A Savvy Shopper's Guide to Avoiding Holiday Scams

Unfortunately, scammers are getting more creative with their approaches these days. If you're not cautious, you may give fraudsters access to your money without realizing it. When shopping for gifts this season, it's imperative to be alert to potential holiday scams. 

Now more than ever, scammers are looking to trick busy shoppers. Here are a few tips to avoid holiday scams that could drain your bank account or drive up your next credit card bill. 

1. Don't click on links

Beware of any links you receive by email or text message, especially if it's from someone you don't know or the link or message was sent to you out of the blue. Many scammers use phishing links to collect personal information from unsuspecting people. The link may lead you to what looks like a legitimate website, but it could be a scammer trying to get you to provide your banking or credit card details.

Fake package delivery texts and emails are popular scams that make their rounds during the holidays. These messages look like package delivery updates and include phishing links. If you're unsure whether a link is legitimate, avoid clicking it. Instead, contact the company directly to get more information. 

2. Check company reviews before placing an order 

It's best to stick with well-known, established companies so there's less risk of you getting scammed. But if you're considering buying from a brand that isn't familiar to you, it's a good idea to do some research first. Search the company name using the word "scam" or "reviews" to see what other shoppers have to say. Doing this can help you avoid losing money. 

3. If a deal seems too good to be true…it probably is

Getting a deal on the perfect present for a loved one can feel like a major win. But make sure you're only considering legitimate deals. If an offer sounds too good to be true, it likely is. For example, if you see a shopping website selling name-brand headphones for $40 instead of their usual $250 price, you can assume it's likely a scam. Always trust your gut as you shop for holiday gifts. 

4. Be cautious when contacting customer service 

Whether you need to contact your airline for help rebooking a flight or start a return for a clothing item you purchased online, be sure you're contacting the official company. Scammers are tricking people by advertising fake customer service phone numbers online. Without realizing it, you might Google the company's customer service line and end up calling a fake service that wants to charge you a fee to change your flight or process your return. 

5. Use a credit card to pay for your shopping purchases 

As you shop this holiday season, using credit cards rather than debit cards is best. You'll have greater fraud protections. If someone acquires your credit card details and makes a purchase you didn't authorize, you'll be protected. 

Many credit card issuers have $0 fraud liability policies. You won't get the same level of protection when using cash or debit cards. If you fall victim to fraud, you can contact your credit card company to remove the charge from your account and send you a new credit card. 

Another way to protect yourself and stay alert is to carefully review your recent credit card transactions often throughout the busy holiday season. When you do this, you'll be able to spot unusual transactions quickly so you can report them immediately. 

Take extra care to protect yourself

Having your hard-earned money taken from you by a fraudster can be upsetting and stressful. But you can avoid making costly mistakes by being alert to potential scams. This holiday season, as you do your shopping, take extra care. For additional financial tips, check out our free personal finance resources.