The top 12 scams on the holiday naughty list
As 2022 is winding down, your Better Business Bureau (BBB) is sharing a series of tips to help keep your holidays safe and joyful. This time, BBB is sharing a naughty list of the top 12 scams of the holidays that are most likely to catch consumers and donors off guard during this season.
Many of those listed are pushed via emails. BBB has found that those promoted on social media platforms are proving to find the most vulnerable victims. It’s important to exercise caution when coming across social media ads about discounted items, event promotions, job opportunities and donation requests, as well as direct messages from strangers. If you are asked to make a payment or donation by wire or e-transfer through third parties, by prepaid debit or gift cards, treat these requests as red flags.
1. Misleading social media ads: As you scroll through your social media feed, you often see items for sale from a small business. Sometimes the business even claims to support a charity to try to get you to order, or they offer a free trial. BBB Scam Tracker receives reports of people paying for items that they never receive, getting charged monthly for a free trial they never signed up for or receiving an item that is counterfeit or much different from the one advertised. The 2021 BBB Scam Tracker Risk Report found that online purchase scams were the most common cons reported and the category with the most victims. Do your homework and research the company before ordering. Check out the business profile on BBB.org and read the reviews.
2. Social media gift exchanges:
Each holiday season this scheme pops back up, and this year is no different. A newer version of this scam revolves around exchanging bottles of wine; another suggests purchasing
$10 gifts online. Another twist asks you to submit your email into a list where participants get to pick a name and send money to strangers to “pay it forward.” There is even a twist about “Secret Santa Dog” where you buy a $10 gift for your “secret dog.”
In all of these versions, participants unwittingly share their personal information, along with those of their family members and friends, and are further tricked into buying and shipping gifts or money to unknown individuals. And — it’s an illegal pyramid scheme.
3. Holiday apps:
Apple’s App Store and Google Play list dozens of holiday-themed apps where children can light a menorah, video chat live with Santa, watch Santa feed live reindeer, track his sleigh on Christmas Eve or relay their holiday wish lists. This holiday season, like the past two years when COVID-19 caused children to skip the traditional in-person visit with Santa, apps may play a more important role than ever. Review privacy policies to see what information will be collected. Be wary of free apps, as they can sometimes contain more advertising than apps that require a nominal fee. Free apps can also contain malware.
4. Alerts about compromised accounts:
BBB has been receiving reports on Scam Tracker about a con claiming your Amazon, Paypal, Netflix or bank account has been compromised. Victims receive an email, call or text message that explains there has been suspicious activity on one of their accounts, and it further urges them to take immediate action to prevent the account from being compromised. Be extra cautious about unsolicited calls, emails and texts. Never click on links provided in the texts. If you have an account with the company named in the message, you can log in using their valid website to check your account status.
5. Free gift cards:
Nothing brings good cheer like the word “FREE.” Scammers have been known to take advantage of this weakness by sending bulk phishing emails requesting personal information to receive free gift cards. In some of these emails, scammers impersonate legitimate companies like Starbucks and promise gift cards to loyal customers that have been supporting their business throughout the pandemic. They may also use pop-up ads or send text messages with links saying you were randomly selected as the winner for a prize. If you have received an unsolicited email with gift card offers, do not open it. Instead, mark it as Spam or Junk. However, if you opened the email, do not click on any links. This is also a great time to be sure your anti-virus software is up to date.
6. Temporary holiday jobs:
Retailers typically hire seasonal workers to help meet the demands of holiday shoppers. Shippers and delivery services are top holiday employers this year because of the increase in online orders and the need to get most of these packages delivered before Christmas. These jobs are a great way to make extra money, sometimes with the possibility of turning into a long-term employment opportunity. However, job seekers need to be wary of employment scams aimed at stealing money and personal information from job applicants. Keep an eye out for opportunities that seem too good to be true. Don’t give out personal information such as a social security number or bank account information (for payroll) until you’re sure it is valid employment.
7. Look-alike websites: The holiday season brings endless emails offering deals, sales and bargains. Be wary of emails with links enclosed. Some may lead to look-alike websites created by scammers to trick people into downloading malware, making dead-end purchases and sharing private information. If you are uncertain about the email, do not click any of the links. Instead, hover over them to see where they reroute. It’s best to delete these emails. Also be careful when doing online searches as some scammers will create sites with URLs containing very similar names to well known brands.
8. Fake charities:
Typically, 40% of all charitable donations are received during the last few weeks of the year. Donors are advised to look out for fraudulent charities and scammers pretending to be individuals in need. Avoid impromptu donation decisions to unfamiliar organizations.
Responsible organizations will welcome a gift tomorrow as much as they do today. Verify a charity at BBB’s Give.org. Where possible, donate to the charity through their website and use a credit card, as this provides you the most protection should you find afterwards that there are concerns about the legitimacy of the soliciting organization.
9. Fake shipping notifications:
We mentioned this one last week, and it also made our top 12 list. More consumers are making purchases online, and this has resulted in an increase in the number of notifications about shipping details from retailers and carriers. Scammers are using this new surge to send phishing emails with links enclosed claiming that there’s been a delay in shipping your item or that there’s a need for more information. If you click on the link, it will allow unwanted access to your private information or download malware onto your device. They may also try to trick people into paying new shipping fees.
10. Pop-up holiday virtual events:
This year, many local in-person events such as pop-up holiday markets or craft fairs, have moved online. Scammers are creating fake event pages, social media posts and emails, charging admission for what used to be a free event. The goal is to steal credit card information. Confirm with the organizer of the event if there is an admission fee. In cases where there is a charge, use a credit card. If the event is free, watch for scammers trying to claim otherwise.
11. Top holiday wish list items:
Low or ridiculously priced luxury goods, jewelry, designer clothing and electronics are almost always cheap counterfeits and knockoffs. This year, the Galactic Snackin’ Grogu Animatronic (aka Baby Yoda) and game consoles are some of the items in high demand. Be extremely cautious when considering purchasing these highvalue items from individuals through social sites. Do your research on the sites at BBB.org and always use a credit card for any purchase.
12. Puppy scams:
Many families, especially those with children, may be considering adding a furry friend to their household this year. However, you could fall victim to pet scams, which continue to be on the rise. Request to see the pet in person before making a purchase. If you are working with an online breeder, check them out with BBB, check to see how long the website has been operating and use software like Google Lens to see if they are replicating photos of puppies or other pets from other sites — a common ploy to pull someone into a puppy scam.
Many people report that once they tried to purchase a pet online, they were asked to send hundreds of dollars more to pay for transporting fees and insurance. These are sure signs of a scam. As mentioned above, only use a credit card, but make sure you do your research first and feel you’re working with a reputable breeder. BBB is here to help.
You can read more about each of these concerns and gain other holiday tips at BBB.org/ holiday. If you’ve spotted an online scam, please report it to BBB ScamTracker. You can call BBB at 423-266-6144 or email us at tngabbb@chattanooga. bbb.org.