With Christmas fast approaching, Better Business Bureau (BBB) has compiled its annual top 12 scams of Christmas based on consumer reports submitted to BBB Scam Tracker. In December 2021, North American consumers reported over 3,200 scams to BBB, resulting in $4.5 million lost to fraudulent and unethical businesses. While con artists’ tactics are constantly shifting and evolving, holiday shoppers can avoid most of the scams on this list by taking a few simple precautions.
Social media continues to be a favored platform for scammers to carry out their schemes, and BBB recommends always exercising caution with social media ads promoting discounted items, holiday events, job opportunities and donation requests, as well as direct messages from strangers. If requested to make a payment or donation by wire transfer, through a third party, gift card or prepaid debit card, exercise care, as these are red flags of a potential scam.
BBB’S 12 SCAMS OF CHRISTMAS
1. Misleading social media ads: It is common for consumers to see advertisements from well-known businesses and individual sellers on their social media feeds. Whether the ad appears to be from a well-known company or not, it is important to research the offer or product before you buy. BBB receives reports daily of consumers paying for items they never receive, being charged monthly for a service they never signed up for, and receiving products that are either an obvious counterfeit or of significantly less quality than advertised. The 2022 BBB Online Scams Report found that 30% of all scams reported to BBB Scam Tracker were regarding online purchases, with 72% of victims losing money.
2. Social media gift exchanges: While engaging in gift exchanges is a hallmark of the Christmas holiday, doing so over social media with anonymous strangers is a recipe for disaster. This movement comes back each holiday season, often with new versions and products as its focus. One version of this scam revolves around exchanging bottles of wine, while another suggests purchasing $10 gifts online to exchange. Other online gift exchanges may ask you to submit your email and personal information to be put into a lottery. Participants will pick a name and send money to strangers to “pay it forward.” Some versions focus on a “Secret Santa Dog,” asking participants to purchase a $10 gift for their “secret dog.”
No matter the details of the exchange, participants of these online movements often share their personal information, along with those of their family members and friends, with unknown individuals. Social media gift exchanges may also trick them into buying gifts or providing money to a scammer who is capitalizing on their giving spirit. There is also a good chance the entire promotion is an illegal pyramid scheme.
3. Holiday apps: Apple’s App Store and Google Play list dozens of holiday-themed apps where children can video chat live with Santa, light the menorah, watch Santa feed live reindeer, track his sleigh on Christmas Eve, or relay their holiday wish lists. It is important to review app privacy policies to see what information will be collected and what permissions they require. Be wary of free apps, as they often contain more advertising than apps that require a fee. Some free apps may also include malware that will infect your device with programs designed to track online activity or keystrokes.
4. Alerts about compromised accounts: BBB continually receives reports to Scam Tracker about impersonators claiming the recipient’s Amazon, PayPal, Netflix or bank account has been compromised. Victims receive an email, call, or text message explaining that there has been suspicious activity on one of their accounts. It further urges them to take immediate action to prevent the account from being compromised. Often, the victim is directed to a look-alike website that requests they confirm their account details. Be extra cautious about unsolicited calls, emails, or texts and avoid clicking on any links or scanning a provided QR code. To verify that your account is secure, use a known and trusted method such as typing in the website address or using the official app.
5. Free gift cards: Nothing brings good cheer like the word “FREE.” However, scammers have been known to take advantage of this tendency by sending bulk phishing emails requesting personal information to receive free gift cards. In some of these emails, scammers impersonate legitimate companies, like Starbucks, and promise gift cards to loyal customers that answer a short survey or provide certain information. They may also use pop-up ads or send text messages with links saying you were randomly selected as the prize winner.
If you receive an unsolicited email with gift card offers, do not open it. Instead, mark it as spam or junk. Most importantly, be sure to avoid clicking on any links.
6. Temporary holiday jobs: Many businesses typically hire seasonal workers to help meet the demands of holiday shoppers. Shipping and delivery services are often the top holiday employers due to increased online orders and the need to deliver most packages before Christmas. Seasonal jobs are a great way to make extra money and have the possibility of turning into a long-term employment opportunity. However, job seekers need to be wary of employment scams aimed at stealing money and personal information from job applicants. Be cautious of applying for jobs that promise a high wage with flexible hours and no experience required. During the holiday season, be particularly wary of secret shopper and car-wrap opportunities.
7. Look-alike websites: The holiday season brings endless emails offering various deals on a range of products and services. While many of these may be legitimate marketing efforts by reputable businesses, BBB recommends consumers remain wary of following links contained in unsolicited emails. Some may lead to look-alike websites created by scammers to trick people into downloading malware, making dead-end purchases, and sharing private information. If you are curious to learn more about a deal or promotion from a favored retailer that you found in an email, it is safest to navigate directly to their official website rather than follow a provided link. Consumers can also preview the website the link will route them to by hovering their cursor or finger over the clickable text or image.
8. Fake charities: Typically, 20% of all charitable donations are received during the last few weeks of the year, and scammers are sure to try and take advantage of the increase in consumer generosity. Donors are advised to look out for fraudulent charities and scammers pretending to be individuals in need. Avoid making spontaneous donation decisions to unfamiliar organizations. Responsible organizations will welcome a gift tomorrow as much as they do today. Donors are encouraged to verify their donation is going to a charity that will use it responsibly by reviewing its charity report at BBB’s Give.org. When possible, donate to the charity through their website and use a credit card.
9. Fake shipping notifications: As more consumers make purchases online, there is an increase in the number of notifications about shipping details from retailers and carriers. Scammers are using this new surge to send phishing emails with links enclosed that may allow unwanted access to your private information or download malware onto your device. They may also try to trick people into paying new shipping fees.
10. Pop-up holiday virtual events: Many local in-person events, such as pop-up holiday markets or craft fairs, have moved online. Scammers are creating fake event pages, social media posts, and emails, charging admission for what used to be a free event. Their goal is to steal credit card information. Confirm with the organizer of the event if there is an admission fee. In cases where there is a charge, use a credit card. If the event is free, watch for scammers trying to claim otherwise.
11. Top holiday wishlist items: Low-priced luxury goods, jewelry, designer clothing, and electronics are almost always cheap counterfeits and knockoffs. The same applies to popular toys. This year, Squishmallows, Magic Mixies Magical Misting Crystal Ball, Snap Circuits, Breyer Horses Unicorn Magic Wood Stable, and National Geographic Break Open Geodes are some items in high demand. Be cautious when purchasing these popular toys from resellers on Facebook Marketplace and other platforms.
12. Puppy scams: Many families may consider adding a furry friend to their household this year. However, be on the lookout for scams. Many would-be pet owners turn to the internet to find their future cat or dog, but experts say a shocking 80% of sponsored pet advertisements may be fake. Be sure to see the pet in person before making a purchase.
