Financial scams tend to pop up more around the holidays. Consumers are busy, buying lots of goods and more than willing to shell out extra cash for those in need. While generosity is the theme of the season, it’s vital consumers use caution when shopping online, donating to charities, and using apps. To help you stay alert and financially secure, we’ve compiled a list to help you avoid holiday scams:
Fake Charities
Fake charities are among the most popular holiday scams, soliciting consumers over the phone, email and through direct mail. To avoid holiday scams like these, only donate money to charities you know and trust. If a new charity attracts your interest, be sure to verify it on Charity Navigator or the BBB Wise Giving Alliance. If you can’t locate the charity in question, use the online search tools to find a different charity with a similar mission.
Fraudulent Travel Packages
Travel costs can skyrocket during the holidays, steering many consumers online in search of deals. Take time to research your options, and again, only purchase travel packages from reputable companies you know and trust. Fake travel sites may offer amazing deals on vacation rentals or hotels to lure you into providing personal information that can be used to steal your identity or tap your bank account. This practice is known as “phishing.” Fake travel sites may require customers to pay for all accommodations upfront, and they may not provide a phone number or e-mail address for customer support.
Fake Contest Alerts
Many scammers use telemarketing to tempt consumers with prizes from fake contests. Be very skeptical if you receive a call or text about winning a big ticket item like a luxury vacation. Don’t put down a deposit or provide any personal data. It is likely a scam, especially if you can’t recall entering the contest. Be sure to alert children, seniors and others who may not be cell phone savvy about these types of scams.
Fraudulent Apps
Santa trackers, virtual menorah, Zoom visits with Santa — there are many apps available that promise holiday cheer in the palm of your hand. Just be very careful which ones you choose and how you use them. Some of them, particularly free ones, can be vehicles to install malware on your devices. And even if they’re not, they may be so loaded down with ads that they’re basically unusable. If kids want to download any holiday apps, you should choose for them and delete the app off the device after the holiday season.
Employment Scams
Businesses often need to hire extra help for the holidays. And would-be employees are motivated to earn extra holiday cash. That’s the perfect equation for scammers to slip into the mix. Most of these will involve promises of high-paying online work-from-home opportunities, but the catch is you must pay up-front for training and supplies. That’s a red flag. No legitimate employer will ask you to pay to work for them. And if there are new employee costs — such as uniforms — those expenses should be deducted from upcoming paychecks, not paid out-of-pocket.
Naming a Star
It may sound appealing to have your loved one’s name immortalized in the night sky, but it’s not really going to happen. You are simply paying for a plaque – not an actual star. These types of services have been around for a while, but consumers still fall into the trap. The truth is, the International Astronomical Union is the only organization that names stars. You would be much better off making a gift or spending your money in another manner.
