Avoid Holiday Fraud and Scams: Tips for a Safe Shopping Season
The holiday season brings joy, gift-giving, and cherished gatherings, but it’s also a time when scams peak as fraudsters seek to exploit the season’s shopping surge. The FBI’s Internet Crime Complaint Center (IC3) received reports from nearly 12,000 victims, resulting in losses exceeding $73 million in 2022 alone.
At Farmers & Merchants Bank, we’re committed to helping you protect your accounts, so here’s a guide to some common holiday scams and ways to stay secure while shopping.
Common Holiday Scams to Watch Out For
1. Phishing Emails and Texts
Phishing scams increase around the holidays, with scammers pretending to be trusted companies or even friends to trick you into sharing personal information. Fake order confirmations, urgent “special deals,” or requests to verify account information are common.
How to Protect Yourself: Be wary of unsolicited emails and texts, and avoid clicking on unknown links. Phishing emails often come from domains that look suspicious. When in doubt, go directly to the company’s official website instead of clicking links in emails.
2. Fake Charity Scams
Scammers often exploit the holiday spirit by creating fake charities, relying on emotional appeals and urgency to rush donations. They might even use familiar-sounding names to make the scam appear legitimate.
How to Protect Yourself: Verify charities before donating using sites like Charity Navigator (www.charitynavigator.org) or the Better Business Bureau’s Wise Giving Alliance (give.org). Legitimate charities won’t pressure you to donate via wire transfer, gift card, or cryptocurrency.
3. Online Shopping Scams
Scammers set up fake online stores or promote products that are in high demand, disappearing after they receive your payment. This is common for hard-to-find items or “exclusive holiday deals.”
How to Protect Yourself: Stick to reputable retailers and check for “https” in the URL. Avoid deals that seem too good to be true, and consider reading customer reviews before making a purchase.
4. Package Delivery Scams
With the increase in online orders, delivery-related scams are also more common. Scammers may send emails or texts pretending to be from a delivery company, claiming there’s an issue with your package.
How to Protect Yourself: Don’t click links in unsolicited delivery notifications. Instead, track your orders directly from the retailer’s website or contact the delivery company’s official support.
5. P2P Payment App Scams
Peer-to-peer (P2P) payment apps like Venmo™, Cash App™, and Zelle® are convenient but also vulnerable to scams. Fraudsters may request payments for goods or services, only to disappear after receiving the funds.
How to Protect Yourself: Only use P2P apps with people you know and trust. Unlike credit card transactions, P2P payments are often irreversible, making it difficult to recover lost funds.
How to Protect Your Accounts from Holiday Scams
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- Use Strong Passwords: Ensure your shopping and banking accounts have strong, unique passwords to protect against unauthorized access.
- Enable Two-Factor Authentication: Two-factor authentication provides extra security for many accounts by requiring a code sent to your phone or email.
- Monitor Your Accounts: Regularly check your bank and credit card statements for unfamiliar transactions.
- Avoid Public Wi-Fi for Shopping: Public Wi-Fi networks are often insecure, so consider using a VPN or personal hotspot when shopping online.
- Use Credit Over Debit: Credit cards generally offer more fraud protection, making it easier to dispute unauthorized charges.
With a little vigilance, you can enjoy a safe and joyful holiday season. Happy holidays from Farmers & Merchants Bank!