Tis the season for giving, which also means it’s the season for taking too. Crime rates skyrocket during the holiday months, but there are some crimes you can avoid. Scammers constantly prey on anyone they can get their hands, which makes it hard to keep up with your money over the holiday season. Being aware is one of the best ways you can prevent falling victim to a scammer during the holidays and throughout the entire year. Luckily, there’s many scams that we are aware so having knowledge of them can be incredibly powerful for your security. So, grab your notepad and jot these ten items down, because they would help save you a small fortune.
1. Secret Sisters
This major scam started running its course on social media last year and has targeted a pretty large audience. Although many have fallen for the scam already, there are still many more that will fall for it this holiday season. The scam is directed towards women and promises a fun Secret Santa experience that will earn participants lots of gifts for very little. You’re given a list of people to shop for with the promise of receiving a lot more gifts in return. The only problem is, once you send the gifts off to other people you more than likely won’t get anything in return. The scam has a weird way of explaining the math behind it, but if you sit down and work the numbers for yourself you’ll quickly discover that it just doesn’t add up. So, do yourself a favor and avoid any Secret Sister groups in order to save you a lot of money and a few headaches.
2. Phony Websites/Apps
All year long, there’s plenty of websites that are designed to fool you as a consumer. These sites usually offer great products at a price that is unheard of. These sites often sell phony items or will simply take your money and never send the item out. Worse yet, some are even designed to seem like official websites for companies you shop with on a regular basis. This can lead to you losing large amounts of money, especially if the website uses phony products in order to steal your credit card number. There are ways to protect yourself from these websites though. For instance, if you look around for the Better Business Bureau seal (BBB) then you know the website is safe to use. Also, if the checkout area is secure and locked then you should be safe. Of course, you should always look at reviews on websites before you purchase from them.
3. Gift Cards
There’s many websites dedicated to selling gift cards. You can buy them brand new, slightly used and so on. However, this makes it incredibly easy for people to sell gift cards that are a scam. You could wind up spending a fortune on a gift card that is completely empty. When shopping for gift cards you should always shop with a reputable company, so if there is a problem you can easily dispute it to ensure you get your money’s worth. Better yet, you should also shop with the store or restaurant you are buying a card from. This makes it easier than ever to dispute and activate cards with a receipt. There are also many email scams that will say you’ve won a gift card. These are never true unless they come from a valid company, so don’t click on any links from unfamiliar services.
4. Social Media Coupons
Coupons for freebies seem to run rampant on social media throughout the year, but during the holidays they pop up even more. These coupons are usually shared by people on your friend list who believe that sharing them will actually earn them the free mileage or grocery shopping trip. These coupons are absolutely not real though and clicking on them could cause you a whole lot of problems, especially if you enter in your bank account information or even just login to your social media account on their websites. One of the more famous scams of this type is a $200 coupon for the grocery store Wegman’s. Of course, you will find them for airfare, cigarettes and just about anything else you could desire too. So, remember, if it’s too good to be true then don’t click on it or share it.
5. Card Skimming
It doesn’t matter if you’re shopping online or offline, your card could be in danger. Online, hackers can get ahold of your card information easier than you think, so it’s important to always be aware of where you’re shopping. Usually trusted retailers won’t pose a risk to your security, but if they do you will receive a message from them as well as reimbursement options if there is a problem caused by them. Some will even offer credit monitoring to ensure your information is safe and sound. If you choose to shop online, you might want to use secure payment methods like Paypal, so you can dispute any charges that you didn’t make. Even shopping in local stores can cause a problem. Whenever you swipe your card anywhere you should check to make sure the system looks untampered with. This is especially true when it comes to locations like gas stations. You can protect yourself from these problems with chip cards which are harder to steal, but being aware of your surroundings is one of the best options.
6. Fake Charities
Donations to charities increase substantially during the holiday season and scammers are quite aware of this fact. Thus, many will set up fake charities to help rack in some cash from unsuspecting givers. These charities pop up on websites, in churches and just about anywhere people would be willing to give money. Some will even set up stands complete with brochures that make them look like a legitimate charity. The best thing you can do during this season is to not give money to anyone you’re not sure of. You can do quick research online to find charities that are real and that accept funds in both check, money orders and online payments. Usually, Salvation Army collections are noticeable too, as you can see the company’s logo on the side of the collection basin. However, be leery and don’t give large sums of money to this type of collection as it could still be a scam or it could put the collector at risk for robbery.
7. Loan Scams
Most people are looking for a little extra money during the holiday season so they can make their family’s dreams come true. Many loan companies know this and begin to hunt down people to loan to as soon as the holidays begin. Although this can be very helpful for people who need the money, more often than not it can lead them in a world of trouble when it comes to finances and credit score. Some of these companies are an absolute scam and won’t give you the money promised. You could end up paying double to triple back due to high interest rates or other fees that they tack on to take advantage of unsuspecting borrowers. If you do need to take out a loan, try to visit a local bank or credit union to do so. This will help you get the money you need at a fair interest rate that won’t escalate later on. Payday loans can also lead you in a world of hurt too, due to the extra money you have to pay back. So, try to avoid this at all costs too.
8. Email Phishing
This year has already seen a lot of emails from high profile companies like Amazon, Paypal and Walmart, so the holiday season is sure to be filled with scammers trying to take advantage of your needs. The emails tend to look exactly like they came from the company, which is why so many people fall for them. Usually, the email will say your account has been hacked into or someone has purchased something from your account. The email will also give you a link to follow where it will have you login to your account. This is where the hacker gains your information and can then steal your card numbers, account balances and so on. There are many clues you can follow to avoid these scams though. Make sure you look at the email address, as usually they will be slightly different from the original website’s. Misspelled words and other discrepancies are another major clue your email isn’t from the website too. Of course, if you’re simply not sure, then get out of the email, clear your cookies and log into the website from the actual site. If there is a problem, you will be able to view it from there. Make sure you report these emails for phishing too, so they can’t steal other people’s information as well.
9. Lodging
For some people, the holidays are a time for travel which opens up a whole new world of scams. There are many websites that will offer you amazing rates on hotels, beds and breakfasts, and time shares. At a time when booking a place to stay is usually more expensive, you should always be leery of arrangements that are too good to be true. Air BnB can be one of the biggest culprits. Some people on the site will take funds and then close their account before you can check into your room. Although the website does try to remedy these problems, it can cause a real inconvenience when you need a place to stay and you’ve lost the money you’d set aside for it. Others will post up images of their rooms and they will look entirely different when you arrive. So, before you book, make sure you look over reviews and other information before you give out your information.
10. Old Fashioned Pick-Pockets
Even shopping in local stores can cause a problem with your finances. Most people aren’t thinking as cautiously as they would when shopping normally, which leaves your cash and cards at risk. Many pick-pockets will wait until they see an open window to swoop in on your goods. This usually happens when you’re struggling with your bags or checking out at a register. Even if you keep your money close by, the items you’ve already purchased can be at risk. If you sit your packages down to pay or take a break for a while, people can swoop in and grab a bag without you even realizing it. So, in order to be safe, you may want to take bags out to your car each time you shop so you know your items will be safe and sound. You should also avoid carrying around a purse if you can as this can give thieves easy access to your items. Being aware of those around you can help considerably though, so keep your eyes and ears open when shopping on the busy days.
Scams are a big part of the holidays, but they don’t have to leave you high and dry. These ten scams can be avoided, so make sure you keep them in mind while you’re shopping online or off. With a little luck, you’ll be able to get through the holiday season without losing money or holiday spirit due to other people’s cruel actions.
