Holiday Scams to Avoid

The holiday season is the most wonderful time of year, and nothing puts a damper on holiday cheer like having your accounts and information compromised by scams. Between shopping, spending, charitable donations, and travel, it’s easy to get caught up in the hustle and bustle of the holidays and let your guard down as you try to mark things off your list. Unfortunately, fraudsters are waiting to take advantage of distracted consumers and the opportunity for anything to slip through the cracks. We remind you to remain vigilant during this time of year so you can protect yourself from scams.

Friendly Fraud

This year, more consumers are turning to online shopping than ever before. We typically see a spike in online fraud as people begin their shopping for friends and family, but this holiday season there is expected to be a surge in “friendly fraud.” This occurs when a consumer disputes a purchase they made online, but don’t recognize. The projected fraud increase is due to the pandemic driving more consumers as well as inexperienced merchants to online sales. One of the most important ways to stay safe online and protect your accounts from fraud is to only shop from reputable merchants and sites that you are familiar with. Before you dispute an online purchase because you don’t recognize it, check to see if it was in fact a legitimate purchase that perhaps you don’t remember making. Merchants experience significant loss through these unfair chargebacks, so it’s best to double check before reporting a transaction as fraud.

Fake Website Scams

Scammers often set up fraudulent websites to entice consumers with great deals or hard-to-find products. With so many sites out there, it can be tricky to discern which ones are legitimate and which ones to avoid. If something seems too good to be true, it probably is. Remember, the best way to avoid online sales fraud is by only shopping from sites you know and trust. And never provide financial account or credit card information to anyone you don’t know. When shopping online, type the website address directly into your browser, rather than clicking a link from an email or advertisement on social media. This way, you can be certain you are shopping on the legitimate site rather than a fraudulent copycat site.

Fake Charity Scams

The holiday season is a time for giving, so make sure your donations are going where you intend. Fraudsters prey on our instincts to help those in need, and will create bogus charity pages and websites to take the money for themselves. Always be sure to confirm the validity of any organization before giving them your money. Again, it’s best to go directly to their sites rather than following links from social media posts or emails. You can search for compiled lists of credible non-profits, or check with the Better Business Bureau Wise Giving Alliance at give.org.

Payment App Scams

We’ve seen a huge increase in scams using peer-to-peer payment apps such as CashApp, Venmo, PayPal, Zelle, and others. These peer-to-peer (also known as P2P) payment apps allow people to transfer money to one another directly in real time, they basically function like using electronic cash. Unfortunately, the ease and convenience of these apps also make it easy for scammers to steal funds. When using these types of apps, you should never send money to someone you don’t know, or share any information with them, especially information about your financial accounts. If someone requests your account number, digital banking login credentials, or any other personal information, it’s a scam. You should NEVER share this information with anyone.

Other Scams to Avoid

While there are specific scams that pop up around the holiday season, there are countless other culprits to avoid throughout the year. There a number of social media scams that circulate at any given time, and there are also still scams circulating regarding the COVID-19 pandemic. It’s important to educate yourself on the warning signs of these common scams so you can take steps to protect yourself.

At Robins Financial Credit Union, the safety and security of our members is a top priority. Protecting your information works best when we have your help. Let’s work together to keep your accounts protected. To learn more about how we protect our members every day and how you can protect yourself, review our Security and Fraud information online, and watch our Scams and Fraud playlist on YouTube.