Christmas fraud can put a quick damper on holiday fun. Families are already shopping for gifts and decorations despite holiday inflation, and despite higher prices, stores are doing their best to put the customer experience first. Despite the best efforts of honest stores and online retailers, Christmas scams are still just as common as ever. Among popular types of scams are phishing attacks, gift card thefts, and downright fraud. What’s most important is learning how to avoid scam issues and what to do if you accidentally fall prey to a scammer. Key Insights: According to a recent holiday shopping survey, only 56% of customers have never been scammed during the holidays. That means almost half of consumers have been caught by a scammer. There is a 30% increase in online scams in October and November as families begin their holiday shopping. Ready to fully enjoy Christmas 2024? We’ve outlined some of the most common holiday scams so you can avoid them and celebrate safely this year. Top 7 Scams of Christmas 2024 Below is a list of the most common Christmas scams to be watching for in 2024. Gift card scams Technology can be hard to beat sometimes, especially when someone is willing to use it to take advantage of Christmas deals. When someone unethical finds a way to steal serial numbers and barcodes from gift cards, they don’t need the actual card you purchased as Christmas gifts – they have all they need to access the funds. Of course, sometimes potential gift card scams can be tricky to spot. The customer review #6016725 recently exposed that brand new gift cards for Sling TV had been already used. I bought three brand new Sling $100 GCs and entered them into my account on the Sling website. All three returned the same error message, 'Hmm, this PIN number is not valid. Social media gift exchange scams The most common social media gift exchange preys on our good intentions. The scheme works like this: you join a “Secret Sister” or “Secret Santa” group. You give the group your personal information and invite other friends to join – the more members, the better! Then, you are supposed to buy gifts for certain folks, and in return, you’ll be getting potentially dozens of gifts sent to you! Source: facebook.com Of course, such “games” only work because you have recruited more people to play after you, ensuring you get things, but they might not. This is a classic pyramid scheme, leading to completely valid customer complaints and official warnings from government agencies. While this sounds like a fun game to play during the holidays that might help boost your gift count, it may turn out to be a real Christmas scam and a perfect way for criminals to get your personal information. Social media networks giveaways Holiday giveaways are great promotions for companies, and they can land you a great deal or even a free item. Scammers know this and might create fake giveaways that look legitimate to try and collect personal information. Source: Instagram.com If you are invited to participate in raffles or giveaways, you may be offered free coupons and gift cards over social networks, through your email, or by phone. As a classic phishing attack, you will likely be given a link to a new page where the giveaway is happening. These might be fake social media pages for celebrities or popular brands. Once you interact with the page, you may be prompted to sign up with your personal information or asked to include your credit card information for free shipping on the item you “won.” One consumer was savvy enough to spot the scam and posted online review #6019622 asking if Reader’s Digest was sponsoring a prize that a random phone call claimed that they were “the grand prize winner”. Fake social media ads There are many ads for various Christmas activities and gifts in your area through social media. Some show up in your direct feed and others are in a marketplace like Facebook. During the holidays, scammers create fake ads to try and steal information or money. One Facebook user took to a review site to alert others to how commonplace this practice is. They noted in the feedback: People are posting fake ads,the purpose of which is to get your email address…They actually have nothing for sale. In this case, at least, the user didn’t fall for the scam – they wanted to know how to report them to help protect others. Delivery scams The holidays are a busy time for shipping. Scammers take advantage of this by sending fake shipping notifications or taking payment without delivering items. A fake shipping notification typically shows up as an email from a “company” about a “shipping or delivery issue.” When customers click on the link provided in the email to resolve the “issue,” they are taken to a website where they are asked to provide personal information or login details for sites where they have stored payment information like Amazon or eBay. Another popular delivery scam can happen when customers are shopping online. This might happen when you buy Christmas decorations or gifts from a website, and then the items simply never arrive. Or, you try to take advantage of a Christmas sale, and there are suddenly problems that arise after the company has your money but before you have your products. Fake and copy-cat websites A common customer issue that leads to scams is the prevalence of copy cat or fake websites. The customer clicks a link or even searches on a search engine for a website and clicks a likely result, only to be taken to a website that looks authentic, but is completely fake. An excellent example is the Nike Factory Store which spawns many copycat websites. The copycat websites look identical, offer great deals to snag attention, and then dupe shoppers into revealing their financial information. Source: malwaretips.com Charity Scams Unfortunately, there are those who would prey on the generosity of others. Charity scams rely on the generosity of others by soliciting donations to a particular charity cause when the scammers are just pocketing the money. Some charity frauds are straightforward with someone collecting money with a sign or official banners near popular Christmas shopping locations. Others are more complex and involve calling or emailing victims and requesting donations to help buy Christmas gifts for the less fortunate or other ploys that rely on the victim’s goodwill. How Avoid Christmas Scams Choose secure websites Websites that have https at the beginning of the URL are generally secure. If the URL has http without S, it is likely that if you provide your personal information and credit card details, they will be accessible to hackers. Use One Credit Card Using a prepaid card or a credit card with a low limit will allow you to do your online holiday shopping a tad easier and safer. It will also simplify things as you will only have one account to monitor for unusual activity. Also, it is recommended to avoid using a debit card for your online purchases. This is because, in the event of a scam, the card issuer will have to fight to get its money. Check Online Reviews This applies whether you are shopping on a well-known platform or a newer platform. You will easily find the top complaints about the company and hence be able to determine if the company is legitimate. It is advisable to check various review websites to get a clear sense of the company’s reliability. Also, search for “company’s name + scam” to see any reported cases of scams about the company. Finally, if you have been scammed by a company, leave a review for others. Enhance your digital security measures Check that the antivirus software on your computer and phone is up to date. If it’s updated, it should catch any malware and viruses before they can infect your device. Some antiviruses will even warn you about suspicious links and websites before opening them. You can also be proactive in your digital security by checking on site age and safety. Easily look to see how long a website has existed online Brand new sites are more likely to be scammers. Opt for store pick up If you want to shop online but you’re worried about scams, shop on big name websites, and then opt for store pick up. Many stores have same day or curbside delivery, so you can shop and compare prices online but avoid the crowds and chaos at check out and pick up time. Best of all, if you don’t like the item, you’re already in a prime place to return it and try again! Document your purchases While it’s tempting to order as inspiration strikes on various websites, it’s far better to carefully document and track your purchases, at least your expensive ones. Top strategies after being scammed will ask you to document your experience including providing dates, amounts, and any contact information. How to Find Legit Christmas Deals Below are tips to help you find legit Christmas offers in 2024: Follow Stores on Social Media: Get exclusive holiday deals by following official pages and signing up for newsletters. Use Coupon Codes: Save up to 15% with online coupon codes; check for expiration dates and apply before checkout. Leverage Free Shipping Promos: Reach minimum order requirements or opt for store pickup to save on shipping costs. Beat Dynamic Pricing: Clear browsing history, delete cookies, and use incognito mode to avoid price increases. Install Cashback Apps: Use apps like Rakuten for rebates, or join store rewards programs to accumulate discounts over time. Stay Safe from Christmas Scams Consumer issues are common during the holidays – it’s the most popular time of year to shop, and problems are bound to arise. We can all expect crowds and a headache or two, while we prepare for Christmas. What’s most important is that you find the deals you’re looking for on holiday items while staying safe and protecting your personal and financial information.