8 holiday scams and how to stop them

John Wilson - Forbes Advisor

These next few weeks are among the busiest of the year for many of us. Given increased shopping and travel, work gatherings and celebrations with family and friends, there’s simply too much to do.

We may not have the time or energy to be hypervigilant about seasonal swindles. And fraudsters are counting on it.

Ho, Ho, Hold On a Minute

The FBI’s Internet Crime Complaint Center (IC3) has been receiving record numbers of complaints each year about fraud schemes targeting consumers. The center says in 2021, Americans lost $173 million to credit card fraud and more than $337 million to nonpayment and nondelivery scams.

These ploys work because we often don’t know what we don’t know. If your brother sends two packages of gifts and only one arrives, you may not know anything is missing. Likewise, if a gift card you sent has been stripped of funds, the recipient may be too embarrassed to tell you.

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8 Holiday Scams and How To Stop Them

Here are the top holiday scams and tips for preventing them based on what I’ve learned in my role as senior fellow for threat research at Fortra’s Agari.

1. The Gift Card Peek Scam

Scammers will take gift cards off the rack, scratch off the silver coating that protects the PIN code, record the code, then carefully apply a new coating in a way that leaves buyers none the wiser.

The perpetrator waits a day or two for the card to be purchased and activated, and the card number and PIN are ready for the scammer to use. The disappointed gift card recipient is left with a dud.

Solution: Carefully examine any gift cards you purchase. Better yet, send e-gift cards directly to recipients from a reputable site.

2. Mail Theft

Sending cash through the mail is still popular. But handwritten addresses and colorful envelopes make it easy for thieves to distinguish personal cards from the sea of junk mail and bills. They’ll steam a card open to look for cash, reseal the envelope and put it back in your mailbox.

Mail theft also happens on a larger scale. There are universal keys that can open any blue post office mailbox as well as keys that unlock entire racks of mailboxes at apartment and condo complexes.

There’s been a rash of these thefts recently because the keys are easy to obtain. Once thieves gain access to the boxes, they not only steal cash, but they can also find credit cards and valuable tidbits of information perfect for identity theft.

Solution: Don’t send cash. Order a cool gift online or send an e-gift card.

3. Package Theft

Bold porch pirates continue to pilfer holiday packages despite the increase in video doorbells. Even when a retailer has sent photo evidence your gift was delivered, it could still go missing before the intended recipient retrieves it.

Solution: Consider a package drop box secured with a key you control. You can also keep an eye on your video doorbell notifications for deliveries and have a neighbor swing by if you’re not home.

4. Counterfeit Goods Scams

An estimated 57% of shoppers will make their purchases online this holiday season, according to research from the accounting giant PwC. You can be sure scammers will be ready, advertising hot deals on well-known brands via social media.

Their websites will look genuine and may even feature the brand’s name in the URL for legitimacy. You or your recipient will probably even receive the goods, but they’ll clearly be cheap knockoffs.

Solution: Buy from reputable sites you trust. If you’re suspicious, do a Google search of the site’s name plus the word “scam” to see what comes up.

5. The ‘Grandchild in Trouble’ Scam

Scammers rely on manipulative social engineering to trick seniors into sending money. They’ll call and pretend to be a grandchild who’s taking a holiday season vacation in Mexico and has been arrested. They want you to post bail and not involve their parents.

Solution: Call the child’s parents to check in. Chances are, the kid in question is safe at home.

6. Vacation Rental Scams

As traveling is on the increase following years of pandemic-related slowdowns, scammers continue to post beautiful rental properties that don’t actually exist. They will try to get you off the app to communicate with them and submit payment, reducing traceability.

Solution: Use trusted apps to book rentals and keep all interactions within the platform.

7. Business Email Compromise (BEC) Scams

Impersonating a company’s executives via email and text message has become quite a boon for fraudsters, resulting in nearly $2.4 billion in losses last year. They rely on urgency and authority to convince you to pay an invoice for the employee holiday party or submit a wire transfer without making sure the ask is legitimate.

Solution: Check in with your “colleague” using a separate channel (phone, Slack, etc.) from the email you received.

8. Charitable Giving Scams

Fraudsters know people are more likely to give to those in need during the holidays. They will use phishing emails and phone-based scams to fleece you.

Solution: Go straight to an organization’s website to make a donation. Don’t use the link in an email.

General Holiday Security Reminders

Holiday scams can be rotten gifts that keep on giving if you’re left dealing with the fallout from identity theft, stolen packages or socially engineered schemes.

The rules of the cybersecurity road apply doubly during the holidays. Stay alert and protect yourself using the tips above to keep your season fun and festive.

If you’re a victim of fraud: Report the incident to the Federal Trade Commission.

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