Fraud During the Holidays

It’s here, Black Friday, Cyber Monday, and all the Hussle and Bussle of the Holidays. I am writing this post to remind everyone that credit card fraud is rampant, especially over holidays. We recently had two cards compromised within 2 days! So, this is a reminder to stay vigilant and keep these points in mind to prevent fraud this Holiday Season.

Check Fraud

The Trap: Fraudsters steal checks from mailboxes or garbage and use everyday household cleaners to wash out the amount and “pay to the order of” line. Next, the fraudster deposits the check usually by ATM into their bank account, but they take out the money immediately. This recently happened to a friend of mine. She mailed a check to her accountant, but it was deposited as a $2,500 payment to a beauty salon. She never spent that much money at a beauty salon in her life! For more on this check out this great article in the WSJ.

How to Protect Yourself: Balance your checkbook monthly. Look at your checking account daily. If something is suspicious, call your bank immediately. And keep fraud to a minimum during the Holidays.

Online Shopping Scams

The Trap: Fake websites and fraudulent sellers offering too-good-to-be true discounts on popular items. These sites often mimic legitimate retailers, luring shoppers. After payment, the item either never arrives or is a counterfeit product.

How to Protect Yourself: Shop only from reputable websites. Look for secure URLs (https://). Verify reviews and check seller’s history. Avoid deals that seem too good to be true.

Gift Card Scams

The Trap 1: There are two traps with gift cards. The first one is purchasing from a local retail store. Check the back of the card to make sure the “PIN” or any claim code on the back has not been taped over or scratched off. If someone has done this, they are waiting for the card to be activated and then will take all the money from the card, particularly over the holidays.

The Trap 2: Scammers ask you to pay for products from online sites such as Ebay, Facebook Marketplace, Offer Up and more. The scammer will ask you to give them a Gift Card as payment, but you will never get the product.

How to Protect Yourself: Always check the back of your gift card to make sure it has not been tampered with. Never pay for services or products with gift cards. Treat requests for gift cards purchases as a red flag. Keep all your gift card receipts and avoid sharing any details of the card codes online to prevent fraud over holidays.

Charity Scams

The Trap: Fraudsters create fake charities or impersonate real ones to exploit your generosity during the holidays. You might receive an email, call, or social media request for a donation. But the funds go to the scammer and not the charity.

How to Protect Yourself: Research the charity before donating. Use sites like charity navigator. Donate directly through the charity’s official website. Be cautious of pressure tactics or urgent pleas for donations. And NEVER give your credit card information to someone who is calling you on the phone to prevent fraud over holidays.

Social Media Scams

The Trap: Fake giveaways or contests that require you to input personal information to “win”. These scams collect your data or lead you to malicious sites. Also, on sites like Instagram or Facebook avoid buying items online.

How to Protect Yourself: Go directly to the official website when purchasing products. Confirm the URL is accurate. Avoid giving anyone your personal information online unless you are confident the site is legitimate.

Final Thoughts: Stay Vigilant This Holiday Season

Fraud over holidays is a real threat, but awareness is your best defense. Check your credit card statements regularly to insure you don’t have fraudulent charges on your account. Recently we had small charges for Mint Mobile and then they started to get larger daily. Luckily, we caught it early and reported the fraud. By staying safe and adopting safe practices, you can enjoy the holiday season without falling victim to scammers. For more tips check out these on the AARP website 15 Identity Protection Tips to Help Prevent Fraud.

Have you encountered a holiday scam? Share your experiences in the comments and help others stay safe! Happy Holidays!