Season of Giving or Taking? Protect Yourself from Holiday Scams

The holiday season is a time for joy, connection, and generosity. Families gather to celebrate, communities embrace the spirit of giving, and stores offer enticing sales to meet the demands of holiday shoppers. Unfortunately, the same excitement and busyness that make the season special also create the perfect environment for scammers to strike. From online shopping and travel to charitable giving and financial assistance programs, holiday scams exploit the distractions and goodwill of unsuspecting victims.

Social engineering, phishing, credit card fraud, and other malicious tactics become increasingly common during the holidays. Scammers prey on trust and urgency, using sophisticated methods to steal money and personal information. Knowing the warning signs and understanding how these schemes work can help you protect yourself, your loved ones, and your finances. This guide explores some of the most prevalent holiday scams, providing practical advice to stay one step ahead of the fraudsters and keep the season merry and bright.

Scam #1: SNAP Benefits Theft

The holidays should be a time for gathering with family and sharing meals, but for many relying on SNAP benefits, scammers turn this season into one of frustration and hardship. Fraudsters use tactics like card skimming, phishing, and hacking to access and steal benefits, leaving victims without resources for holiday meals and essentials.

How It Works

• Card Skimming: Devices are placed over legitimate card readers to capture card details and PINs.
• Phishing Messages: Fraudulent texts or emails trick recipients into revealing account details under the guise of resolving an issue.
• Unauthorized Transactions: Stolen details are used to make fraudulent purchases or withdraw cash.

How to Protect Yourself

• Change PINs Regularly: Update your PIN frequently to reduce the chances of unauthorized access.
• Monitor Transactions: Check your benefit account regularly for unauthorized charges.
• Avoid Sharing Information: Government agencies will never request account details via text or email.

Victims should report stolen benefits immediately to their provider for assistance in recovery and reimbursement.

Scam #2: TSA PreCheck Email Scams

With increased holiday travel, scammers impersonate federal agencies like the Transportation Security Administration (TSA) to exploit travelers. Fraudulent emails claim to be from TSA, requesting payment for PreCheck services or other travel-related fees.

How It Works

• Fake Emails: Scammers craft emails that appear official, often using logos and language similar to legitimate communications.
• Links to Phishing Sites: Clicking on links redirects victims to malicious sites designed to steal personal or payment information.
• Sense of Urgency: Messages often stress immediate action, creating panic and prompting hasty decisions.

How to Protect Yourself

• Visit Official Websites Directly: Never click links in unsolicited emails; manually type web addresses into your browser.
• Verify Communications: Government agencies like TSA do not request payment via email.
• Report Suspicious Emails: Notify the Federal Trade Commission (FTC) if you receive fraudulent messages.

Approach unexpected emails cautiously, especially those requesting payment or personal details.

Scam #3: Delivery and Package Scams

During the busy holiday season, delivery-related scams spike. Fraudsters target consumers with fake delivery notifications or phishing emails, while package theft by so-called “porch pirates” also becomes more prevalent.

How It Works

• Phishing Emails or Texts: Messages appear to be from reputable delivery companies, claiming issues with delivery or requesting updated information.
• Fake Missed Delivery Tags: Scammers leave tags on doors with instructions to call a number or visit a malicious website.
• Porch Piracy: Thieves steal packages left unattended at homes.

How to Protect Yourself

• Track Packages Directly: Use official tracking tools on retailer or courier websites.
• Secure Your Deliveries: Request signature confirmation, use delivery lockers, or ask a neighbor to retrieve packages.
• Be Wary of Missed Delivery Notices: Check for logos, grammar mistakes, and other inconsistencies that signal fraud.

By staying on top of your orders, you can avoid falling victim to these scams.

Scam #4: Online Shopping Scams

Holiday shopping often involves online purchases, making it a prime time for scammers. Fake websites, social media ads, and third-party marketplace scams are common tactics used to steal payment information or money.

How It Works

• Fake Websites: Scammers create counterfeit sites that mimic legitimate retailers, often with too-good-to-be-true deals. We recently wrote a blog post on this very topic!
• Misleading Social Media Ads: Fraudulent ads direct shoppers to bogus websites to collect payment information.
• Third-Party Scams: Fraudsters pose as legitimate sellers in online marketplaces, delivering subpar or no products at all.

How to Protect Yourself

• Verify URLs: Ensure websites use “https” and check for misspellings or unusual domain names.
• Research Sellers: Look up reviews and ratings before making a purchase.
• Use Secure Payment Methods: Credit cards offer fraud protection, unlike wire transfers or cryptocurrency.

Avoid shopping impulsively; always verify the legitimacy of deals and sellers.

Scam #5: Charity Fraud

The holiday spirit of giving is exploited by scammers creating fake charities to siphon donations. These schemes often target people moved by high-profile disasters or holiday campaigns.

How It Works

• Copycat Charities: Fraudsters use names and logos resembling legitimate organizations.
• Emotional Appeals: Scammers craft convincing stories to evoke sympathy and generosity.
• Suspicious Payment Requests: Donations are requested via cash, gift cards, or cryptocurrency, which are harder to trace.

How to Protect Yourself

• Donate to Known Charities: Support established organizations or verify new ones through resources like Charity Navigator.
• Avoid Unusual Payment Methods: Use credit cards or checks for added security.
• Check the Website: Legitimate charities often use “.org” and provide transparent contact details.

By verifying charities, you ensure your contributions make a real difference.

Scam #6: Utility Bill Payment Scams

The holidays often bring higher utility bills as temperatures cool, families gather, and more energy is used, but scammers seize on this to trick consumers into making fake payments. Fraudsters impersonate utility companies, using scare tactics like threats of immediate disconnection to push victims into compliance.

How It Works

• Spoofed Caller IDs: Scammers manipulate caller ID to display utility company names.
• High-Pressure Tactics: Victims are told to pay immediately to avoid disconnection.
• Unusual Payment Methods: Payments are requested via apps like Venmo or Zelle, or through cryptocurrency.

How to Protect Yourself

• Contact Your Utility Directly: If you receive a suspicious call, hang up and call your utility provider using the number on your bill.
• Know Company Policies: Utilities typically provide multiple notices before disconnection and do not demand immediate payment via unconventional methods.
• Report Scams: Notify your utility company and the FTC if targeted.

Remain cautious with unexpected calls or payment demands.

Conclusion

The holidays are meant to be a time of joy and connection, but scams can quickly sour the season. From stolen benefits and fake charities to delivery fraud and online shopping traps, scammers use a variety of tactics to prey on unsuspecting victims. Understanding how these schemes work and staying vigilant can help you protect your finances, personal information, and peace of mind.

This season, take a proactive approach to your security: monitor accounts, verify communications, and think twice before clicking on links or sharing information. Report suspicious activities to the appropriate authorities to prevent further harm. By staying informed and cautious, you can focus on what truly matters—celebrating the holidays with the people you care about. Let’s work together to make this season a safe and joyous one for everyone.

Compass IT Compliance is committed to helping organizations stay secure during the holidays and beyond. We provide expert cybersecurity and compliance solutions to protect against scams, fraud, and other evolving threats. By partnering with us, businesses can safeguard their sensitive information, strengthen defenses, and focus on what truly matters—delivering value to their customers and communities with confidence. Contact us today to learn more.