How to Spot and Avoid Financial Scams This Holiday

According to AARP’s 2024 Fraud Watch Network™ report, more than 80% of U.S. adults surveyed have experienced or been targeted by holiday-related scams. Common tactics include fake charity solicitations, online shopping scams, and fraudulent shipping notifications — making it more important than ever to stay alert this season.

While these statistics are concerning, there’s no need to let fraud fears dampen your holiday spirit. By learning what to watch for and how to protect yourself, you can keep scammers on Santa’s ‘naughty list’ and enjoy a safe, magical season.

Here are six common scams to watch for — and tips to keep your personal and account information safe.

1. The Amazon Scam

For many holiday shoppers, Amazon is a go-to for gift ideas and deals. However, be cautious of emails, text messages, and phone calls claiming to be from Amazon; they could be fraudulent attempts to steal your information.

For instance, if you receive a text message claiming to be from Amazon that says there is a problem with your payment information, ignore it. This could be a smishing attempt to steal your personal information. Instead, log in to your Amazon account and check the Message Center for legitimate communications.

2. The Romance Scam

Although the holiday season represents a time of togetherness for many, it can be lonely for others. Fraudsters exploit individuals’ emotions during the holidays using social media and dating websites. They may impersonate someone seeking a meaningful relationship or someone in need of money.

To avoid falling victim to such schemes, verifying the identity of the person you’re communicating with is essential. If they request money or personal information, consider it an immediate red flag for potentially fraudulent activity. Never share personal information with someone you haven’t met in person.

To learn more about how these scams work and how to protect yourself, check out the FBI’s Romance Scams page for detailed tips and resources.

3. The Gift Card Scam

Be cautious of phone calls, emails, or text messages from individuals who request that you purchase a gift card as payment for an outstanding bill or prepayment for a service they claim to offer.

For instance, they might propose a home-related service in exchange for an Amazon gift card purchased upfront. After you acquire the gift card, they’ll request its number and PIN, granting them access to the card’s funds without needing the physical card. This leaves you with an empty gift card and no service rendered in return.  

To ensure your holiday season stays merry and scam-free, remember that legitimate businesses or government agencies do not request payment in the form of gift cards.

If you purchase gift cards this holiday season, save receipts and take pictures of the card numbers and PINs. This information can bring peace of mind if you find yourself in this unfortunate situation. Plus, it will allow you to file a report with the gift card company or the Federal Trade Commission if you suspect any fraud.

4. The Charity Scam

The holidays are a time when many people donate to charities. Yet, it’s important to be cautious of fraudsters who may try to exploit this spirit of generosity.

They may reach out via phone, email, text message, or even through crowdsourcing platforms, such as GoFundMe, soliciting donations on behalf of a charity that is near and dear to your heart. They may also redirect you to a fraudulent website, urging you to enter payment information or attempt to get you on the phone to disclose personal information.

If you choose to make donations this holiday season, consider using a credit card if it’s an option. Many major card issuers offer zero-liability policies that provide financial protection against fraud, ensuring your generosity remains secure.

On the other hand, cash, cryptocurrency, and wire transfers can be more challenging to recover, so it’s advisable to avoid using these methods when donating. If asked to donate using any of these payment methods, it should alert you to a potential fraudulent scheme.

Gathering information about the charity, including its name and the cause it supports, is essential if you receive a solicitation for a donation. Utilize reputable websites, such as CharityWatch or Charity Navigator, to evaluate the organization’s legitimacy.

5. The Lottery Scam

Generally, if something appears too good to be true, it usually is. This practice applies to the prevalent holiday scheme involving fraudsters claiming you’ve won a substantial prize just in time for the holidays, all yours for the taking if you share your personal information with them.

Exercise caution if you find yourself in a situation where you’re supposedly winning big this holiday season. Ask for the name of the company claiming you’ve won the prize and contact them directly to verify your status as a winner. Instead of using the contact details provided by the person who claimed you won, research the company’s website and use the contact information listed there.

Remember, a legitimate prize should never require you to disclose personal information or make a payment.

6. The Shipping Scam

Have you ever come home to an unexpected package, only to excitedly tear it open and realize it’s not something you ordered? If so, you may have been swept into a scam called “brushing.” Although receiving a free item in the mail might seem harmless, this increasingly common shipping scam uses inexpensive, unexpected shipments to deceive — and potentially harm — the recipients.

A brushing scam is when online sellers send you unsolicited packages to boost their product rankings. They create fake accounts using legitimate (but often stolen) personal information, place fake orders, and post glowing reviews designed to manipulate the online marketplaces’ algorithms.

In some cases, scammers include QR codes in the packages, which, if scanned, can lead to malicious websites intended to steal your personal information or install harmful software on your device.

To protect yourself from a brushing scam, avoid scanning unknown QR codes, monitor your accounts for suspicious activity, change your passwords frequently, and report any unexpected packages to the relevant vendors or authorities.

How To Be a Fraud Fighter During the Holidays

Fraud prevention isn’t just for the holidays — it’s a year-round necessity. But with scams on the rise this season, staying alert is more important than ever. Explore tips and tools in the Connexus Security & Fraud Center to keep your accounts — and your peace of mind — safe.

This content is intended to provide general information and shouldn’t be considered legal, tax, or financial advice. It’s always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.