monitoring, and funding programs designed to meet the needs of over 476,486 year-round Broward senior residents including an Elder Helpline, Medicare Counseling, Health & Wellness classes and more. As the prime advocate for local Older Americans, the AAABC contracts with administering organizations for the following programs: senior centers; senior day care; site meals; home-delivered meals; Alzheimer’s in-home and facility respite; minor in-home repair; legal; transportation; homemaker personal care; respite; emergency response; and case management. To learn more, please visit https://www.adrcbroward.org.
