Holiday Hoaxes: Protect Yourself from These Four Online Scams

It’s the most wonderful time of the year—a season of goodwill, generosity, and joy. Unfortunately, it’s also a prime time for online scammers to try and exploit good holiday feelings for their personal gain. 

Here are four online scams to watch out for, so you can protect your money, guard your identity, and keep your holidays merry! 

Charity Scam: 
You see a heart-wrenching story, which ends with a request for money.

Red Flag! Be cautious anytime someone solicits donations by appealing to your emotions—especially if you don’t know them or their organization.

What To Do: 

• Avoid donating to strangers.  Photos, stories, and information can be fake.
• Research before you give. If a nonprofit organization is unfamiliar, look it up on trusted monitoring sites like Give.org or CharityWatch.org.
• Search for signs of fraud. Type the charity’s name along with “scam” or “fraud” into a search engine to check for any warnings. 

“Secret Santa” Scam: 
You get an invitation to join a gift exchange that promises you dozens of presents—wine, books, or other items. The instructions tell you to send a gift to the first name on a list of people, add your own name to the bottom of the list, and send the invitation to your friends. 

Red Flag! Activities like this, which rely on recruiting more participants to stay afloat, are pyramid schemes—and are illegal. If you send a gift, it’s doubtful that you’ll get anything in return, and the scammers will have your contact information.

What To Do: 

• Ignore and report. Don’t participate in the exchange, and notify the social media platform where the invitation appeared.
• Protect your privacy. Always guard your personal data, including your contact details.
• Think before sharing. Don’t get your friends involved in a scam.

Social Media Ad Scam: 
You notice an ad for a popular toy, sports jersey, or another hard-to-find item—and it’s being offered for an unbelievable price by a company you’ve never heard of. 

Red Flag! Remember the old saying: If something sounds too good to be true, it probably is! You might end up with a cheap knock-off or nothing at all, and the seller may vanish after taking your money.

What To Do: 

• Stick to trusted retailers. The safest option is to buy from recognized stores.
• Research unfamiliar sellers. Search the business name online, along with terms like “review,” “scam,” or “fraud.” Also, check the Better Business Bureau’s Scam Tracker.
• Take your time. Avoid making an impulse purchase. 

Fake Website Scam: 
You see an ad for a fantastic deal with a link to a popular store’s website. 

Red Flag! Again, if the offer is impossibly good, it probably isn’t real—even if the ad seems to be from a well-known business. Scammers are experts at impersonating legitimate websites. If you click a link, you could expose your computer or smartphone to malware or phishing attempts.

What To Do:

• Look for warning signs. The URL has spelling mistakes or odd characters (such as replacing the letter l with the number 1), the website’s format seems off, or the pictures aren’t clear.
• Use safe browsing. Many web browsers provide safe browsing features to flag suspicious sites. You can also check a website’s safety using Google’s Safe Browsing technology.
• Don’t click. Search for the business’s online address, type it in yourself, and check their website for the offer.

Don't Let Scammers Steal Your Cheer

Here are more ways to stay safe during this holiday season:

• Keep your user names and passwords private. Legitimate organizations won’t ask you for this information, not even for customer service purposes.
• Pay with a credit card. With cash, debit cards, and payment apps, once you’ve paid the money, it’s gone. With a credit card, you can dispute charges if you don't get what you ordered.
• Monitor your bank and credit card accounts. Frequent checks allow you to quickly detect and report unauthorized transactions.
• Find more information from Excite Credit Union. Discover our helpful scam-prevention tips and resources.

By staying alert and taking precautions, you can enjoy a scam-free December and a safer New Year.

Happy Holidays from Excite, The Community’s Credit Union!