Fraud alert: 12 Christmas scams to avoid (from pyramid schemes to fake jobs) and what to do
Last year, consumers lost nearly $8.8 billion to scams and fraud, according to the Federal Trade Commission.
From misleading social media ads to employment scams to fake dogs, the Better Business Bureau found these are the top 12 scams you should know about ahead of Christmas 2023:
Top 12 holiday scams
Consumers should exercise caution with social media ads promoting discounts, holiday events, jobs, donation requests, and direct messages from strangers. Requests for payments by wire transfer, through a third party or by a prepaid debit or gift card are red flags, according to the BBB.
Here are the 12 top Christmas scams, according to BBB:
Misleading social media ads: The BBB found online purchase scams were the most commonly reported. Make sure to research a product before you buy it.
Social media gift exchanges: In this scam, you might be asked to buy $10 gifts online, send your email to a “pay it forward” where participants send money to strangers, or buy a gift for your “Secret Santa Dog.” This may also be an illegal pyramid scheme, according to BBB.
Holiday apps: Take caution around holiday-themed apps (such as video chatting with Santa, tracking his sleigh or watching Santa feed live reindeer) and review the apps’ privacy policies.
Fake texts that say you’ve been hacked: Don’t click the link in the text. It might say there’s been suspicious activity on your account (such as Amazon, Netflix or your bank) and urges you to act immediately. Contact the business directly instead to make sure our information is safe.
Free gift cards: Watch out for phishing emails that ask for personal information to get a free gift card. (Is anything good in life free?) Don’t click on any links.
Temporary holiday jobs: While retailers generally increase hiring during the holiday season to meet demand (and this can be a good way to make extra money), if a job offer seems too good to be true, it probably is. Be wary of scams aimed at stealing your money and personal information. And don’t do any work before you’re hired.
Look-alike websites: Be cautious of links to look-alike websites that may pop up in your email inbox: These may trick you into downloading malware, making dead-end purchases or sharing personal information, according to the BBB. You can check the business’ listing on BBB.org/search to verify it.
Fake charities: It may be giving season, but look out for fake charities and scammers. The BBB recommends avoiding spur-of-the-moment decisions to donate to organizations you don’t know. You can verify a charity at Give.org.
Fake shipping notifications: Scammers are taking advantage of the increase in online shipping to send phishing emails trying to get you to click a link that may download malware, allow access to your private information, or trick you into paying new shipping fees.
Advent calendars: Research an advent calendar before you buy by reading reviews and looking up the company on BBB.org to avoid receiving poor products, incomplete orders, or not receiving the product at all.
Top holiday wishlist items: If you’re buying a popular toy (such as Barbie and Ken dolls or Paw Patrol headphones) from platforms such as Facebook Marketplace, watch out for cheap counterfeits and knockoffs.
Puppy scams: Don’t send money to someone selling a pet before you see the animal in person.
How to report fraud
You can report a scam to the Federal Trade Commission at reportfraud.ftc.gov, the FBI’s Internet Crime Complaint Center at IC3.gov .
You can also report it to the BBB through the Scam Tracker.
What if you got scammed?
What do you do if you have already paid a scammer? Here’s what the FTC recommends.
Whether you paid with a credit or debit card, a scammer made an authorized transfer from your bank account, you paid with a gift card or sent a wire transfer, you need to contact your bank or the company, let them know it was a scam and ask for a refund.
If you paid with cryptocurrency, that’s usually not reversible — but ask anyway.
If you sent cash, you can call the postal service at 877-876-2455 and ask them to intercept it.
What if you gave up your personal information?
If you gave out your Social Security number, go to IdentityTheft.gov to report it.
If you gave out your username and password, create a new password and change it.
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