Your Top Tips for Holiday Scam Prevention (Do This to Stay Safe!)

As the holiday season approaches, we’re getting ready for a surge in delicious treats, time spent with family and friends and occasions where we may have to loosen our belts to enjoy a cup of hot chocolate. 

While the holidays bring about so much joy, it also brings an increase in holiday scams.  

In 2023, U.S. consumers lost nearly $10 billion to scams — a sharp increase from the previous year. And these scams do appear to happen more often when snow is falling and spirits are high: Nearly a quarter of respondents to an Experian survey on identity theft reported being victimized by scams over the 2020 holidays. 

What are these scams? How can you keep yourself and your loved ones safe? Here’s what you need to know. 

Here’s a Gift We Hope You Never Receive: Holiday Scams 

Holiday scams are fraudulent schemes that come during the holiday season (largely speaking, October-December) and any holiday scams are specifically designed to exploit the heightened shopping and charitable giving that occurs at the end of the year. 

The latest scams you may have heard about include: 

• Social engineering scams: Scams that involve criminals impersonating your bank or a trusted company to steal your information
• Phishing: A type of attack where scammers send emails that look like they’re from reputable companies but are actually designed to steal your personal information

The Key Holiday Scam Warning Signs To Watch Out For

Luckily, these types of scams don’t always come 100% out of the blue — and there are helpful red flags to keep in mind. 

For example, if anyone suddenly asks you for personal information over text or email and the rationale feels, ah, fishy — red flag. Be a little leery of any communication that pressures you to provide personal details immediately. 

Here’s another example: If at all possible, never click on links or open any attachments from texts or emails that you’re not expecting. Has your bank texted you a password retrieval link for no reason? Red flag. Is a phone number that looks like the CEO of your company pressuring you to buy them a gift card from a specific link? Red flag. 

The Most Common Types of Holiday Scams to Know About 

As you start to fill your calendar with festivities and plan out which stocking stuffers you need to buy, be aware of these common types of holiday scams: 

1. Charity Scams

Scammers are very aware that many people feel more like donating to charity in Q4 than at any other time during the year. To take advantage of this, scammers may create fake charities or impersonate legitimate ones to try and steal your money. 

To do this, they may send emails, make phone calls or set up websites that look almost identical to well-known charities. (Pro tip: It can be tough to distinguish some really well-designed scams, but trust your gut — if something feels off, it likely is.) 

Always verify the legitimacy of a charity by checking its official website or using a charity rating service, such as Charity Navigator, before making any donations.

2. Online Shopping Scams 

With online shopping at an all-time high during the holiday season, scammers set up fake websites that mimic popular retailers or offer deals that seem too good to be true. 

They are. 

These sites are designed to steal your personal information or sell counterfeit goods. Even worse, some scammers send phishing emails claiming issues with your order — an order that may have actually happened — which can give you the precise misplaced confidence you need to click on malicious links. 

Whenever possible, navigate directly to your customer account on a website through your own browser instead of clicking over from unprompted emails. 

3. Gift Card Scams 

Gift cards are a popular holiday gift, but they can also be a useful for scammers. Some fraudsters trick people into purchasing gift cards and sharing the card numbers over the phone or via email. Once they have the numbers, they quickly deplete the card’s value, leaving the buyer with nothing to give — not really the gift-giving experience you likely have in mind for this year’s holiday season! 

Here’s Exactly How to Protect Yourself from Holiday Scams

With these and other holiday scams on the rise, it’s time to equip yourself with a combination of awareness and proactive steps. 

We recommend the following: 

• Verify any websites, charities and offers — preferably directly through the company or through a trusted source — before you buy. 
• Keep your personal information secure. Never share financial or personal information via text, phone or email. (Reputable websites have secure payment portals for that kind of thing.) 
• Regularly check your bank and credit card statements for any unauthorized transactions. 
• Be wary of any and all unsolicited communications. 

While the holiday season is a prime time for scammers, it's essential to maintain these protective habits year-round. Fraudsters don’t take breaks, and being cautious throughout the year can help protect your personal and financial information from a wide range of threats. Remember, vigilance is your best defense against fraud, and your financial institution is always a resource if you suspect something isn’t right. 

Looking for an institution that will arm you with the resources and information you need to protect yourself against holiday scams and other types of fraud? Become a 7 17 member today!

As a reminder, 7 17 will NEVER contact members to request sensitive, personal information, such as account numbers, NetWorth24 online banking credentials or PINs. Together, we can outsmart the scammers and keep the holidays joyful and safe.