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With the holiday season fast approaching, millions of consumers are expected to spend billions of dollars on gifts, many of them online. However, this spike in shopping activity also attracts scammers, who seek to take advantage of unsuspecting shoppers looking for great deals.

Margarita Alvarez, Senior Vice President of Consumer Risk Programs at Wells Fargo, explains that fraudsters prey on the busy nature of the holidays, hoping that consumers let their guard down. The increased volume of transactions makes shoppers more vulnerable to scams.

The Growing Cost of Scams

Globally, scammers have stolen over $1 trillion from consumers, according to the Global Anti-Scam Alliance. This number is likely much higher, as many victims are too embarrassed to report the fraud. In the U.S. alone, the Federal Trade Commission reported more than $10 billion in losses due to scams in 2023.

A study from the Better Business Bureau (BBB) highlights a 125% increase in scam reports, especially those involving fake advertisements with irresistible offers or hard-to-find popular products. These types of scams are especially prevalent around the holidays. The BBB also warns that online purchase scams are among the most common and financially damaging frauds, with 80% of those who reported losses indicating they were deceived in an online purchase.

In addition to scams, another holiday hazard is “porch piracy,” where thieves steal packages from doorsteps. With more than $97 billion in packages potentially at risk this season, many consumers are taking precautions, such as using package tracking technology and home security cameras.

Common Holiday Scams and How to Protect Yourself

Here’s a rundown of the most common holiday scams and tips to avoid falling victim to them:

1. The Hot Toy Scam: Scammers often target parents searching for the season’s must-have toys by creating fake offers. Always shop from trusted retailers and avoid clicking on unsolicited links or ads.
2. Fake Package Notifications: Be cautious of emails or text messages claiming to help you track or recover lost packages. These could be phishing attempts designed to steal your information.
3. Fake Charity Scams: Many scammers take advantage of people’s generosity during the holidays by posing as fake charities. Always research a charity before donating to make sure it’s legitimate.
4. Holiday Job Scams: As temporary work rises during the holiday season, so do scams involving fake job offers. Scammers use these listings to steal money or personal details. Always verify job offers before applying.
5. Gift Card Scams: Be careful when buying gift cards from third-party websites, as scammers may sell expired or fraudulent cards. Don’t respond to unsolicited emails or texts offering gift cards—it could be an attempt to track your online activities.
6. Social Media Scams: Scammers may attempt to build trust through friendly conversations on social media, only to later ask for money. Be cautious about engaging with unknown contacts and never send money to someone you don’t know.
7. Unbelievable Deals: Deals that seem too good to be true often are. Scammers lure shoppers with unbelievable discounts. If a deal looks suspicious, do your research and compare prices before making a purchase.
8. Fake Websites: Scammers frequently set up websites that mimic legitimate online stores. Always check the URL for slight misspellings and look for “https” and a padlock icon in the address bar to ensure a site is secure.
9. Use Secure Payment Methods: Always use a credit card when shopping online, as it provides better protection against fraud compared to debit cards or peer-to-peer payment apps.
10. Fake Product Reviews: Scammers can create fake reviews using artificial intelligence to manipulate consumers. Rely on trusted review sites and conduct your own research before making a purchase.
11. Payment App Scams: Fraudsters posing as your bank or credit card company might call and claim there’s suspicious activity on your account. They may ask you to transfer money to a “safe” account, which is actually the scammer’s account. Always verify any such request.
12. Account Takeovers: Monitor your accounts for any unexpected purchases, changes to your shipping address, or updates to your personal information. Account takeovers involve fraudsters gaining access to your accounts and making unauthorized transactions.
13. Avoid Public Wi-Fi: Never make purchases over public Wi-Fi, as scammers can intercept your personal information. Use a secure network or mobile data when shopping online.

By staying alert and following these simple tips, you can protect yourself from fraud and scams this holiday season. Take the time to safeguard your personal information, and enjoy a worry-free shopping experience.