Protecting Your Finances During the Holidays

The holiday season is a time for joy, celebration, and, unfortunately, an increase in scams as fraudsters look to take advantage of people’s festive goodwill and spending habits. Understanding the tactics scammers use can help you protect yourself and your loved ones from falling victim to fraud. Here are some of the most common holiday scams to watch out for—and tips to keep your finances secure.

1. Phishing Emails and Fake Websites

Scammers often create fake websites or send phishing emails disguised as promotions or shipping notifications. These emails may ask you to “verify” personal information or provide login credentials. Some even appear to come from well-known retailers or package carriers like FedEx or UPS.

How to Protect Yourself:

• Double-check the email sender and URL before clicking any links.
• Go directly to the retailer’s website instead of clicking on email links.
• Be cautious about deals that seem too good to be true, as they often are.

2. Gift Card Scams

Gift card fraud is common during the holidays. Scammers may ask for payment via gift cards, claiming it’s the fastest way to process a transaction. In other cases, they tamper with physical gift cards in stores by scratching off the code and taking the balance once it’s loaded.

How to Protect Yourself:

• Never pay for a service or product via gift cards—legitimate businesses won’t ask for this.
• If buying a gift card in-store, check the scratch-off area on the back of the card to ensure it’s intact.
• Consider purchasing gift cards directly from the retailer’s website or store.

3. Charity Scams

Fraudsters know that people tend to be more charitable during the holidays and exploit this by creating fake charities or posing as legitimate organizations. They might ask for donations via phone calls, emails, or social media posts.

How to Protect Yourself:

• Research the charity before donating, using sites like Charity Navigator or the BBB Wise Giving Alliance.
• Avoid donating over the phone unless you’re familiar with the organization.
• Be cautious of high-pressure tactics—legitimate charities will allow you time to research before making a donation.

4. Fake Online Shopping Sites

With online shopping at its peak during the holidays, scammers create fake websites offering popular products at deeply discounted prices. These sites may look professional but are often traps to collect credit card information or deliver counterfeit goods.

How to Protect Yourself:

• Stick to reputable retailers and verify any unfamiliar sites before purchasing.
• Check for “https” in the URL and look for signs of security, like a padlock symbol in the browser.
• If prices are unbelievably low, it’s probably a scam. Trust your instincts and be skeptical of deals that seem too good to be true.

5. Delivery Scams

Scammers know that people are ordering more online during the holiday season and may send fake delivery notifications or alerts. These messages often contain malicious links, which, if clicked, can compromise your personal information.

How to Protect Yourself:

• Track your packages through the official websites of delivery services rather than clicking on links in emails or texts.
• Verify the source before entering any personal information.
• Be wary of unsolicited delivery messages, especially if you’re not expecting a package.

6. Social Media Giveaways and Sweepstakes Scams

Social media is flooded with “giveaways” and “sweepstakes” during the holiday season, but not all are legitimate. Scammers often use these fake promotions to collect personal data or even ask for credit card information to claim a prize.

How to Protect Yourself:

• Be cautious of giveaways asking for sensitive information or payment to claim a prize.
• Verify the social media page and look for official badges (such as a blue checkmark) on the account.
• Remember, legitimate giveaways will never ask for payment upfront.

Final Tips for Staying Safe This Holiday Season

While the holiday season brings cheer, it also attracts scams. Stay vigilant and practice safe online habits:

• Use strong, unique passwords and enable two-factor authentication where possible.
• Regularly monitor your bank statements and account activity for any unusual transactions.
• If you suspect fraud, report it to your bank immediately to prevent further damage.

If you ever find yourself in need of help or guidance, please don’t hesitate to reach out to your Deerwood Bank Personal Banker. We’re happy to help however we can. Happy holidays from our families to yours!