Buzz
With the holidays in full swing, it’s easy to get overwhelmed. There are parties to host, cards to send, and gifts to buy – all packed into just a few weeks. Amid the chaos, don’t let the pressure cloud your judgment. Be cautious of scams targeting holiday shoppers.
Fraudulent Store Apps
The FBI recently issued a warning about fraudulent app scams. After downloading these apps, they steal your personal data from your device.
To avoid this, take a moment to look past just the brand’s logo when downloading an app from Google Play or the Apple Store. It’s tempting to search for an app and download the first one that seems right. Chris Mason, co-founder of Branding Brand, highlights several warning signs to be aware of, such as typos and awkward phrasing in app descriptions. Be sure to check customer reviews as well. A high volume of one-star ratings or complaints about intrusive ads could signal that the app is a scam.
Counterfeit Online Stores
The FBI also issues a warning about fake offers on unknown websites. While it may seem easy to spot a fraudulent online store, scammers are skilled at making these sites appear legitimate. As Inc.com points out, many of these sites offer competitive prices on most items, but they list some products at extremely low prices to attract customers. The regular-priced products help these sites rank higher in Google search results, but just because a site appears in search results doesn’t guarantee it’s trustworthy.
In some cases, scammers may even create fake social media accounts and ads to promote their “bargains.” These posts often feature coupons, holiday sales, contests, or free gift cards, and are usually paired with an online survey used to collect your personal information. Here are some signs that you may be dealing with a counterfeit shopping website:
The URL is convoluted, with hyphens like “givenchy-gear-for-less.com,” or it may include a popular brand name in its domain (like zara.domain.com).
The contact email comes from a generic email provider like Hotmail or Google instead of the store’s own domain. It may also feature random letters or numbers, a typical fake email address.
The product selection is chaotic. As Complex.com observes, “When was the last time you saw Angry Birds T-shirts sharing retail space with Balmain jeans?” Scammers target popular brands but offer no real curation or organization.
Generally, if you come across an offer that seems too good to be true, it probably is. However, there are plenty of great holiday deals available, so this rule doesn’t always apply. If you find an incredible offer, it’s likely that deal sites have already discovered it. Check sites like Kinja Deals, Slickdeals, or DealNews to confirm the discount. You can also use platforms like Consumerist or the Better Business Bureau to investigate potential scam sites. Additionally, WhoIS.net allows you to look up the registrant details of the domain.
Scams on Social Media
When I first read it, I thought it was pretty cool. The person who tagged me is someone I trust and who’s very nice, so I assumed it was her idea. It appeared to be something original.
Social media often feels so personal that it’s easy to fall for fraud. Here are a few other holiday scams that have made the rounds on social platforms:
Fake Deals from Strangers: You post about a gift you’re searching for, and then you receive a direct message or tag from someone offering to sell you the item. After you send payment, the scammer disappears with your money or credit card/bank information, and you never hear from them again.
Fake Gift Cards: Scammers share fraudulent gift certificates on social media, collect your personal information, then sell it to telemarketers or, worse, steal your identity.
URL Scams: Scammers bait you with a message or post containing a link you must click for more details. Once you click, it steals your login credentials or installs malware on your device.
It’s important to remember not to share any personal information with a stranger, especially when it involves sensitive details like your credit card number. Avoid clicking on any unfamiliar links sent to you through DMs or tags as well.
Phishing Emails from Fake Retailers
Email fraud isn’t new, but it tends to rise during the holidays when people expect order updates or shipping notifications from retailers. During this busy time, shoppers may overlook confirmation or account creation emails. These emails often appear to be from reputable companies like Amazon or UPS. Some may even claim there’s an issue with your order, while others offer discounts or deals. By clicking the link, you might inadvertently download malware, or worse, input your password, address, or personal details, which scammers will steal.
These emails may look convincing, but you can spot the red flags by hovering over any links to view the URL or checking the email address itself. You’ll likely find that the link is suspicious, such as www.amazon.subdomain.com. This link won’t take you to Amazon, but to a different URL altogether. If you’re still uncertain about an email asking for personal information or to check your order status, visit the website directly to track your order or find your tracking number. As a general rule, always think twice before engaging with retailer emails and avoid clicking any links or attachments unless you’re absolutely sure about them.
Deceptive Store Credit Cards
Store credit cards aren’t exactly a scam, but they’re often a poor financial choice. Despite this, many people still fall for them and find themselves trapped in an endless cycle of debt. Retailers entice shoppers with “deferred interest” cards that resemble “0% introductory APR” credit cards, but they come with a catch.
With a “0% introductory APR” card, you pay no interest for an introductory period, after which your balance accrues interest at a standard rate. Deferred interest cards follow similar rules, but here’s the catch: you must pay off the full balance by the end of the promo period, or you’ll be charged interest for the entire promotional period. Interest rates are steep too. A study from MagnifyMoney shows the average rate is 24.8 percent.
Deferred interest cards might be worthwhile if you can pay off the balance quickly and get a great discount, cash back, or other benefit for signing up. But generally, store credit cards have poor terms. They’re also not ideal for your credit score. If the discounts are appealing, consider opting for a rewards card instead. Websites like NerdWallet can help you find one, and they outline the terms before you sign up. Of course, always read the fine print.
While these tips may seem obvious, remember: fraudsters are experts at creating the appearance of legitimacy. Always be skeptical. Think twice before sharing any personal information, especially through social media or email. Regularly review your bank statements and credit reports for any signs of fraudulent activity. Also, make sure to update your antivirus and anti-malware apps to protect yourself, even if you accidentally click on something suspicious.
Illustration by: Sam Woolley
