10 Holiday Scams to Avoid

The holidays should be a time for giving. But unfortunately, some see this time of year as the perfect time for taking — preying on those whose guard may be down during the seasonal festivities. In fact, in 2023 alone, the Federal Trade Commission (FTC) received over 2.6 million fraud reports from consumers, citing imposter scams as one of the top methods of fraud.¹

To make sure scammers do not stand in the way of your goals this holiday season, we’ve gathered the top holiday scams to watch out for, along with tips to avoid them and how to keep you, your data and your finances safe from holiday fraud.

1) Phishing emails

Email holiday scams often come in the form of suspicious, unsolicited messages announcing holiday deals and special sales. Typically, they’ll contain links leading to fraudulent websites designed to capture, then capitalize on, your personal data.

If you receive a suspicious email, it’s best not to open it at all. But sometimes, it can be hard to tell what’s real and what’s fake. Keep these things in mind when evaluating these emails:

• Hover over links (without clicking) to check where they lead (amazon-store.com, for example, instead of the legitimate amazon.com).
• Recognize misspellings and highly urgent messaging as a red flag.
• Examine the sender’s address to make sure it comes from a legitimate business.
• Never click a link you aren’t sure about or download any attachments from a suspicious email.

2) Bogus ads linking to retail websites

Scammers know that during the holiday season, online shopping increases. They’re skilled at creating counterfeit retail websites that look like the real deal. Sometimes you may even see ads on social media sites, like Facebook and Instagram, that link to fake retail websites. According to the FTC, people reported losing around $1.2 billion from fraud initiated through social media in 2022.²

Be particularly cautious of ads about letters from Santa, one of the most common holiday phishing scams. While some legitimate companies offer this service, this is a known scam to collect personal data during the holidays. Check the names of companies with the Better Business Bureau to make sure they’re legitimate prior to ordering.

Regardless of the time of year, a good rule of thumb is to only enter sensitive personal data on websites that begin with “https,” which indicates that all entered information is encrypted, meaning your information is protected from theft.

3) Phone scams

During the holidays, you may experience a higher volume of phone calls. Holiday scammers will pose as anything from an IRS agent to a utility company in order to collect money for a fake bill.

In addition to phone calls, scammers have also resorted to SMS texting (smishing) with messages that include fake links to capture your personal information. Another form of phone fraud is a QR code scam, where scammers use QR codes to trick you into visiting harmful websites or downloading unsafe apps.

To prevent falling victim to this form of holiday fraud, let unknown callers go to voicemail and never click on a link in a text from someone you don’t know. Always double-check before scanning any QR codes to keep your personal information safe.

Scam lending is on the rise. If you get a call or voicemail from someone claiming to be from OneMain Financial, do not return the call using the phone number they provide. Instead, call the number on our website or on your billing statement to speak with an authorized team member.

OneMain will never contact you to request personal information like your Social Security number, account password or login credentials.

4) Romance scams

The holidays can be a lonely time for some, so they turn to online dating. But unfortunately, holiday romance holiday scams are on the rise. The FTC reports that romance scams reached a record of $1.14 billion in losses in 2023.³

Scammers will make fake profiles on popular dating sites, as well as social media sites, to establish a relationship prior to the holidays. Imagine finally meeting someone online and having them say they want to spend the holidays with you, but they need some money for travel expenses. To avoid romance scams like this, be suspicious of anyone who won’t video chat with you, and never wire money to someone you haven’t met in person.

5) Travel scams

Another holiday scam to watch out for involves travel. During the holidays, travel increases as people book flights to visit family. Scammers will pose as travel agents and airline ticket brokers, as well as create fake travel booking websites. They’ll offer deals on flights, or even free nights in a hotel, in exchange for your information.

Always do your research before you sign up for anything that’s travel-based and, if possible, use a credit card if you do book something, as most credit card companies won’t hold you responsible for fraudulent charges.

6) Social media gift exchange

Although having a “Secret Santa” with friends and family can be fun, participating in one online with strangers is a known holiday scam. For several years, a “Secret Sister” holiday gift exchange on Facebook has preyed on women, asking them to send one gift in exchange for 36 gifts.⁴ While several variations of this common holiday scam exist, they’re all pyramid schemes that involve sharing your personal information and sending gifts, gift cards or cash to strangers, and getting nothing in return.

7) Temporary holiday jobs

Although the holidays bring about plenty of opportunities for seasonal work, not all jobs posted are real. In yet simply another form of holiday fraud, scammers create fake job postings to capture the personal data of unsuspecting people.

Be suspicious of any job that doesn’t require an interview or offers big pay for little work. Additionally, never pay for any supplies or “training fees”— those are the responsibility of a legitimate employer.

You should also be cautious if you’re asked to provide your Social Security number on a job application, because that may also be a scam. In rare instances, you may be asked to provide your Social Security number on an application. But legitimate employers typically ask for this information later in the recruitment process to perform background checks on potential employees. Double-check the job posting, research the company, and use secure platforms to protect your personal information when applying for jobs to avoid this type of holiday scam.⁵

8) Fake charities

It’s disheartening, but there are scammers waiting to dupe you into contributing to what you believe is a worthy cause. This time of year, fake charities are a common holiday scam to watch out for. If you receive a phone call, email, letter or text requesting charitable donations, first authenticate the organization on charity-verifying sites such as Give.org and Charity Navigator. Also, beware of phony charity sites that trick people into donating on what appears to be a legitimate website. Crowdsourced fundraising sites can also be suspicious, so only give to crowdfunding efforts established by people you know.

9) Gift card fraud

When it comes to holiday scams, gift card fraud is prevalent. As with most things that seem too good to be true, steer clear of ads and emails offering free gift cards, as they’re typically linked with phishing scams. When purchasing gift cards, avoid third-party and auction websites, as they often feature fraudulent, expired or valueless cards.

If you’re the recipient of a gift card you can’t or don’t want to use, use caution with online buyers, especially those requesting a three-way call “balance check,” which usually leads to data theft. Finally, never pay for anything with a gift card other than goods or services from the retailer or company the card is meant for, or if it’s a general-purpose gift card, anywhere the card brand is accepted. Consumer safety experts agree that anyone who asks for payment via gift card is inevitably a scammer. Once you give them the gift card number and code, in most cases, the money can be spent immediately, and it’s likely to mean you won’t be able to reclaim the spent funds.⁶

10) Shipping and delivery scams

With all the online purchases we make over the holidays, it’s easy to lose track of when items are expected to be delivered. And scammers are ready to take advantage. One scam to watch out for is fake delivery notifications that look nearly identical to those from legitimate shippers like FedEx, UPS and the United States Postal Service.

If you receive a shipping or delivery email that directs you to a website that requires personal information, such as a Social Security number, credit card number or payment, leave the site immediately. Shipping companies never request that kind of personal information. If you’re unsure about an email or a “we missed you” door hanger, look up the official number of the shipping company, then call them to verify the notification. The extra effort is worth your safety and peace of mind.

How to verify who you’re sending money to

Holiday scams all have one thing in common: scammers want your personal information, and they’ll do just about anything to get it. Phone calls can appear to come from your area, and emails can look like they’ve been sent by legitimate companies that you do business with.

The Better Business Bureau is a reliable resource for determining whether a business or charity is legitimate. You can use their scam tracker to search existing scams and submit a report of your own.

What to do if you experience a holiday scam

If you are a victim of holiday fraud, the FBI recommends first calling your credit card company or bank to report the scam and dispute any suspicious charges. Next, call local law enforcement to file a police report. Then report the scam to the FBI’s Internet Crime Complaint Center. Filing a complaint with the Federal Trade Commission is also recommended to spread the word about the holiday scam to law enforcement across the country and aid in investigations

Keep your personal information safe from holiday scams this season

The best way to keep your identity safe is to be aware of common holiday scams, take steps to avoid them and keep your eye out for anything suspicious. If it seems fishy (or phishy), it probably is. And if you do fall victim to holiday fraud, or your identity is stolen, be sure to report it to help catch the scammer and prevent others from being victimized, as well.

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Sources

1. https://www.ftc.gov/news-events/news/press-releases/2024/02/nationwide-fraud-losses-top-10-billion-2023-ftc-steps-efforts-protect-public
   
2. https://www.ftc.gov/business-guidance/blog/2023/03/bad-ads-social-media-ftc-asks-platforms-about-their-screening-policies
   
3. https://www.ftc.gov/business-guidance/blog/2024/02/love-stinks-when-scammer-involved
   
4. https://www.bbb.org/article/scams/18854-bbb-warning-secret-sister-gift-exchange-is-illegal
   
5. https://consumer.ftc.gov/articles/gift-card-scams

This post has been updated from postings in 2019 and 2022. Jessica Leshnoff, Kim Gallagher, and Kia Jackson contributed to this post.