Top 7 Holiday Season Scams And Ways To Protect Yourself From Them

Almost everyone shops online during the holiday season, searching for gifts and taking advantage of sales. Unfortunately, in the rush to grab a good deal, many shoppers aren't as careful as they should be. In fact, 34% of online shoppers admitted to taking more risks during this time. Additionally, 17% said they would share personal information to secure high-demand, limited-supply items like gifts or toys.

Fraudsters are well aware of this behavior. They constantly devise new schemes, from creating fake websites to sending messages with unbelievable deals, aiming to exploit unsuspecting shoppers.

Staying informed about these scams is crucial for your protection. Here are some common fraud techniques and holiday season scams targeting online shoppers in 2024.

1. Fake Gift Cards

Gift cards are a popular choice for stocking stuffers. The global market for gift cards was valued at $984.31 billion in 2023. Fraudsters take advantage of this by running fake gift card scams.

In most cases, they approach their victims through emails or social media advertisements. Once you make such a purchase, a virtual gift card may be delivered to your email inbox. However, it may not be worth as much as you thought it was or may be completely useless.

2. Charity Fraud

The holiday season also makes people feel generous. Many charities raise up to 50% of their annual revenue in the weeks before Christmas. People donate money to charities not only as a philanthropic act but also as gifts. A donation in someone’s name can be a thoughtful gift for people who already have everything they need.

Most people make donations online since it is more convenient. The trouble is fraudsters often create websites for fake charitable organizations. While you think you’ve donated money to feed homeless children or send medical supplies to poor households, your money is going to criminals.

3. Phishing Scams

When you’re shopping online, receiving messages and emails from your bank detailing the transaction is quite normal. This may be misused by fraudsters. Criminals write messages that look and sound as though they were legitimate emails or SMS.

It may be on behalf of a bank, credit card company, or even a high-end brand. The message may tell you about a special offer that’s valid only for a day, your account being suspended, your card being used for a purchase that you haven’t made and so on.

It’s natural to feel like you have to take urgent action on the message. Trouble starts when you click on a link in the message. Scammers may use your confusion to steal your details. In turn, these details may be used to impersonate you.

4. Travel Scams

Schools and even some offices close down for the holidays. This encourages people to make travel plans. However, flight tickets and hotels can be expensive. So, people look for deals online. This is where they could become susceptible to fraudsters.

Fraudsters often create fake ads for deals on flight tickets, restaurants, hotel stays, etc. They may publish these fake ads on social media platforms, emails, etc. Scammers may also reach out to users directly and promote these deals.

Victims find out that they’ve been scammed only weeks later when they reach the airport or hotel and find out they don’t have valid tickets or a stay booked in the hotel.

5. Fake Giveaways

Everyone loves the thought of getting things for free – fraudsters use this approach to scam people. During the holiday season, criminals create messages promoting a fake giveaway. These scams usually target minors.

When people sign up for the giveaway, they receive a fake message saying they have won the prize. To claim this giveaway, they need to provide personal information. Unfortunately, this may be later used to impersonate the individual.

6.  Lookalike Online Stores

A growing number of online shoppers look for websites where they can make purchases directly from the manufacturer rather than an online marketplace like Amazon. However, independent websites may be easier to fake.

Criminals create websites that look like copies of real websites. Unless you look closely, you may miss out on subtle differences between real and fake websites.

When users interact with these websites, the discounts may push them to make a purchase. As you complete the transaction, the scammers behind the website may steal your credit card details.

7. Missed Delivery Notifications

Shopping online means having to wait for your orders to be delivered. If you aren’t home when an order is being delivered, the delivery agents will send you a text message about the delivery attempt.

A recent scam plays on this by sending fake missed delivery notification messages. They usually include a link to ‘reschedule the delivery’. However, on clicking the link, you will be directed to a fake landing page and form that asks for personal information.

Protecting yourself from holiday season scams

Scammers have no preference for any particular type of online shopper. The less attention you pay to details, the more susceptible you are to holiday season scams. Here are a few things you can do to protect yourself:

• Always shop from secure websites with URLs that start with HTTPS
• Do not click on links in messages and emails from unknown sources
• Research charities before making any donations
• Beware of websites with poor spelling and grammar, low-quality images and missing company information pages
• Track deliveries only through the delivery company’s website

Lastly, remember that any deal that looks too good to be true usually isn’t true.

Summing It UP

Holiday season fraud affects not only shoppers but also the brands that scammers impersonate. This is why businesses worldwide emphasize KYC checks to ensure secure customer interactions. By ensuring only legitimate customers access their platforms, businesses can reduce the risk of fraudsters impersonating customer profiles.

With today's real-time identity verification solutions, businesses can automate this process, protecting both themselves and their customers. Implementing these measures ensures a safer shopping experience, safeguarding your brand's reputation and customer trust.