Be Careful of these 12 Christmas Scams

This holiday season, stay cautious of scams like fake ads, phishing emails, and charity fraud. Protect yourself with strong passwords, two-factor authentication, and by verifying sources before making purchases or donations.

With Christmas shopping in full swing, it's critical to avoid falling for fantastic offers that you can't believe are real, because they could not be.

The Better Business Bureau warns people to remain cautious this holiday season and avoid falling victim to scammers.

According to Wes Lafortune, the Better Business Bureau's Media and Communications Specialist, a lot of money has been taken this year. So far this year, there have been losses totaling more than $300 million.

That is most likely only skimming the surface. It's most likely many orders of magnitude larger. With people getting ready for Christmas and, of course, spending a lot of money shopping, it's vital to be aware of some of the most common scams that have emerged this year. 

The following are the top 12 Christmas scams, according to the Better Business Bureau:

1. False social media ads:

As you go through your social media stream, you may come across items for sale from a small business. According to the 2022 BBB Online Scams Report, online purchase scams were the most commonly reported cons to Scam Tracker and the category with the most victims. Before placing an order, do your homework and study the firm.

2. Holiday apps:

Apps that allow youngsters to video chat with Santa, light the menorah, watch Santa feed live reindeer, monitor his sleigh on Christmas Eve, or relay their holiday wish lists. Examine privacy policies to determine what information will be gathered. Free apps should be avoided since they may contain more advertising than paid apps. Malware can even be found in free apps.

3. Account alerts:

The BBB has received reports on Scam Tracker of a scam stating that your Amazon, Paypal, Netflix, or bank account has been compromised. Victims receive an email, phone call, or text message informing them that suspicious activity has been detected on one of their accounts and urging them to take urgent action to avoid the account from being compromised. Unsolicited calls, emails, and texts should be avoided at all costs.

4. Free gift cards:

Nothing gives good pleasure like the word 'FREE'. Scammers have been known to exploit this flaw by sending mass phishing emails seeking personal information in exchange for free gift cards. Scammers imitate legitimate organisations like Starbucks in some of these communications, promising gift cards to loyal consumers who have supported their business during the pandemic. They may even employ pop-up advertising or text messages with links claiming you were chosen at random as the winner of a reward.

5. Seasonal jobs:

Retailers generally hire seasonal staff to assist in meeting the expectations of holiday shoppers. Because of the surge in online orders and the necessity to get most of these products delivered before Christmas, shippers and delivery businesses are among the top holiday employment this year. These jobs are a terrific way to generate extra money, and they can sometimes lead to long-term work opportunities. However, job seekers should be careful of employment scams that attempt to steal money and personal information from applicants. Keep your eyes peeled for possibilities that appear too good to be true.

6. Fake websites:

During the holiday season, emails abound with offers, specials, and savings. Be aware of emails that include links. Some may redirect to fake websites set up by scammers to deceive consumers into installing malware, making pointless purchases, and disclosing personal information. Do not click any of the links if you are unsure about the email. Hover over them instead to see where they reroute.

7. Fake charities:

During the last few weeks of the year, 40% of all charity gifts are collected. Donors are warned to be wary of bogus charities and crooks posing as people in need. Avoid impulsive donations to unknown groups. Responsible organisations will appreciate a gift as much tomorrow as they do today. Verify a charity on the Better Business Bureau's Give.org or the Canada Revenue Agency's website. If feasible, make a credit card donation to the organisation via their website.

8. Fake shipping notifications:

As more people shop online, the amount of messages about delivery details from retailers and carriers is increasing. Scammers are taking advantage of this new spike to send phishing emails including links that may provide unauthorised access to your sensitive information or download malware onto your device.

9. Top nine holiday wish list items:

Low-priced luxury items, jewellery, designer apparel, and electronics are virtually invariably inexpensive knockoffs and counterfeits. When considering purchasing high-value things from individuals via social media, proceed with extreme caution.

10. Puppy scams:

Many families, especially those with children, may be thinking about getting a new pet this year. However, you may become a victim of a pet scam, which is on the rise this year. Before making a purchase, request to see the pet in person.

11. Emergency or grandparent scams:

This occurs when you receive an unexpected call from a stranger, usually posing as a person in authority, indicating that a loved one is in distress. Often, they have been in a car accident or have been arrested while on vacation. Don't get taken in by it. Don't interact, and don't remove big sums of money to give to strangers.

12. Romance scams:

This can happen at any time of year, but the holidays can be especially dangerous for some of us. If you're in an online discussion and someone requests for money or an investment, end the conversation. This is a ruse.

Top Tips to Avoid Holiday Scams:

The holiday season is a time of joy and celebration, but it's also a prime time for scammers. Here are some essential tips to help you stay safe and secure:

Use Two-Factor Authentication (2FA):

Paul Hankin, a cybersecurity advisor at Kaesim, emphasizes the importance of 2FA. He says, "Passwords simply aren’t enough anymore." By enabling 2FA, you add an extra layer of security, making it much harder for scammers to access your accounts. According to Google, 2FA can block 100% of automated email attacks, 96% of bulk phishing attacks, and 76% of directly targeted attacks.

Strengthen Your Passwords:

Hankin also recommends improving your passwords. A strong password can make a huge difference. Use the “4+1 rule”: four unrelated words and a number. Avoid using personal information like your children's names or common passwords such as 'password01'. As Hankin puts it, "A long password is strong. A complex password is crazy."

What To Do if You Fall For a Scam:

1. Contact Your Bank and Retailer: If you suspect you've been scammed, contact the retailer immediately. Many companies will work with you to track down your package or provide a refund. If that doesn’t work, reach out to your bank. They can help you dispute the payment and block any further fraudulent transactions.  
2. Report Scams to Regulators: Don’t be ashamed to report the scam. Contact Scamwatch or your local police. Reporting helps prevent these scams from happening to others. You can also reach out to the Australian Securities and Investments Commission (ASIC) if the scam is related to financial or investment fraud.

Remember, staying vigilant and taking proactive steps can help you enjoy a worry-free holiday season. Stay safe and spread the word to help others stay protected too!