Holiday Financial Scams: What to Watch Out for This Season
The holidays bring out the best in people—and unfortunately, the worst in scammers. Every year, fraudsters ramp up their schemes during the shopping season, targeting people when they're busy, distracted, and more likely to let their guard down.
With increasingly sophisticated technology and AI-powered tools, scams are getting harder to spot. Here's what you need to know to protect yourself and your family this holiday season.
The Scams to Watch For
Fake Shipping Notifications
You get a text or email claiming there's a problem with a package delivery. It looks legitimate—complete with real company logos. The message says you need to click a link to reschedule delivery, pay a small fee, or verify your address.
The link takes you to a fake website that steals your information or installs malware.
How to avoid it: Don't click links in unsolicited messages about deliveries. Open your shipping company's app or website directly and check your tracking there.
Charity Scams
Fake charities with heartbreaking stories contact you asking for donations. They often have names similar to legitimate organizations and pressure you to donate immediately via gift cards, wire transfer, or cryptocurrency—all red flags.
How to avoid it: Research any charity on Charity Navigator or GuideStar before giving. Legitimate charities don't pressure you or demand immediate payment through unusual methods. Go directly to the charity's official website rather than clicking links.
Too-Good-to-Be-True Online Deals
Fake shopping websites advertise incredible deals on popular items. You place an order, your card gets charged, and you never receive anything—or you get a cheap counterfeit.
How to avoid it: Stick to retailers you know and trust. Research unfamiliar websites before purchasing. Use a credit card (not a debit card) for better fraud protection. Be suspicious of websites that only accept wire transfer, cryptocurrency, or gift cards.
Gift Card Scams
Someone calls claiming to be from a government agency, utility company, or even a family member in distress. They say there's an urgent problem and you need to pay immediately using gift cards.
How to avoid it: No legitimate organization will ever ask you to pay with gift cards. Not the IRS, not your utility company, not your bank. If someone demands gift card payment, it's a scam. Hang up.
Social Media Marketplace Scams
You find a great deal on Facebook Marketplace or similar platforms. The seller asks you to pay outside the platform—through Venmo, Zelle, or wire transfer. You send money and the seller disappears.
How to avoid it: Only use payment methods with buyer protection. Complete transactions through the platform's official payment system. Meet locally in public places. Be wary of sellers who want to move conversations off-platform.
Phishing Emails Disguised as Receipts
You receive an email that looks like it's from Amazon, PayPal, or your bank, showing a purchase you didn't make. The email makes you panic and click a link to dispute the charge. The link takes you to a fake login page that steals your credentials.
How to avoid it: Don't click links in emails about unauthorized purchases. Go directly to the company's website or app to check your account. Enable two-factor authentication on all financial accounts.
AI-Powered Voice Scams
Scammers use AI to clone voices, making calls sound like they're from family members in trouble. The "grandparent scam" now sounds terrifyingly real—someone calls pretending to be your grandchild needing money urgently.
How to avoid it: Verify identity by calling back at a number you already have—not the number they're calling from. Ask questions only the real person would know. Never send money based on a phone call alone.
General Rules to Stay Safe
- Slow down. Scammers create urgency. If someone pressures you to decide immediately, that's a red flag.
- Verify independently. Don't use contact information provided in suspicious messages. Look up official numbers yourself.
- Use strong, unique passwords. Use a password manager. Don't reuse passwords across sites.
- Enable two-factor authentication. This adds security even if your password is compromised.
- Monitor your accounts. Check statements regularly for unauthorized charges.
- Be skeptical of unsolicited contact. Legitimate companies rarely ask for personal information, passwords, or immediate payment out of the blue.
What to Do If You've Been Scammed
Act quickly:
- Contact your bank or credit card company immediately
- Change your passwords
- Report it to the FTC at ReportFraud.ftc.gov
- Monitor your credit
- Don't be embarrassed—scammers are professionals
Protecting Elderly Family Members
Older adults are often targeted because they may be less familiar with online threats. Have a conversation with elderly relatives about common scams.
Set up a family rule: before anyone sends money for an emergency, call another family member first to verify. This simple step prevents a lot of heartache.
Stay Alert, Not Anxious
The goal isn't to make you paranoid. Most people and organizations are legitimate. But during the holidays, when we're busy and distracted, it pays to slow down and think before clicking, calling back, or sending money.
Trust your instincts. If something feels off, it probably is.
