Holiday Scams:
Top 5 Scams and How to Avoid Them!
Ho-Ho-Hold onto your wallet. It’s the most wonderful time of the year. That means whiskers on kittens and warm woolen mittens, hearts all aglow, chestnuts roasting on an open fire, and…holiday scams? Luckily Kevin McCallister’s dad, Peter, helps us prepare for these scams with master scammer and one half of the Wet Bandits (soon to be the Sticky Bandits), Harry Lyme.
Find out how you can be on your guard as well.
Now that Peter McCallister has given us the basics, what do you need to do avoid becoming a victim?
The Delivery Deception
With the rise of online shopping, package deliveries are at an all-time high. Scammers take advantage of this by sending fake delivery notifications, claiming there’s an issue with your shipment. Click the link, and you might end up downloading malware instead of tracking your package.
How to Avoid It: Keep track of your orders and delivery schedules. If you receive an unexpected notification, don’t click any links. Instead, go directly to the retailer’s website or contact their customer service for verification.
The Phony Charity Plea
The holidays are a time for giving, and scammers know it. They might pose as a charity, tugging at your heartstrings with a sob story that would make even the Grinch shed a tear. But before you reach for your credit card, take a moment to verify their legitimacy.
How to Avoid It: Do your research! Use websites like Charity Navigator to check the organization’s credentials. And remember, real charities won’t pressure you for an immediate donation. If they do, it’s a red flag bigger than Rudolph’s nose.
The Gift Card Grift
Gift cards are a holiday staple, perfect for that hard-to-shop-for relative. But beware of scammers selling fake or empty gift cards online. You might end up gifting your loved one a card with a balance of zero—talk about a holiday buzzkill!
How to Avoid It: Purchase gift cards directly from the retailer or a trusted source. Avoid buying them from third-party sellers or auction sites. And always check the card’s packaging for signs of tampering
The “Too Good to Be True” Online Deal
Picture this: you’re scrolling through your favorite social media platform when suddenly, a deal pops up that’s so amazing it makes Santa’s sleigh look like a clunker. A 75% discount on the latest gadget? Sign me up! But wait—before you click “buy,” remember the golden rule: if it sounds too good to be true, it probably is. Scammers love to lure you in with irresistible offers, only to leave you with an empty wallet and no gift to show for it.
How to Avoid It: Stick to reputable websites, check for secure payment options (look for the little padlock icon), and always read reviews. If you’re unsure, ask yourself, “Would I trust this site with my fruitcake recipe?” If the answer is no, steer clear!
- Online Marketplace Krampus
Online marketplaces are a treasure trove of holiday deals, but they’re also a playground for scammers. Whether you’re buying or selling, you might encounter fraudsters who disappear faster than a snowflake in July once they’ve got your money.
How to Avoid It: Stick to well-known platforms and check the seller’s ratings and reviews. Be wary of deals that seem too good to be true, and never wire money or send gift cards as payment. If you’re selling, ensure the payment clears before handing over the goods. And remember, if someone offers to pay more than your asking price, it’s likely a scam—no one’s that generous, not even Santa! Meet buyers or sellers in public, well-lit places. Many police stations offer exchange zones. And don’t hand over items until payment is received.
Awareness is the key. We’re all really busy this time of year. Don’t let the frantic pace of the season be the reason you let your guard down.
Disclaimer: This post is for informational purposes only and should not be considered as financial advice. Please consult with a financial advisor or tax professional for advice specific to your situation.
Feel free to share this with your clients and prospects to add a bit of humor to their financial planning journey!
