Beware of Holiday Scams
For me, the holidays are about spending time with family and friends to celebrate together. Unfortunately, for some the holidays are an opportunity to perpetrate scams to steal from others. Cyber threats increase during the holidays, and the scams have become more sophisticated.
In an effort to keep you from being an unsuspecting victim this holiday season, I’ve prepared a list of items to be aware of. Keep in mind, this isn’t an exhaustive list. For every scam you can think of, there are plenty more we haven’t thought of, so be on your guard.
Phishing Attacks. A phishing attack is when cybercriminals send an email or text message that pretends to be from a retailer, bank, shipping company, etc., and requests you log on to address some item that needs attention. The "time-sensitive" issue they are trying to "hook" you with could be a problem with your account, a message, or a delayed shipment, etc. These emails or text messages look remarkably real. They try to manipulate you to click on a link in the email or text that then takes you to a page that also looks real. You then put in your username and password, and now they’ve captured your information for that institution (and maybe others if you use the same password on multiple sites).
One simple defense against phishing is to never click on a link inside of an email or text message. Instead, leave the email and log into the institution as you normally would (i.e., through the app or web site). Recently, I received an email purporting to be from my local bank (where I have a checking account) indicating I have an urgent message waiting. Instead of clicking the link, I went to my phone and logged into my bank through the app as I normally would. There was, of course, no message. This was a phishing scam. Had I clicked the link and entered my data, the criminals would have had all my banking information.
Password Hijacks. Every web site or app you log into should have a unique password, and you should never use the same password twice. In the phishing situation mentioned above, should you inadvertently click on a scam link, and the criminals obtain your username and password, you can at least limit the damage to only that site if you never use the same password anywhere else.
Gift Card Fraud. Gift card fraud is bigger than you’d think. The Federal Trade Commission reported that there was $54.4 million in gift card fraud in the 4th quarter of 2024 alone.
There are several types of gift card scams, but there are generally two main forms: either you purchase a bogus gift card from a fraudulent party, or a thief steals the balance of the card before the holder can use it (called “draining”). Here’s how they work:
The Fraudulent Party. This can take the form of someone pretending to be a friend/family member who needs a gift card in an emergency, buying gift cards from third-party sites, or sites claiming you won a prize and need to activate a gift card. In all these cases, the fraudster wants you to purchase the gift card online, where they can steal your information. For the family/friend scam, don’t send any funds before confirming who it is. Call a friend or family member on a different line to confirm it’s them. And, if you don’t recognize the phone number, it’s probably a scam. For the third-party sites, stick to reputable retailers. And for the claims of a prize, legitimate giveaways don’t require you to pay anything or provide your personal information to get a prize.
Stolen Balance. In this case, a scammer tampers with unpurchased physical gift cards on display in stores using handheld devices to capture card information on the gift cards. They will then monitor the balances frequently to determine when the card has been activated and then they will create a counterfeit version in order to drain the balance. You can try to avoid this scam by checking for signs of tampering on physical cards and not purchasing them if something seems off. You can also run your finger over the back of the card to see if a sticker has been applied over the barcode. Also, check out the other gift cards in stock to see if there are any discrepancies in packaging between the other gift cards and the card you’re considering buying.
Holiday “Malvertising”. While online you will see banner ads promising sales on items you’re interested in. Often, these ads can be malware, or malicious advertisements that, when clicked, can infect your computer. Be very suspicious before clicking on something that seems too good to be true.
Skimming. Skimming is a type of fraud where criminals steal your credit card information during a legitimate transaction using a device called a skimmer. The typical situation for skimming is a small device placed on or inside the legitimate credit card reader, and the skimmer reads and records your credit card data. If you’re using a debit card, it can also steal your PIN. You can prevent this from happening in a few ways. First, look closely at the credit card reader you’re using. Many times, the skimmer is loose. Next, if your card can tap instead of insert, that’s usually a better function. Finally, monitor your credit card use often. Check out your account daily – especially during the holidays - to make sure no unauthorized purchases have been made. Most credit card companies and banks have a feature that you can receive a text message when purchases are made. This is a very good feature you should consider using.
Social Media Scams. The proliferation of social media has brought along with it the proliferation of social media scams. A common one is when you receive a “friend” request from someone, and they turn out to be a scammer who eventually asks you for money. There are other social media scams as well. You can avoid these by never responding to funding requests through social media. An old-school phone call works.
I hope this article doesn’t put a damper on your holiday spirit. I believe that almost all people out there are good people who want to enjoy the holidays, but we still have to be extra vigilant to prevent us from getting scammed.
Of course, if you have any questions please don’t hesitate to contact me.
Enjoy the holidays!
Joe
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