‘Tis the season of shopping and unfamiliar purchase experiences. As we all navigate the gift giving expectations of the holidays, we also see a rise in holiday scams and fraud that aim to take advantage of unsuspecting shoppers.
In this article we explore some of the scams we may be exposed to at this time of year, ways to avoid them and tips for finding businesses to trust.
Be aware of gift card scams
During the holiday season, busy to-do lists may find us scrambling to get a last minute gift and oftentimes gift cards are the easiest solution. And financial pressures may be playing into their popularity this year too: our recent survey of US consumers found that 41 percent are considering opting out of purchasing physical gifts that require wrapping and going digital for gifts instead.
Scammers see this as an opportunity and are on the lookout for ways to get you to pay for valueless gift cards. Whether it be fake websites selling nonexistent gift cards or a seemingly innocent ad in Facebook Marketplace offering discounts on unused gift cards, scammers will try and get you to turn over cash for gift cards they never intend to deliver, or with a zero balance.
Read our guide to spotting gift card scams
Here are a few guidelines to avoid getting scammed when shopping for gift cards:
Purchase gift cards in-person or directly from the business’ website whenever possible.
When purchasing a gift card in-person, check to make sure the packaging and security seals haven’t been tampered with.
If you’re sending a digital gift card, double check the email address and follow up with the recipient to make sure they received the card digitally shortly after it’s purchased.
Be extra cautious when checking a gift card balance online. There have been instances of fraudulent websites claiming to let you know your balance, but when the gift card information is entered on the website, fraudsters steal the information.
While there are some legitimate websites that offer discounted gift cards, be cautious when using third-party sites that sell gift cards at a discount. A good rule of thumb is that if the discount is too good to be true, it’s probably not legit.
If you decide to use a third party website to purchase discounted gift cards, be sure to check their reviews on Trustpilot to ensure you’re buying from a legitimate merchant.
So many packages, so much opportunity for fraud
More online shopping means more package deliveries for households to keep track of and more opportunities for scammers to take advantage of the busy holiday season.
Most of us know that “porch pirates” exist but there are more sophisticated scams you may be exposed to. For example, you may receive a “missed delivery” call asking you to confirm your credit card number or other personal or financial details before a package can be delivered. Scammers assume many households will have so many deliveries pending that they will neglect to check details of a package before handing over private information.
Parcel delivery scams to watch out for all year round
In order to make sure your packages arrive safely and scammers don’t take advantage of the stress and confusion that can occur during the holidays, follow these tips:
Check reviews on Trustpilot before ordering from a new or unfamiliar website to make sure they’re legitimate.
Check the company’s shipping estimate and shipping carrier to make sure you know when to expect the package and from which carrier.
Keep track of what online purchases you’ve made, the amount, and tracking information once it’s provided. The extra organizational step may seem like a headache, but you’ll feel better knowing that you didn’t overlook anything.
Never give sensitive personal information to anyone through phone, email, or in-person, even if they claim to be a representative of a shipping carrier and have an official logo. A carrier may need to see a copy of a valid ID to confirm you are the recipient of a package, but they should not need financial or personal information.
Never pay to receive a package. It is very rare that a package will require payment from the recipient for delivery. If you are unsure, get in touch with the sender of the package and ask them to confirm shipping details.
The season scammers can take advantage of your generosity
People are more susceptible to encountering fraudulent charities or fake fundraising scams during times of increased charitable activity. It’s an unfortunate truth that the season of giving also brings out scammers who are looking to take advantage of those who want to support legitimate charities and non-profits. So we’ve summarized a few of our best tips to avoid sending well-meaning funds to dishonest organizations:
Donate to registered non-profits when possible and check their website for detailed information about their mission and how their funds are used.
Look to government agencies or watchdog groups such as Charity Commission and Guidestar to verify that the non-profit organization you are supporting is legitimate.
Be extra cautious when using crowdfunding sites. There are many examples of individuals using crowdfunding websites to scam consumers so try and find third party sources such as friends, family, or local news stories to verify the legitimacy of a crowdfunded cause.
Use secure payment methods when donating online. It’s a red flag if a charity or individual is only willing to accept cash or upfront payment methods such as money orders, wire transfers, pre-loaded cards, or electronic currency.
Charity scams: How to make sure your money goes to the right cause
Scammers go phishing during the holidays
With increased online shopping this holiday season comes increased scamming opportunities. We’re likely to be inundated with emails and advertisements offering us sales and deals, and generally reminding us about all the money we need to spend (or have already spent). With so much cyber information coming through our screens, it’s easy to be less scrupulous about privacy and security than we normally are.
Scammers will take advantage of this and send “phishing” emails hoping to get our personal or financial information. Phishing scams are wide and varied but during the holidays they come disguised as one of many seemingly innocent subject lines sure to be found in your inbox. You may see imposters pretending to be your favorite brands email you with subject lines advertising great deals such as “Act now for free gift with purchase!” or “Limited time holiday sale.” You may also see emails with vague headlines such as “Your recent purchase” or “Shipping delay.”
These emails often have embedded links that take you to websites intended to steal your information or that can install malware on your computer.
In order to avoid falling victim to a phishing scheme, these are a tips you can follow:
Always check the email of the sender. If it’s one of your favorite brands or a website offering you a discount or deal, the email should reflect their website. Spelling mistakes or an unaffiliated email is a major red flag.
Does the greeting or tone of the email seem off? If so, it’s a red flag. Phishers may use greetings such as “Hi Dear” or “Dear User.” An email with an odd greeting or lots of spelling and grammar mistakes is a sign you may not be looking at an email from a legitimate brand.
If an email repeatedly tells you to “act now!” or creates a sense of urgency around updating personal or financial information, or if the email is threatening in any way, there is a good chance the email isn’t legit.
Finally, if you’re not sure if the email you received from a company or brand is spam, reach out directly to their customer service department to confirm the email came from them.
We know the holidays can be overwhelming and the last thing you want to be concerned with, on top of everything else, is getting scammed. Trustpilot is here to help you navigate this busy time with millions of reviews from consumers just like you.
Reviews can help you verify new purchase experiences so you can buy with confidence. And if you’ve had an experience with a business this holiday season that you’d like to share with others, leave them a review on Trustpilot.
Trustpilot is a review platform that is open to all. The companies and profile pages referenced in this article are provided for informational purposes only and are not recommended, endorsed by, or representative of the views of Trustpilot. The Trustpilot companies linked in this post are expected to abide by Trustpilot’s Guidelines, but have not been reviewed for compliance.
