Stay Safe This Holiday Season: How to Avoid Common Shopping Scams

The holiday season is a time for joy, family, and celebration—but unfortunately, it's also a prime time for scammers. As shoppers search for the perfect gifts, fraudsters are finding new ways to take advantage of holiday cheer. At UT Federal Credit Union, we're committed to keeping your financial information safe. Here are five common holiday shopping scams to watch for and tips to protect yourself this season.

1. Fake Online Stores

The internet makes holiday shopping convenient but also opens the door for fake online stores. These sites often mimic legitimate retailers and offer discounts that seem too good to be true.

How to Spot the Scam:

• Look for red flags like poorly designed websites, generic product descriptions, or a lack of customer reviews.
• Check the URL for misspellings or slight variations (e.g., "amaz0n.com" instead of "amazon.com").

Protect Yourself:

Always shop on reputable websites and verify the retailer's legitimacy before making a purchase. If a deal looks suspicious, trust your instincts—it's better to miss out on a discount than to fall victim to fraud.

2. Phony Charities

The holidays are the season of giving, and scammers exploit that generosity by posing as fake charities. They'll pressure you to donate quickly without providing legitimate details about their organization.

How to Spot the Scam:

• Beware of unsolicited donation requests via phone, email, or social media.
• Legitimate charities will have a verifiable history and proper documentation.

Protect Yourself:

Research any charity before donating. Use trusted resources like Charity Navigator to confirm their legitimacy. UTFCU also recommends paying by check or credit card to maintain a record of your contribution.

3. Gift Card Scams

Gift cards are a popular and convenient present but also a target for scammers. Fraudsters may tamper with gift card packaging or convince you to pay for items or services with gift cards.

How to Spot the Scam:

• Avoid purchasing cards that appear to have been opened or tampered with.
• Be wary of anyone requesting payment in gift cards—it's almost always a scam.

Protect Yourself:

Buy gift cards directly from stores and inspect the packaging before purchasing. If you're using gift cards for online shopping, only enter details on secure and verified websites.

4. Package Delivery Scams

With the rise of online shopping comes an increase in package delivery scams. Fraudsters may send fake delivery notifications via email or text, prompting you to click on malicious links or share personal information.

How to Spot the Scam:

• Legitimate delivery services won't ask for sensitive information like your Social Security number.
• Watch for poor grammar or generic greetings like "Dear Customer."

Protect Yourself:

You can track your packages using official retailer or shipping company websites. Never click on suspicious links or provide personal information in response to unsolicited messages.

5. Social Media Marketplace Scams

Shopping on social media platforms can be convenient but also carries risks. Scammers may sell counterfeit items, fail to deliver purchases or steal your financial details.

How to Spot the Scam:

Offers that seem "too good to be true" are often fraudulent.

Sellers who demand upfront payment without offering secure transaction options are red flags.

Protect Yourself:

Use secure payment methods like credit cards or services like PayPal that offer buyer protection. If possible, meet local sellers in safe, public places to exchange goods.

6. Fake Holiday Jobs

Many people work seasonal jobs during the holidays. However, as the BBB points out, not all seasonal jobs are legitimate. Seasonal employment opportunities are a staple of the holiday season, but scammers exploit this by advertising fake jobs to steal personal information.

How to Spot the Scam:

• Offers that promise high pay for minimal effort.
• Requests for upfront payments for training or equipment.

Protect Yourself:

Always research any company before applying. Only provide sensitive information like your Social Security number if you're confident the job is legitimate.

7. AI Scams

With artificial intelligence (AI) advancements, scammers now use tools like voice cloning or chatbots to impersonate people or businesses.

How to Spot the Scam:

• You may receive a message that seems like it's from a loved one or reputable company but feels slightly off.
• Be wary of unexpected voice messages or texts asking for personal or financial information.

Protect Yourself:

Verify any unusual requests through direct contact. If a message claims to be from UTFCU or another trusted institution, call us directly using our official number. Remember never to provide personal information over the phone.

8. Fake Gift Exchange and Social Media Giveaways

Holiday gift exchanges or social media giveaways may sound like fun ways to spread cheer, but some are simply scams designed to collect personal data or money.

How to Spot the Scam:

• Exchanges that require personal information or an entry fee.
• Giveaways from accounts with minimal history or no official verification.

Protect Yourself:

Decline invitations to join these social groups. Report them to the U.S. Postal Inspection Service and to the social media platform you're using. Participate only in exchanges or giveaways from trusted sources. Avoid sharing personal or payment information unless you're certain it's safe.

9. Travel Scams

Many people plan holiday trips to visit family or take vacations, but scammers often advertise fake travel deals or accommodations.

How to Spot the Scam:

• Offers that demand immediate payment or lack detailed information.
• Fake listings for vacation rentals at unbeatable prices.

Protect Yourself:

Book travel through reputable websites or travel agents. Research reviews and confirm legitimacy before making any payments.

10. Phishing Through Emails, Websites, or Social Media

Phishing scams increase during the holidays as scammers attempt to trick you into sharing sensitive information through fake emails or websites. In some cases, you may unknowingly download viruses onto your device. 

How to Spot the Scam:

• Emails with urgent requests or suspicious links.
• Websites with poor design, incorrect URLs, or fake security badges.

Protect Yourself:

Don't click on links or open attachments in unsolicited emails. Always verify emails or links before you click. Check the sender's email address and avoid entering personal information on unfamiliar websites. Do not provide sensitive information through email or over the phone. Legitimate providers won't ask you to do that.

General Tips for Safe Holiday Shopping

• Enable Account Alerts: UTFCU offers tools to help monitor your accounts for suspicious activity. Set up transaction alerts to stay informed.
• Be Wary of Unsecured Wi-Fi: Avoid shopping or entering sensitive information while connected to public Wi-Fi networks.
• Use Strong Passwords: Secure your online accounts with complex passwords and two-factor authentication.
• Check Your Accounts Regularly: Review your UTFCU account statements often to ensure no unauthorized transactions occur.

At UTFCU, we prioritize your financial well-being. By staying vigilant and using these tips, you can enjoy a stress-free holiday shopping experience. If you suspect fraud on your UTFCU account, contact us immediately for assistance.

Stay safe, shop smart, and have a happy holiday season!