Staying safe from holiday fraud
As millions of people shop for last-minute Christmas gifts, it’s easy to overlook the hidden threat of scams targeting holiday shoppers.
Fraudsters are well aware the holiday season can make us a little less cautious, searching and buying gifts from online sites we may not have used before as we search for a thoughtful present or a great bargain. They target shoppers with fake discounts, items that don’t exist or playing on our emotions with charity traps. reeling in customers to think they’ve got a real bargain. But, when it comes to shopping online, if it’s too good to be true, then it probably is.
According to Action Fraud, tens of thousands of people fell victim to online fraud last festive season. Ben McConnachie, Hodge fraud expert, has outlined “the 12 scams of Christmas”, along with tips to protect yourself this season.
1. Fake delivery texts
Have you received a text about a missed delivery or urgent action? This scam is called ‘smishing’ and uses fake texts or calls to in attempt to trick you into providing personal or payment information. By using cheap technology to send you a text or automated call, the fraudsters may claim to be from a trusted source such as your bank, a delivery company or even the police.
To stay safe, avoid clicking any links in unexpected texts and report suspicious messages by forwarding them to 7726, the network operator. If you do click on the text and pay money unknowingly, call your bank immediately.
2. Fake products or non-existent items
When popular products sell out, scammers step in. They offer non-existent items on lesser known sites usually for a bargain price. Ads on social platforms such as Instagram and TikTok will lure in eager consumers – but always stop and think before you buy. These types of scams are hoping that the ‘panic buying’ mode of shoppers will set in, opening the door to fraudsters advertising ‘in-demand’ items.
Stick to retailers and brands you trust. If it’s a new retailer, a quick online search can help you check their reputation or even the comments section if they’re advertising on social. Those who’ve been scammed will be quick to comment here too. You can also do your own research, look out for dodgy website addresses with spelling mistakes, missing contact details or vague information at the bottom of the website and make sure you have adequate anti-virus software that flags up untrustworthy sites.
3. Voucher traps
We all want to spend a little less at Christmas and using vouchers and discount codes is a great way to trim off some of the cost. Unfortunately, phony vouchers can be another way scammers try and part you with your cash. They create false websites advertising ‘Discounts and Voucher Codes, sending targeted emails to draw you in. However, these websites or emails will often be infected with malware which can infect your computer with viruses.
If you receive any anonymous discounts – ones where you will need to click a link – play it safe and delete the email. Also, use a reputable anti-virus product on your laptop, make sure it’s regularly updated and always turned on.
4. Romance scams
Christmas is a time for family and friends but it’s also a time when some people suffer from extreme loneliness. Lonely, vulnerable adults are the perfect prey for scammers who will seek them out by email or social media. They will try and create an emotional bond with the individual over time and eventually ask for some financial support or money to pay for transport so they can meet up.
Always guard your privacy when chatting online and be careful about the information you share about yourself. Never send money or share personal details with someone you haven’t met in person. Trust your instincts – if something doesn’t feel right, it probably isn’t.
5. Holiday scams
Booking a holiday over the holidays can seem like a perfect gift. Watch out for fraudsters who will create fake travel websites with tempting holiday deals to entice customers with the promise of bargain prices for luxury breaks.
If the holidays seem unusually cheap, it should ring alarm bells. Airlines tend to set the prices of flights so if they are significantly less, they could be a scam. Always look out for ABTA and ATOL protected holidays and always pay by credit card – if they don’t accept them, steer well clear.
6. Online auctions
We all want to get something for nothing and Christmas is the best time to feel like you’ve bagged a bargain. But be aware of online auctions promising the latest iPhone for rock bottom prices, even if it says it is new in the box or an “unwanted” gift. Bogus sellers are unlikely to have reviews or feedback and will often demand immediate payment, often by paying them direct. Don’t do this – always use recommended methods of payment, like PayPal.
Always research the seller before you commit and remember, even if there is feedback, it might not be a genuine review. And if you’re collecting something you’ve bought, take someone with you or let someone know where you are going
7. Fake IT support scams
The scam that’s not just for Christmas, it’s all year round – but they do increase over the holidays. Scammers may send emails from claiming they’ve detected issues I your device and offer “support” for a fee. Don’t click on these mails, which are extremely prevalent around Christmas. Real IT providers won’t contact you out of the blue to “fix” your computer.
8. Fake Christmas charities
As you walk through town ticking off your Christmas shopping list, you will more than likely be approached by a charity worker asking for your support by providing a donation or subscription. While many of these charity workers are genuine, some aren’t, and the money is going straight into the wallet of a scammer. Stick to registered charities and don’t provide personal information in the street if you’re suspicious. You can also ask to see their ID and if it still doesn’t feel right, don’t donate.
9. Loan and finance scams
It’s easy to overspend at Christmas time and scammers take advantage by offering “quick loans” and “unbeatable rates”. Authentic lenders won’t ask for an advance fee, so if they do, say no.
Before taking out a loan, do your research by verifying the loan or investment company online and always read the terms and conditions. Never set up a loan or make an investment as a result of a cold call and go to http://www.fca.org.uk for a list of authorised loan firms and top tips to avoid dodgy investments.
10. Ticketing fraud
We all want to create lovely memories at Christmas and tickets to events make great gifts – but not if you purchase them from a fake site.
Fraudsters often try and sell tickets for events which have already sold out, so make sure you only look for tickets from reputable secure websites. You’ll know if they’re secure as they will have a padlock un the url. Never share your bank or credit card details on public or shared computers.
11. Christmas e-cards
E-cards are a fun way to send holiday greetings, but cyber-criminals have created their own versions containing malware which cause huge problems if you open them. Once opened, it will try and collect personal data such as financial information, passwords and usernames which can then be used to commit financial fraud.
If you receive an anonymous e-card, don’t open it, delete it and make sure you have a reputable anti-virus software on your device. If you do think you have fallen foul by clicking on an e-card, try switching it off and disconnect from the internet. Also contact your bank and change your passwords.
12. Mobile malware apps
If you get a smartphone or tablet for Christmas, make sure you have the latest software installed for increased protection because scammers are constantly developing new ways to infect these devices via malicious apps or infected URLs. Only download apps from sites like Google Play and Apple Store and always check ratings and reviews before downloading a new app.
Stay safe and enjoy the festive season!
Following these tips will help keep the scammers at bay so you can focus on the festivities with family and friends. Stay alert and you’ll be one step ahead to stay protected.
This article is correct at time of publishing and for general information purposes only. We recommend you speak to a professional financial adviser for advice. You can find a financial adviser and further personal finance information at unbiased.co.uk.
