The holidays are a magical time, but unfortunately, not everyone is so jolly this time of year. In a season when people are spending money, rushing to buy gifts and relying on online transactions, scammers can have a merry season.
The FBI and other government entities have released recommendations to help consumers avoid scams. So, what should you look out for? How can you avoid getting ripped off this holiday season?
We’ve got you covered: follow these five tips to avoid falling victim to scammers as you go about your holiday business.
1) Verify legitimacy of online retailers.
When buying from a website you’ve never visited before, scan it to see how legitimate it is. In many cases, you actually can judge a book by its cover — fraudulent websites often look, well, fraudulent. But sometimes they do a good job of passing off as real. Use Google to find reviews of the site and check out what people say about it on sites like Reddit.
If you’re buying from a third-party site like eBay or Etsy, check the seller’s reviews. Often, the reviews are flooded with positive ratings, which are helpful, but filter the reviews to single out the one-star ones, too. We’re not saying you’ll have a bad experience with a highly-praised seller — but check out what went wrong for others, so you can see what a worst-case scenario might look like for you, too.
2) Ignore Texts About Packages
There is one caveat to this rule: if you signed up for text alerts for a specific package, the texts may be legitimate. However, most of the time, these are phishing scams that want you to click a harmful link and/or give out personal information. The U.S. Postal Service won’t send you links even if you did sign up for alerts; they’ll just send updates about the package. UPS may send links, but the link will always lead you to UPS.com. Anything else is a scam! If you do get a text like this, report and block the number on your phone.
3) Never Wire Money Directly
When buying something online — whether it’s from an Amazon seller, a large page on eBay or a small seller on DePop — always use the payment mechanisms included on the site or in the app. This ensures that if there is an instance of fraud, the site will help you resolve it. As soon as you send money through Paypal or Apple Cash outside of the boundaries of the website, your protection is gone. Sellers who are looking to defraud people are known to say things like the app or site payment method isn’t working for them, so you have to send the money directly — this should set off alarm bells!
4) Sign for packages
If a gift is expensive, you may want to choose an option that lets you sign for the package. Package theft is all-too-common, and no matter what neighborhood you live in, or the size and appearance of the package. When drivers drop off a package, they often leave it in a prominent location that leaves it in prime position for a passerby with sticky fingers.
If you can’t be home to sign for a package, you can also request special delivery instructions, such as having the driver leave the package on your back porch (if you have one) or maybe around the side of your house. If you’re in an apartment complex, this might be tricky!
5) Be Wary of Gift Card Scams
There are a number of scams that target those who buy gift cards. Sometimes, fraudsters will ask you to pay using a gift card and then use the card info to drain the account without ever sending the item. Another common trick is to steal gift cards off the store rack, get the numbers, and then put the cards back on the rack. The criminal then waits until someone purchases the card legally and loads money onto it, stealing the funds before the money can be spent.
If you can, opt for another gift. If a gift card is necessary for whatever reason, look at the card carefully to ensure it hasn’t been trifled with. Also, avoid digital gift cards at all costs. As Jennifer Pitt, a senior fraud and security analyst at Javelin Strategy & Research, told AARP in a recent article, “Right now, it’s too hard to tell which ones aren’t legitimate.”
This time of year can be so wonderful. Why let a scam dampen the holiday mood? Practice good financial diligence and protect yourself from fraud!
